In late 2022, Congress passed the SECURE Act 2.0, which, along with other items, introduced a new rule requiring that catch-up contributions made by highly compensated employees be made on a Roth ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Dr. JeFreda R. Brown is a financial ...

Even though nondiscrimination testing is likely performed by a plan’s recordkeeper or third-party administrator, plan sponsors need to understand the basics of the tests, including the types of ...

Highly compensated employees (HCEs) own at least 5% of the company where they work or who pass a compensation test. If your employer's 401(k) fails the nondiscrimination test, excess contributions ...

Learn the pros and cons workers should consider before using a workplace retirement plan to save for their later years. They owned more than 5% of the company at any time during the year or during the ...