The Power of Re-Enrollment

The Power of Re-Enrollment

Download The Action Doc Auto-enrollment and automatic contribution increases have proven to be popular and successful retirement plan design features that get more people to save for retirement. A little less known is “re-enrollment.” It’s another important tool we have to help encourage better participant outcomes. And it has the potential to benefit the participant, the plan sponsor, and you. Just as auto-enrollment sweeps newly eligible employees into the plan unless they opt out, re-enro...
Read More
The Final Rule on Hardship Distributions

The Final Rule on Hardship Distributions

On Sept. 23rd, the IRS published a final rule that relaxes several existing restrictions on participant hardship distributions from defined contribution plans.Some of these changes are mandatory, requiring employers to make the changes by Jan. 1st, 2020, while others are optional. Though the IRS had issued the proposed regulations in 2018, the final regulations clarify a few key provisions: The Loan-First Rule. The new rule removes the requirement that participants exhaust their ability to take ...
Read More
Safe Harbor 401(k) Plan Design

Safe Harbor 401(k) Plan Design

Being the bearer of bad news isn’t fun.When the third-party administration firm relays that aspects of the annual compliance testing have failed causing many of the company’s executives to receive taxable distributions from the plan, it isn’t a great day for the HR manager. The administrator explains that the regulations require testing to prevent highly paid employees from receiving disproportionately greater benefits than other employees. At a much-needed lunch that day, the ...
Read More
Why It Matters Before How It Works

Why It Matters Before How It Works

Download The Action DocSome business owners may come to you asking for information on a 401K or a cash balance plan. They may know of these from prior experience, or friendly advice, or they may have done their homework about different retirement plans. As retirement plan experts, we have many plan designs and options to offer depending on what we determine may be a best fit for your clients. The temptation is to quote them what they ask for. We think the better approach is to first invest a lit...
Read More
Encourage Greater Plan Participation with a QACA Safe Harbor Plan

Encourage Greater Plan Participation with a QACA Safe Harbor Plan

Download The Action DocYou already know that a 401(k) is a very popular retirement plan that allows employees to take advantage of tax deferrals on contributions and earnings while their money accumulates for retirement. To enjoy this special status, the IRS put in place non-discrimination rules to assure that plans benefit rank and file employees and not just a company’s owners and highly compensated employees. We know that the goal of many company owners is to maximize how much they can contr...
Read More
It's All in the Design...

It's All in the Design...

For many new Plan Sponsors, and even those savvy at running company retirement plans, understanding plan design can be daunting. Industry terminology, IRS code sections, and complicated illustrations can make understanding difficult.As a retirement plan service provider, we try to ensure that your plan design is the most optimal for your group of employees. Since employee demographics can change, it’s a good idea to understand the basics and review your design from time to time.Permitted D...
Read More
Complying with Safe Harbor Deadlines

Complying with Safe Harbor Deadlines

All 401(k) plan contributions have deposit deadlines, and it’s up to 401(k) fiduciaries to meet them. Yet, many are unclear about the deadlines applicable to their 401(k) plan. That confusion can easily lead to late contributions.Most of the confusion surrounds the deadline to deposit amounts withheld from employee wages, i.e., 401(k) pre-tax, 401(k) Roth, and/or participant loan repayments. Passed into law in 2004, the Department of Labor (DOL) set forth the rules to comply with the safe ...
Read More
Bucket List: Retirement

Bucket List: Retirement

The economy continues at its strong pace, keeping unemployment at its lowest rate in nearly 50 years. While this is usually good news, employee financial vulnerability is clouding this sunny forecast. The repercussions are impacting their ability to save for retirement.Millennials are the most stressed by their financial situations, followed by Gen X and Baby Boomers according to PWC’s 8th annual Employee Financial Wellness Survey released in June 2019. More than 80% of the employees surve...
Read More
Why Permitted Disparity Matters

Why Permitted Disparity Matters

When it comes to retirement plans, there are many ways to distribute a company’s profit sharing contribution. It may be as straightforward as a proportional, or “pro rata,” share to each eligible participant or it can be based on a formula that considers age or other factors.
Read More
Protect Your 401(k)

Protect Your 401(k)

Though some employers may not think so, the truth is that in today's world 401(k) plans are subject to fraudulent activity and that the often-overlooked retirement plan can be the perfect place for it to occur. For example, in late 2017, several news outlets reported a scheme targeting individual 401(k) accounts. The U.S. Attorney's office in Colorado had filed a lawsuit to recover up to $2 million in losses due to fraudulent distributions from retirement plan accounts. The lawsuit, file...
Read More
Page 1 of 7 FirstPrevious [1]2345 Last
Categories