…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…
…the better, but they can also be costly. And it’s costing plan sponsors a bundle. Employee Benefits Security Administration (EBSA) unit restored over $1.4 billion to employee benefit plans, participants and beneficiaries in FY 2023*. A vast majority of the VFCP submissions were from oversights…
…guidance: Sponsors may but are not required to include in their plan any type of Roth contribution – employee elective, employer matching, or employer nonelective. The rules currently (pre-SECURE 2.0) applicable to employee elective Roth contributions also generally apply to the new Roth employer contributions….
…enactment, for the first 3 years of a new employer’s existence, or to employers with 10 or fewer employees. The “Grab Bag” Notice provides that: For purposes of the exception for plans established before the date of enactment of SECURE 2.0, a plan is considered…
…December 29, 2022. Certain employers are exempt, including governmental, church, and employers with fewer than 10 employees. Existing plans are This provision is effective for plan years beginning after December 31, 2024. 4. Expanded Coverage for Long-Term Part-Time Employees in 403(b) plans Employees who work…
…they must consider reining in costs. While responding to diverse individual needs, they must maintain academic rigor. And while attracting the best talent, they must also strive to retain employees with an attractive array of benefits. 403(b) plans have undergone tremendous change For the nonprofit…
Cash balance plans seem to be getting a lot of attention recently. And for good reason. They can provide substantial benefits—both immediate and long-term—to employers. Plus, they offer employees a clearer picture of their retirement benefits than traditional defined benefit plans. Here we will take…
…contributions on Form W-2 in Box 14. As you will see when you look at Form W-2, Box 14 serves as a “catch-all” for several miscellaneous types of plan contributions, including after-tax contributions, nonelective employer contributions made on behalf of an employee, required employee contributions…
…seriously considering a DB plan. But it’s time to take another look because, for smaller, more mature companies, DB plans can be a great vehicle to help employees prepare for retirement. You may be surprised to learn that they are actually a leading choice for…
…will be a popular feature for plan sponsors with employees carrying student loan debt. Employees receive matching contributions based on student loan payments as though the loan payments were plan deferrals. This feature will likely be popular among participants, and plan sponsors will likely use…
…selection of one of these needs to reflect the age and income ranges of the employee population as well as the sophistication of the plan fiduciaries and availability of investment managers. Employees must also always be able to opt out of the the QDIA and…
…that plans cost money: not only do employees place their own earnings into the plan, but often the employer also contributes. And certainly there are administrative costs. But those who sponsor retirement plans should also clearly understand that they must run their plans with the…