As a business owner, you have likely considered sponsoring a 401(k) plan for you and your employees. Yet, there is something holding you back from doing so. When we ask employers why they hesitate, we hear many reasons. Whatever the…
It is National Retirement Planning Week!
Retirement is something that many people look forward to, some from their first day on the job! What is retirement going to look like for us? As a nation we are not big savers. According to the U.S. Census the…
DOL Announces a More Flexible Annual Fee Disclosure Deadline
The Department of Labor (DOL) requires sponsors of retirement plans with participant-directed investments to provide participants with a fee disclosure “at least annually”. The DOL has recently amended DOL Reg. § 2550.404a–5 in order to change the definition of “at least annually”.…
Automatic Enrollment for 401(k) Plans – Retirement Plan Update April/May
View This Newsletter: Automatic Enrollment for 401(k) Plans Overview: Automatic Enrollment for 401(k) Plans Popularity of auto-enroll Separating hyperbole from helpful What is Automatic Enrollment? Opt-in vs. Opt-out Automatic escalation Eligible Automatic Contribution Arrangement (EACA) Two special features Deadline extension for corrective…
Employee Benefit Plan Record Retention
Every so often, a client or potential client contacts us inquiring how long they need to retain their qualified retirement plan records. The short answer is “it depends” and “for a long time”. Of course, that short answer isn’t particularly…
Depositing Retirement Plan Contributions – Retirement Plan Update February/March
View This Newsletter: Depositing Retirement Plan Contributions Overview: Depositing Employee 401(k) Elective Deferrals Deadlines Definition of “as soon as possible” Depositing Company Contributions Tax Deductions Not for Profit Organizations (NPO) Deadline Contribution Limits Annual Additions Limit Test Corrections Actual Deferral Percentage…
Paper Filers of Form 5500-EZ May “e-File” Form 5500-SF Instead
Goodbye Paper Filings, Hello 21st Century Sponsors of one-participant retirement plans and foreign plans that were once required to paper file Form 5500-EZ may now “e-file” Form 5500-SF instead. As a third-party administrator (TPA), we are pleased with this decision…
PBGC Form 501: Proof of Payment Now Required on Plan Termination
by Kevin J. Donovan, CPA, EA, FSPA This post applies to defined benefit plans covered by the Pension Benefit Guaranty Corporation (PBGC). What is PBGC Form 501? The PBGC recently updated the instructions to PBGC Form 501, Post Distribution Certification…
Retirement Plan Termination FAQ
The retirement plan termination process varies depending on the type of plan that is terminating: Defined benefit plans not covered by the PBGC Defined benefit plans covered by the PBGC Defined contribution plans Defined Benefit Plans NOT Covered by the…
Understanding the Funding Range in Cash Balance Plans
A cash balance plan is an excellent retirement vehicle for owners, partners and highly compensated employees to receive significant retirement contributions above and beyond a traditional 401(k) and profit sharing plan. With input from the client and their advisors, an…