Retirement Legislation Awaits Further Action for FTI Consulting Employees

Legislation that could benefit FTI Consulting employees and retirees with individual retirement accounts (IRAs) and retirement plans such as employees in FTI Consulting companies, is currently moving through Congress. The Securing a Strong Retirement Act of 2022 has passed almost unanimously in the House. A similar bill (with some differences), the Enhancing American Retirement Now Act, has been drafted in the Senate but will have to wait until Congress is back in session in November for further consideration. If the Senate passes its bill, the House and the Senate would need to reconcile the two bills, and then each would vote on the reconciled bill.

Some significant provisions in the proposed legislation that may aid in your FTI Consulting retirement planning are summarized below.

Contributions
House	Senate
The $1,000 IRA catch-up contribution limit for individuals aged 50 and older would be indexed for inflation, starting in 2024.	The $1,000 IRA catch-up contribution limit for individuals aged 50 and older would be indexed for inflation, starting in 2023.
For workplace retirement plans such as a 401(k), the catch-up contribution limit would be increased to $10,000 (indexed for inflation) for eligible participants aged 62 to 64, starting in 2024.	For workplace retirement plans such as a 401(k), the catch-up contribution limit would be increased to $10,000 (indexed for inflation) for eligible participants aged 60 to 63, starting in 2025.

For SIMPLE plans, the catch-up contribution limit would be increased to $5,000 (indexed for inflation) for eligible participants aged 62 to 64, starting in 2024. For SIMPLE plans, the catch-up contribution limit would be increased to $5,000 (indexed for inflation) for eligible participants aged 60 to 63, starting in 2025. An employer would be able to make matching contributions to a defined contribution plan such as a 401(k) on behalf of an employee who is making qualified student loan payments, starting in 2023. An employer would be able to make matching contributions to a defined contribution plan such as a 401(k) on behalf of an employee who is making qualified student loan payments, starting in 2024.

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Distributions
House	Senate
The current starting age of 72 for required minimum distributions (RMDs) from retirement accounts would be increased to age 73 starting in 2023, age 74 starting in 2030, and age 75 starting in 2033.	The current starting age of 72 for required minimum distributions (RMDs) from retirement accounts would be increased to age 75 for calendar years after 2031.
The penalty for failing to make an RMD would be reduced from 50% to 25%, starting in 2023. In addition, the penalty would be reduced to 10% if the taxpayer corrects an RMD shortfall and submits a corrected tax return before the earlier of (a) when the IRS demands payment or (b) the end of the second taxable year after the taxable year in which the penalty is imposed.	The penalty for failing to make an RMD would be reduced from 50% to 25%, starting in 2023. In addition, the penalty would be reduced to 10% if the taxpayer corrects an RMD shortfall and submits a corrected tax return before the earlier of (a) when the IRS demands payment or (b) the end of the second taxable year after the taxable year in which the penalty is imposed.
Qualified charitable distributions (QCDs) for individuals aged 70½ and older would be expanded to allow a one-time election to be made for a QCD of up to $50,000 (to be adjusted for inflation) to a charitable remainder unitrust, a charitable remainder annuity trust, or a charitable gift annuity.	Qualified charitable distributions (QCDs) for individuals aged 70½ and older would be expanded to allow a one-time election to be made for a QCD of up to $50,000 (to be adjusted for inflation) to a charitable remainder unitrust, a charitable remainder annuity trust, or a charitable gift annuity.
An exception to the penalty for early distributions from a retirement plan would be available for up to $10,000 of distributions to a domestic abuse victim after the date of enactment.	An exception to the penalty for early distributions from a retirement plan would be available for up to $10,000 of distributions to a domestic abuse victim after the date of enactment.

Other
House	Senate
SIMPLE and SEP Roth IRAs would be allowed starting in 2023.	SIMPLE and SEP Roth IRAs would be allowed starting in 2024.
If a retirement plan permits it, an employee would be able to elect to have employer-matching contributions treated as Roth contributions, starting with contributions made after the date of enactment.	If a retirement plan permits it, an employee would be able to elect to have employer-matching contributions treated as Roth contributions, starting with contributions made in 2023.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.

FTI Consulting offers a comprehensive benefits package, including retirement plans and a 401(k) plan designed to support employees throughout their careers. FTI Consulting provides a defined contribution plan for retirement, which includes employer matching contributions to the employee's 401(k) account. According to sources, the company offers a 5% match for employee contributions. Employees are eligible for immediate participation in the 401(k) plan upon hire, without a waiting period, and employer contributions vest after three years of service (FTI Consulting) (FTI Consulting). The company's 401(k) plan is referred to as the FTI Consulting 401(k) Plan, and employees can contribute a portion of their salary pre-tax, which is matched by the company up to 5%. Additionally, FTI Consulting offers a traditional pension plan as part of its defined benefit program. This pension plan provides 3% contributions from employees, with the company contributing an additional 5%, ensuring a robust financial security framework for long-term employees

In 2023, FTI Consulting announced a restructuring plan that involved streamlining its operations to focus on its core services. This restructuring included layoffs in several departments, particularly affecting support roles and administrative positions. The changes were part of a broader effort to enhance operational efficiency and adapt to evolving market conditions. Understanding these developments is crucial due to the current economic environment, which emphasizes the need for companies to remain agile and cost-effective amid economic uncertainties.

FTI Consulting offers stock options and RSUs as part of its employee compensation package. Stock options typically come with a vesting period and are granted based on employee performance and tenure. RSUs are also granted to employees, usually based on performance metrics and role within the company.

Search for employee reviews and benefits information on Glassdoor, where employees often discuss their healthcare benefits and overall satisfaction with the company. Indeed: Look up FTI Consulting's company profile on Indeed to see if there are any reviews or posted details about health benefits and related employee experiences. LinkedIn: Check LinkedIn for posts or updates related to FTI Consulting’s health benefits from current or former employees.