…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…
…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…
…employer matching contributions to eligible employees when an employer miscalculates an employee’s compensation. The IRS urges plan sponsors to contact their plan administrator to ensure they have “adequate and sufficient” records about employment and payroll because, in many cases, the problem is caused by failing…
…consist of strictly employee contributions or a combination of employee and discretionary employer contributions. With catch-up contributions, the maximum annual contribution amount in a 401(k) with profit sharing is good. Consider a 65-year-old owner; in 2024, he could defer up to $30,500 plus make an…
…and IRS’s corrections programs, having these programs is ultimately beneficial. Both programs allow plan sponsors to fix compliance problems before a government entity identifies an issue and gets involved. And well-established correction methods give employers the peace of mind that they are following a course…
…responsible for overseeing the performance of service providers to the plan. So, not only do many employers not realize that they are a fiduciary to the plan, many don’t have the knowledge or experience to properly perform in this capacity. That’s why some expert TPAs…
…is the federal government’s latest economic stimulus package and the first under President Biden. Key Items Defined Benefit Single Employer Plan Funding Relief Defined Benefit Multiemployer Plan Funding Relief Impacts to Defined Contribution Plans Update on The Securing a Strong Retirement Act of 2020 (SSRA)…
…present an informed opinion, but a plan audit typically includes a review of numerous areas: Timely employer and employee contributions, comparing plan records with payroll records. Nondiscrimination testing results, confirming that any failures have been corrected. Compliance with distribution and loan program requirements. Plan expenses,…
…to help. Talk to us about how we can create effective programs to talk with employers and communicate more effectively about what these mean and how to take advantage of them. It’s a way to clearly separate yourself from your competition while establishing a key…
…any former employee who still has assets in the plan. In order to be considered an eligible participant, an individual does not have to contribute or receive employer contributions or otherwise have any activity in the plan in order to be included in the beginning…
…easily quantified than things like expertise and quality and the care of consulting that we deliver together. When cost is the primary driver, benchmarking is a pretty straightforward quantitative analysis. When you’re prospecting it’s an offensive strategy as you invite employers to look at potential…