June 2025

 This update provides the latest on SECURE 2.0 Act changes for Roth contributions and introduces a new payroll integration tool. It also highlights the upcoming quarter's participant communications and our free financial education website. Plus, learn about another way for your key executives and other top management employees to save.

SECURE 2.0 Act Update
Roth Only Catch-Up for Highly Paid Individuals
The Roth only catch-up provision for certain highly paid individuals (HPIs) is coming in 2026! In general, participants who are 50 and older with FICA wages in the prior year of $145,000 (indexed annually) or more can make catch-up contributions only as Roth after-tax.

Take the time now to ask your payroll provider how they will handle pre-tax deferral elections once participants reach the regular IRS limit. We are ready to partner with you and your payroll provider to identify your HPIs and make certain any catch-up contributions are in the required form of Roth after-tax.

We are also working on participant communications for those affected by this change.

API Payroll Integration
Milliman is rolling out a new API based integration tool for secure HRIS and payroll submissions through Finch. Finch's third-party technology platform allows for either 180° or 360° integration with 200+ payroll platforms.
  • Finch powers HRIS & payroll integrations. Through the Milliman Plan Sponsor site, clients will utilize the Finch Connect tool, which will authorize automated passage of payroll data, eliminating the need for manual intervention.
  • Best-in-class encryption protocols. Finch’s infrastructure enforces the use of TLS 1.2 to encrypt data in transit between your application and Finch. All data is encrypted using AES 256-bit encryption.
  • Secure cloud infrastructure. Finch is hosted on industry-leading cloud infrastructure, leveraging years of safety enhancements to maximize performance, resilience and speed of deployment.
There is no fee for this service. This functionality will be rolled out in phases during 2025.
What Your Participants Will See Next From Milliman
In the next few months, Milliman will continue reaching out to participants to help them learn more about their retirement options and how to prioritize their financial success.
  • July Focus: Women and Wealth Webinar on July 22. Use this digital sign to promote the webinar. 
  • September Focus:
    • Why Insurance Matters
    • Naming a Beneficiary
    • Cybersecurity: Protecting Your Finances. We will send email invitations to our October 7 webinar during the last week of September. Use this digital sign to promote the webinar.
A Financial Wellness Boost For Your Participants
Your participants have access to healthyfinancialoutcomes.com, a financial education site maintained by our recordkeeper, Milliman, that has recently been thoughtfully redesigned to improve financial literacy and address both the emotional and practical aspects of managing money. The goal is for participants to feel confident and informed so they can take the next step that’s best for them on their financial journey. Key highlights of the refreshed platform include:
  • More Engaging, Intuitive Navigation: Making it easier for participants to find the information they need.
  • Recommended Guides: Allowing participants to dive into topics that interest them the most or choose subjects based on their financial priorities and/or life stage.
  • Extensive Menu of Articles, Videos, and Events: Catering to various learning preferences; Milliman’s platform offers a rich library of resources.
Participants have access to this free resource 24/7 — no login required.

Nonqualified Deferred Compensation Plan
As a sponsor of the Co-op 401(k) Plan, you have the option to add a nonqualified deferred compensation plan. This type of plan is designed to meet specialized retirement needs for key executives and other top management. A nonqualified deferred compensation plan:
  • Helps employers attract, retain and reward key employees
  • Is not subject to IRS contribution limits
  • Offers distributions while still employed
  • Reduces current taxable income for participants
  • Has no early withdrawal penalties on scheduled payments
  • Allows employer contributions
For more information, please review this flyer or contact your Milliman Relationship Manager.
Rockbridge Investment Management
For investment advice related to asset allocation, participants may call Rockbridge Investment Management at 1.888.689.2351 or visit them online at rockbridgeinvest.com/coop401k. Experienced advisors are available to assist with any retirement planning matter.
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