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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…

…maintained by the employer Must file a Form 5500 annually Voluntary employee deferrals Mandatory employer contributions (generally, 3% match or 2% nonelective) Immediate vesting for contribution types Additional information at IRS SIMPLE 401k facts Safe Harbor 401(k) No limit on number of employees Voluntary employee…

For decades—before the 401(k) plan came on the scene—defined benefit (DB) pension plans ruled the retirement plan world. If an employer offered a retirement plan, it was quite likely a DB plan. Certainly governmental and union plans were almost always DBs. And many private sector…

…question is “maybe.” Your client will want to discuss this question with his employer and tax advisor for a definitive answer. Generally, according to the instructions to IRS Form W-2, Wage and Tax Statement, an employer may, but is not required to, report non-Roth, after-tax…

…could be a critical notification deadline in the case of an excess deferral, depending on a plan’s terms and conditions. If a 401(k) plan participant makes salary deferrals to more than one plan of unrelated employers during the same tax year, it is possible to…

…in individual account plans like 401(k), 403(b) and governmental 457(b) plans under the following structure. Optional automatic enrollment At the employer’s discretion, automatic enrollment can apply with deferrals beginning at 3% and capped at $2,500 (or a lower amount at the employer’s discretion). The $2,500…

…middle ground between outsourcing everything and doing it all yourself. For example, some smaller employers might be quite good at onboarding new employees and may not need help with that. Or their payroll provider may offer some assistance by providing the employer with the information…

…must be invested in a qualified default investment alternative (QDIA) unless the participant elects otherwise. Participants can withdraw auto-deferrals made during a 90-day period after initial deferral. The provision applies to employers adopting a multiple-employer plan (MEP) after 12/29/2022, even if the MEP was established…

…an eligible employer sponsored plan at a new employer. Fiduciary/prohibited transaction issues Generally, the selection and monitoring of an automatic portability provider will be (as it is with the retention of any retirement plan service provider) a fiduciary act. The transfer by an automatic portability…