Plan Sponsor News

As the year ends, it’s a good time for your employees to assess whether they’re saving all they can in their workplace retirement plan. For many workers, however, debt could be getting in the way.

In the third quarter of 2023, U.S. household debt increased by $228 billion to reach $17.29 trillion.¹ With those numbers in mind, it may not be surprising that 47% of workers say that debt is negatively impacting their ability to save for retirement.² 

In fact, according to the EBRI 2023 Retirement Confidence Survey, two-thirds of workers describe their debt as a problem.³

Here’s a snapshot of what Americans owed as of Q3 2023:⁴

Mortgage debt — $12.14 trillion
Auto loan balances — $1.6 trillion
Student loan debt — $1.6 trillion
Credit card debt — $1.079 trillion

Saving for retirement remains a concern of workers, with 45% saying it’s a top financial issue causing them stress.⁵ And helping ensure workers’ financial security is increasingly viewed as a responsibility of employers. A third of employees (34%) feel the most valuable improvement to their benefits package would be more resources to help with their financial well-being.⁶ What’s more, 41% of employees believe it’s become more important for employers to offer financial wellness programs.⁷

Moving forward, employees will likely look to their employers even more as an important source for such information. As a plan sponsor, you can count on Mutual of America to provide a range of educational materials, planning tools and other valuable resources designed to support your employees and help them prepare for a secure retirement.

¹Federal Reserve Bank of New York’s Center for Microeconomic Data, Household Debt and Credit Report, Q3 2023. https://www.newyorkfed.org/newsevents/news/research/2023/20231107
²Employee Benefit Research Institute and Greenwald Research 2023 Retirement Confidence Survey, Page 6. https://www.ebri.org/docs/default-source/rcs/2023-rcs/2023-rcs-short-report.pdf?sfvrsn=7c8d392f_6
³Employee Benefit Research Institute and Greenwald Research 2023 Retirement Confidence Survey, Page 24, Figure 14. https://www.ebri.org/docs/default-source/rcs/2023-rcs/2023-rcs-short-report.pdf?sfvrsn=7c8d392f_6
⁴Federal Reserve Bank of New York’s Center for Microeconomic Data, Household Debt and Credit Report, Q3 2023. https://www.newyorkfed.org/newsevents/news/research/2023/20231107
⁵Employee Benefit Research Institute and Greenwald Research 2023 Workplace Wellness Survey, Page 5. https://www.ebri.org/docs/default-source/wbs/wws-2023/wws-2023_short-report.pdf?sfvrsn=f55f062f_2
⁶Employee Benefit Research Institute and Greenwald Research 2023 Workplace Wellness Survey, Page 7. https://www.ebri.org/docs/default-source/wbs/wws-2023/wws-2023_short-report.pdf?sfvrsn=f55f062f_2
⁷Employee Benefit Research Institute and Greenwald Research 2023 Workplace Wellness Survey, Page 35, Figure 24. https://www.ebri.org/docs/default-source/wbs/wws-2023/wws-2023_short-report.pdf?sfvrsn=f55f062f_2

On November 9, Mutual of America Financial Group held a webinar covering important SECURE 2.0 Act provisions going into effect in 2024.

The session featured speakers Nick Curabba, Senior Vice President and Associate General Counsel, and Earl Jones, Vice President, National Accounts, along with moderator Kieran O’Dwyer, Vice President, Corporate Communications.

Click here to watch a replay of “SECURE 2.0 Act: What’s Coming in 2024,” and learn more about: 

Both mandatory and optional provisions commencing in January.
An update on changes to catch-up rules for Roth contributions.
What plan sponsors can expect from Mutual of America for help staying up to date on additional communications, regulatory guidance and any plan amendments. 

Contact your local Mutual of America Financial Group representative for answers to any questions you may have about how this information may affect you and your employees.

The Internal Revenue Service (IRS) has announced adjustments to annual contribution limits for 2024, giving retirement plan participants the opportunity to save more through their workplace retirement plans.

The amount individuals can contribute to their 401(k), 403(b) and most 457 plans will increase to $23,000 in 2024, up from $22,500.  

The catch-up contribution limit for employees age 50 and over will remain $7,500, the same as 2023. This means that employees 50 and over will be able to contribute up to $30,500 next year.

The limit on annual contributions to an IRA will be increased to $7,000, up from $6,500. The IRA catch-up contribution limit for employees age 50 and over remains $1,000.

Full details on these changes and other retirement-related adjustments for 2024 can be found in IRS Notice 2023-75. As always, please reach out to your local Mutual of America Financial Group representative with any questions.

*Employee Benefit Research Institute and Greenwald Research 2023 Workplace Wellness Survey. Page 30, Figure 19.