New Information on Participant Statements: Lifetime Income Illustrations

May 12, 2022    12    12   

If you sponsor a defined contribution retirement plan, the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019 now requires additional information be provided to your plan participants on their quarterly account statements.

Timing of Deposits 401(k)/403(b) Deferrals and Loan Repayments

May 12, 2022    14    14   

One of the questions asked by your TPA during the annual census collection may be whether your participant contributions and loan payments were transmitted within the Department of Labor (DOL) safe harbor time frame.

2022 – An Ideal Time to Review Plan Design

February 7, 2022    92    92   

Each year, those in the retirement community collect, analyze and calculate data to ensure plan compliance with the laws that govern qualified retirement plans. The calendar of deadlines repeats each year, challenging plan sponsors and service providers to focus on the current plan compliance along with the myriad of changes that have come into effect in the last few years. 

SECURE Act Provisions for Long-Term Part-Time Employees

February 7, 2022    131    131   

Historically, 401(k) plans could exclude individuals who worked less than 1,000 hours in the plan year. However, in its effort to expand access to employer retirement plans, the Setting Every Community Up for Retirement Enhancement (SECURE) Act introduced the concept of a “long-term, part-time employee” (LTPT).

Navigating the Labyrinth of Required Minimum Distributions

February 7, 2022    87    87   

Since the passage of the Tax Reform Act of 1986, taxpayers have been required to withdraw previously untaxed dollars from their qualified plan and IRA accounts. 

Participant Distribution Fraud in the “New Normal”

November 10, 2021    205    205   

The Coronavirus pandemic, without a doubt, has changed the way we do business. It has also created some unanticipated vulnerabilities. For instance, since the start of the “new normal,” there has been an increase of cyberattacks on retirement plans and participant accounts through unauthorized distributions. How did this happen?

Form 5500 Filing Extension for FEMA Designated Disaster Areas

November 10, 2021    192    192   

On August 31st, 2021, the IRS issued guidance extending tax filing deadlines for Form 5500 in areas designated by the Federal Emergency Management Agency (FEMA) as qualifying for assistance due to Hurricane Ida and other recent natural disasters. This extension applies not only to Form 5500 filings but also to Form 8955-SSA.

Save More for Retirement in 2022

November 10, 2021    168    168   

On November 4, 2021, the IRS announced the Cost of Living Adjustments affecting the dollar limitations for retirement plans for 2022. In October, the Social Security Administration announced a benefit increase of 5.9%, the largest increase in nearly 40 years.

Looking to Maximize Savings? Cash Balance Could Be the Answer!

August 10, 2021    1376    1376   

So, you established a 401(k) plan for your company and have been contributing consistently for years. The plan has likely afforded your company significant tax savings and has allowed you to attract and retain quality employees.

Safe Harbor: A Cure For Your Testing Headaches

August 10, 2021    293    293   

A crucial requirement for 401(k) plans is that the plan must be designed so it does not unfairly favor highly compensated employees (HCEs) or key employees (such as owners) over non-highly compensated employees (NHCEs). To satisfy this requirement, the IRS requires that plans pass certain nondiscrimination tests each plan year.