Proper utilization of plan forfeitures in a 401(k) profit sharing plan requires utilization both in form and timing, as prescribed by the governing plan document. Most plan forfeitures are derived from non-vested accounts of plan participants. Generally a participant forfeits…
Implementing Participant 401k Elective Deferral Elections
Utilizing Correct “Compensation” Participant 401k elective deferral elections represent just what they’re titled, i.e. an election to defer all or a portion of the participant’s current “compensation”, or what would have been paid to the participant in cash, but for…
Understanding Maximums – The Deductible Retirement Plan Contribution
The Deductible Retirement Plan Contribution is NOT to be confused with the maximum allocation permissible to any one individual in a qualified retirement plan. Employer contributions to defined contribution plans (like 401(k) / profit sharing plans) are indeed limited to…
American Taxpayer Relief Act
Congress Passes American Taxpayer Relief Act Bill to Avert Fiscal Cliff Tax Consequences In the early morning hours of Jan. 1, 2013, the Senate, by a vote of 89-8, passed H.R.8, the “American Taxpayer Relief Act” (the Act). Late on…