The 401(k) and (m) Regulations Enter the 21st Century

At the end of 2004, the Internal Revenue Service (IRS) issued final regulations on salary deferrals and matching and post-tax employee contributions under Sections 401(k) and (m) of the Internal Revenue Code (the Code), the first significant update of these rules in almost a decade. The final regulations principally follow the proposed regulations issued by the IRS in 2003 but also provide certain clarifications, as well as some new guidance. In essence, these final regulations update the prior regulations to reflect statutory changes and consolidate into a single source guidance previously issued by the IRS.

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