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414(h) Retirement Pick-Up Plans

Keeping 414(h) Pick-Up Plans Compliant

Section 414(h) of the Internal Revenue Code enables governmental employers to "pick up" certain employee contributions to retirement plans and thereby make them pre-tax contributions (and, in some cases, a payment by the employer). Despite considerable IRS guidance on pick-up contributions, employers often fall into noncompliance.

We understand all rules surrounding 414(h) and compliance requirements.

Employee Benefits Law Group understands these rules and has successfully advised numerous public agencies on avoiding problem areas. We can help you stay compliant by determining:

  • Whether "pre-tax" employee contributions were properly picked up.
  • Whether plan designs that use or rely on pick-ups comply with current IRS guidance.
  • Whether certain provisions involving pick-ups may create tax problems.
  • If special timing rules apply to employee contributions that will be picked up.