Compliance Corner: Q4 2024 – Year-End Checklist & New 2025 Limits

Dec 30

As 2024 draws to a close, now is the time to prepare for a successful start to the 2025 plan year. From updated IRS contribution limits to new requirements under SECURE 2.0, this quarter’s update covers key reminders, deadlines, and upcoming changes that could impact your retirement plan administration.

✅ Year-End Checklist

Make sure you’ve completed these essential tasks before 2025 begins:

Confirm that all required notices to participants have been sent (Safe Harbor, QDIA/automatic enrollment, and fee disclosures).
Notify your Hunnex & Shoemaker administrator if there have been changes in ownership, contact info, or new subsidiaries.
Ensure your payroll provider has updated IRS limits for 2025 prior to any employee deferrals.
Reach out with any questions about new SECURE 2.0 provisions that may apply to your plan.

2025 IRS Contribution Limits

Here are the new limits to incorporate in your payroll and recordkeeping systems:

  
      Limit Type
      2024
      2025
    
      Salary Deferral Limit (401(k), 403(b))
      $23,000
      $23,500
    
      Catch-Up Contribution (Age 50+)
      $7,500
      $7,500
    
      Catch-Up Contribution (Age 60–63)
      N/A
      $11,250
    
      Defined Contribution Plan Limit
      $69,000
      $70,000
    
      With Catch-Up (Age 50+)
      $76,500
      $77,500
    
      With Catch-Up (Age 60–63)
      N/A
      $81,250
    
      Compensation Cap
      $345,000
      $350,000

2024 Census Data Reminder

In January, you’ll receive a request for your final 2024 company census data. Please submit the following through Plan Sponsor Link:

Final 2024 census data
Annual questionnaire
W-3
ERISA Bond

Timely and accurate data ensures smooth and compliant plan administration. Contact us with any questions about what's needed.

SECURE 2.0 Spotlight: Age 60–63 Catch-Up Contributions

Beginning in 2025, participants aged 60–63 may make higher catch-up contributions of $11,250. This is in lieu of the regular $7,500 limit.

Key clarifications:

Applies to anyone turning 60 by year-end (even if they’re still 59 at the time of deferral).
Not available to those who turn 64 during the plan year.
If the plan already allows catch-up contributions for age 50+, it's safest to permit this higher amount.
These changes can be adopted operationally before an official plan amendment is issued.

Ensure your payroll provider can properly handle the new limits to prevent errors and year-end corrections.

Payroll Integration with Dynamis

Managing accurate compensation data is key to annual compliance. To simplify census data collection, Hunnex & Shoemaker now partners with Dynamis — a secure, cloud-based platform for automating payroll data sharing.

Benefits include:

Secure API connection for direct payroll data import
Reduced risk of qualification failures
Less manual reporting and follow-up

Interested in streamlining your payroll reporting? Contact bobbi.carey@hunnex.com.

New LTPT Rules for 403(b) Plans in 2025

Starting January 1, 2025, 403(b) plans must follow the Long-Term Part-Time (LTPT) rules already in place for 401(k) plans:

Employees who work 500+ hours for two consecutive years must be offered deferral opportunities.
Years prior to 2023 don’t count toward eligibility.
Student employees may still be excluded under universal availability rules.
Plans that allow deferrals to this group won’t violate universal availability — even if other part-timers are excluded.

Note: Non-ERISA 403(b) plans (e.g., churches, government entities) are exempt from these rules.

Be sure your 403(b) plan is tracking hours and ready to comply in 2025.

Disclaimer: This content is for informational purposes only and does not constitute legal, tax, or financial advice.

Written by: Sam Dart, on behalf of Hunnex & Shoemaker

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