Articles
Electronic Delivery Could Save Billions
On May 21, 2020, the U.S. Department of Labor and the Employee Benefits Security Administration (EBSA) announced the publication of a final rule that will allow employers to communicate the required retirement plan disclosures and other plan information electronically. The rule finishes a 2018 DOL initiative aimed at reducing administrative burdens and costs associated with the delivery of retirement plan disclosures. EBSA projects that electronic delivery could save retirement plan sponsor…
IRS Issues Additional Pandemic Relief
On June 29, 2020, the IRS issued Notice 2020-52 in response to the COVID-19 pandemic providing welcome relief to plan sponsors who are considering suspending safe harbor contributions and also to those who may already have regardless of whether the employer is suffering an economic loss. The notice is significant in that it permits employers who sponsor 401(k) plans to reduce or suspend their safe harbor contributions and redirect those funds to other, more urgent needs. However…
Paying Fees from Plan Assets
COVID-19 is obviously causing financial stress and, when it comes to your clients’ qualified retirement plans, they may be looking for ways to reduce expenses. In this talk, we’ll detail the three options they have to use plan assets to pay some plan expenses as long...
How the CARES Act Applies to Your Retirement Plan
IMPORTANT HIGHLIGHTS The Coronavirus Aid, Relief and Economic Security (CARES) Act includes provisions that may apply to your retirement plan. Here are some important highlights to know first. The CARES ACT expands and relaxes rules on withdrawals, participant loans,...
Understanding the CARES Act
On Friday, March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), a massive relief bill for those suffering as a result of the Coronavirus pandemic, was signed into law. Besides the generalized financial relief afforded to individuals, as well as loans and other concessions for businesses, the bill includes the following provisions to help participants and employer sponsors of retirement…
How the SECURE Act is Changing Retirement
On December 20, 2019, the Setting Every Community Up for Retirement Enhancement (SECURE) Act was signed into law.The SECURE Act represents some of the most significant changes to retirement plan law since the passage of the Pension Protection Act of 2006, over thirteen years ago. The provisions of the Act are broad ranging and span many different effective dates.Financial Help for Plan SponsorsThough tax credits have been in place to help offset the cost of adopting a new retirement plan, the…
SECURE Act
As you know, the goal of our nation’s retirement system is to create more opportunities for American workers to save and to make it easier for employers to start and maintain benefit plans. With this in mind, Congress just passed, and the President signed, the SECURE...
The Power of Re-Enrollment
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...
Why It Matters Before How It Works
Some 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...
Encourage Greater Plan Participation with a QACA Safe Harbor Plan
You 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...
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...
Payroll, It’s More Than a Detail
Every retirement plan design begins with a study of a company’s payroll. It’s the essential information that drives thinking around how to optimize tax and savings potential for both business owners and their employees. Once a plan is installed, we rely on payroll...