Some business owners may come to you asking for information on a 401K or a cash balance plan. They may know of these from prior experience, or friendly advice, or they may have done their homework about different retirement plans. As retirement plan experts, we…
…IRA plan, an employer would not be precluded from establishing another plan (e.g., a cash balance plan) to further maximize contributions. Conclusion SECURE 2.0 provides relief for 2024 and later years for businesses that may wish to switch mid-year from a SIMPLE IRA plan to…
…– which determines if the account balances of key employees is greater than 60% of the total assets held by the plan. We know that the goal of many company owners is to maximize how much you can contribute each year to your retirement. So,…
…the account balances of key employees is greater than 60% of the total assets held by the plan. We know that the goal of many company owners is to maximize how much they can contribute each year to their retirement. So, to avoid uncertainty about…
…of the year count. That’s important because it can include former employees if they still have an account balance. This reality, plus the annual plan cost of carrying former employees, encourages many plan sponsors to force out former employees with small balances. The Department of…
…experts at running their retirement plans. And this may be particularly true with educators. As it is, there are so many challenges in primary, secondary, and higher education. More than ever, faculty, staff, and administrators must balance a host of concerns. While providing quality education,…
…long-term, part-time employees to make salary deferrals. Changes to the cash-out rules and to providing small incentives to increase participation. Employers are ultimately responsible for monitoring more and more changes to the retirement plan rules. Even for those service providers who deal with these rules…
…gift card. Whatever the incentive, they cannot be paid for with plan assets. The term “de minimis” is not defined; a suggested safe amount is $25. Clarification is needed on whether the amount should be treated as compensation. Plans can increase the cash out limit…
…casual use of a loan while still making it available for situations of real need. Loans are meant to be repaid, of course. Hardship withdrawals, by contrast, are not. They are allowable early withdrawals and absolutely reduce an employee’s retirement account balance. The use of…
…consultants and a key tool to have in your arsenal. With a Defined Contribution plan, it’s the employees who make many of the contributions and take on the investment risk. Their retirement benefit is their accumulated balance. With a Defined Benefit plan, the employer makes…
…matching and other employer contributions as Roth amounts Effective immediately, this feature permits participants to treat matching and other employer contributions as Roth contributions. This provision will be popular among higher-income participants with large balances in qualified arrangements pursuing a Roth strategy. Clearly, this provision…
Cybersecurity is an epic concern not only in the United States, but globally, as well. Today’s hackers are modern day Willie Suttons, targeting high-balanced financial accounts because, “That’s where the money is.” Due to the massive amount of assets in retirement plans, regulatory agencies are…