Groom principal J. Rose Zaklad spoke with Chief Investment Officer about the effect of the resumption of U.S. government operations on retirement plans and plan sponsors. The article, “Economic Data to Resume as Government Shutdown Nears End,” reports on various economic aspects of the re-opening, including how the government shutdown resulted in a regulatory slowdown that has impacted plan sponsors awaiting important guidance, such as the Internal Revenue Service’s annual contribution limits for qualified defined contribution plans and individual retirement accounts for 2026.
Zaklad explained that, “[p]lan sponsors should be in the process of or have already finalized their annual participant notices for distribution.” She continued that knowing the limits “seems to be a ‘must-have’ even in a shutdown [and] is particularly urgent this year with the new mandatory Roth catch-up rule going into effect.” Waiting for the annual contribution limits guidance impacts employers’ ability to determine which “employees are impacted by this new rule based on 2025 compensation” and to timely test their payroll systems to account for the new rule.
To read the article, click here.