RIC 457/401a Resource Bank for Employers

Federal Changes For 457 Plans

• Payroll Deduction Effective Date Change -  A recently enacted federal law allows 457 deduction change requests to be effective with the next available paycheck, which may fall in the same month as the RIC Account Form is submitted. There is no longer a need to wait until the first paycheck of the next month!
• 2023 Contribution Limits Increased - Contribution limits have increased for 2023. If a participant wants to change their contribution amount, they must complete and submit the RIC Account Form. 

Employer Responsibility - You must ensure that each participant's payroll deductions do not exceed the maximum limits.

• Employer Contributions - Please note that the limit for employer contributions into the 401a plan has increased to $66,000 for 2023.
• New Hires - If you hire any new employees and they contributed to a previous employer’s 457 account in the same year, remind them that they are responsible for ensuring that maximum contribution limits are not breached. You may wish to ask them what they contributed at their previous employer to help them make sure they will not over-contribute. 

Notice of RIC Program Updates

• AIG Is Now Corebridge Financial: (If you do not offer AIG as a provider, please disregard). Participants recently received information from Corebridge Financial on the name change and no action is required. This is just a name change – nothing else is changing. You do not need to make any changes to your remittance process.
• Transfers Between RIC Providers Form: With the revised RIC Account Form you will notice that provider transfers now require a Transfer Between RIC Providers form.
• Minimums No Longer Required - RIC no longer requires a minimum contribution amount to participate. We are changing this on your RIC custom webpage. We will send you an awareness email to forward to your employees highlighting this enhancement to your RIC benefit. If you wish to keep this restriction for your plan, please email RIC.
• 3-Year Catch-Up Benefit - If you have been partnering with RIC for more than 2 years, we will be adding the option for participants to request the 3-Year Catch-Up Worksheet to your custom RIC webpage. If you have questions, please contact RIC.
• RIC Account Forms Are Being Revised: We are in the process of updating the RIC Account Form for all employers. We will send a quick email to you when your form is ready. For our records, please continue to send RIC a copy of all completed RIC Account Forms you receive. Email them to ric@iowa.gov or fax them to 515-281-5102. 
• Event/Action Chart: Keep this Employer Event/Action Requirements handy to know what to do when you have a new hire, someone leaves employment or someone changes payroll deductions.