Reduction in Excise Tax on RMDs

Reduction in excise tax on RMDs Reduces the penalty for failure to take an RMD from 50% to 25%. Further, if a failure to take an RMD from an IRA is corrected in a timely manner, as defined under SECURE 2.0, the excise tax on the failure is further reduced from 25% to 10%. This… Continue reading

Required Minimum Distribution (RMD) Ages Updated

Required minimum distribution (RMD) age changes Increases the required minimum distribution (RMD) age from 72 to 73 for individuals who attain age 72 after January 1, 2023, and age 73 before January 1, 2033. Further, there is a subsequent increase to age 75 for any individual who did not attain age 74 prior to January… Continue reading

Expanded Plan Close/Freeze Policies

In an effort to proactively offer employers options to help meet their unique financial needs and manage the affordability of their MERS plans, the MERS Plan Document was revised to allow more options to employers to close or freeze their current MERS retirement plan and choose a different retirement plan style for their current and/or… Continue reading

Reserve Account Changes

If you have a MERS Defined Contribution Plan (including the DC portion of the MERS Hybrid Plan) or MERS 457 Program, effective April 27, 2021, there are some changes to the way that you can use your plan reserves. These changes are necessary in order to align with IRS guidelines. Plan reserves are assets within… Continue reading

Participant Directed Account/Institutional Fund Cost Reduction

In an effort to provide our customers with superior value and plan transparency, MERS conducts an annual pricing review for all of the plans we offer. Through operational efficiencies and continued growth, MERS has been able to consistently reduce our costs. Since 2012 costs have been reduced seven times. Effective January 1, 2019, MERS is… Continue reading