The LTPTE rules can create significant compliance challenges for plan sponsors and service providers who are unaware of the scope and implications of these requirements. This presentation highlights the nuances of these rules and how they impact eligibility, vesting, compliance testing, audits and Form 5500…
…Pentegra, we frequently identify compliance issues early in our client onboarding process—and what we see tends to mirror broader industry trends. For retirement plan advisors, understanding these recurring pain points and the various correction programs used to resolve them is an essential value-add for your…
…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…
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…
…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…
Understanding how forfeitures work in retirement plans When we talk about 401k type retirement plans we sometimes focus on the contributions made by employees that are ALWAYS immediately vested. In other words, it’s THEIR money and they can always withdraw it without forfeiting ANY-…
This is Eric Wietsma, President and CEO of Pentegra. Starting with this post, I’ll be writing a monthly blog that explores retirement plan trends, legislative and regulatory developments, and challenges and opportunities for plan sponsors and advisors. As we move into 2025 and experience a…
…be educated consumers of 3(16) fiduciary services. Running a qualified retirement plan for employees is like running a business for clients. Just as with a business, the administrative responsibilities and liabilities of operating a plan are significant. The Department of Labor (DOL) views all business…
…101, “Expanding automatic enrollment in retirement plans,” of the newly enacted SECURE Act 2.0 of 2022 is intended to build on that idea. Beginning with the 2025 plan year, newly established 401(k) and 403(b) plans must automatically enroll employees in a certain type of eligible…