The Consolidated Appropriations Act of 2023 (“Act”) was passed by Congress in late December 2022 and signed by President Biden on December 29, 2022. The Act, a $1.7 trillion dollar spending bill, contains provisions which modify the laws applicable to welfare benefit plans and retirement benefit plans. Below is a high-level list of the provisions of the Act which are effective in 2023 and which may affect your plan:

Welfare Benefit Plans

• High Deductible Health Plans can continue to waive the deductible for any telehealth services for plan years beginning before January 1, 2025.

Retirement Benefit Plans

• The age for required minimum distributions is increased to 73 starting on January 1, 2023, and age 75 starting on January 1, 2033.
• Employers may now offer de minimis financial incentives to employees to participate in 401(k) and 403(b) plans.
• The early distribution 10% percent tax will not apply to distributions for participants with a terminal illness.
• Plans may allow participants the option of electing to receive matching contributions on a Roth basis.
• Employers who (a) offer eligibility for military spouses within two months of hire, (b) qualify military spouses immediately for any matching contributions, and (c) vest employer contributions at 100% for military spouses, will receive a tax credit.
• Repayment of qualified birth or adoption distributions must be limited to 3 years. Before the Act, the repayment term was not limited.
• Participants in governmental 457(b)...

Read Full Story: https://news.google.com/__i/rss/rd/articles/CBMiTWh0dHBzOi8vd3d3Lmpkc3VwcmEuY...