…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…
…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…
…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…
…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…
…deemed to have a partial plan termination. The participants affected by the partial plan termination must become 100 percent vested in their account balances upon termination. Plan sponsors should monitor their companies’ turnover rates and amendment activities to be aware of potential partial plan terminations….
…or more participants with account balances at the start of the year) processing distributions and loan requests The PPP may also select other parties, such as investment advisors and accountants, to provide essential services to the plan. Because the PPP reduces the administrative burdens for…
…that the DOL meets this rule is to require plan administrators to submit an annual report detailing various aspects of plan operations, including financial data. Plans with 100 or more participants with account balances at the start of the plan year must submit an audit…