…– 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…
…– if “key employees” (owners and the most highly paid employees) accumulate more than 60 percent of plan assets, the plan is considered “top heavy,” and additional contributions to non-key employees must be made. The plan’s vesting schedule may also have to be accelerated. In…
…the end of the decade, assets under management exceeded $500 million. In 1982, the Savings Association Retirement Fund became known as the Financial Institutions Retirement Fund and the Savings Institutions Thrift Plan became known as the Financial Institutions Thrift Plan. By 1987, assets under management…
…assets and maintain personal data on participants, which can make them tempting targets for cyber-criminals. Plan fiduciaries have an obligation to ensure proper mitigation of cybersecurity risks. Key Items Responsibilities to manage cybersecurity risks Retirement account online basic rules to reduce the risk of fraud…
…provide an ACA notice to participants can cost a plan up to $1,899 per day. And the list goes on. Penalties for plan reporting and disclosure failures are considered “settlor” expenses and cannot be paid out of plan assets. That means, the plan sponsor is…
…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…
…the retirement plan—is a common oversight. For example, Company A purchased Company B in an asset sale and Company A did not take on Company B’s 401(k) plan. The person who had been identified as Company B’s Plan Administrator and signed the Forms 5500 no…
…owner or beneficiary for QCD purposes is a person who has attained age 70 ½ or older, and has assets in traditional IRAs, Roth IRAs, or “inactive” Simplified Employee Pension (SEP) IRAs or Savings Incentive Match Plans for Employees (SIMPLE) IRAs. Inactive means there are…
…plan SECURE 2.0 allows employers to offer “de minimis financial incentives, not paid for with plan assets, such as low-dollar gift cards, to boost employee participation in workplace retirement plans.” The “Grab Bag” Notice provides that: A financial incentive is considered de minimis “only if…