What is Form 5500? Form 5500 is the annual tax return for your retirement plan that must be filed with the Employee Benefit Security Administration (EBSA), a division of the Department of Labor (DOL). It is required by the Employee … read more
If your company offers an employee benefit plan that is subject to the Employee Retirement Income Security Act (“ERISA”), for example a 401(k) plan, it is important to remember that your Company is responsible for ensuring that the Plan and … read more
Lost participants are those participants who have balances in the plan (unclaimed benefits) or have been distributed an amount from the plan (uncashed benefit checks) and cannot be located. The participant either doesn’t know or forgot they have a balance … read more
IRS requirements are surprisingly vague regarding hardship distributions. In the absence of clear-cut rules, we sometimes see hardship distributions with very little or no supporting documentation. As a plan administrator you should not only comply with the IRS requirements, but … read more
When distributions are made from a retirement account the tax form issued is the 1099-R. A lot of information we want to know as auditors is presented on the form; gross distribution, taxable amount, tax withheld, etc. Box 7, however, … read more
Everybody has that thought. You hear news about another poor day in the stock market, which makes you reflect on how that is impacting your 401(k) retirement savings. You also receive your quarterly retirement account statement and see how it … read more
Many 401(k) plans permit participants to borrow from the plan, and it’s becoming a more and more common practice for participants to do so. The plan document must specify if loans are permitted. The majority of those loans are repaid … read more
One of the challenges that 401k sponsors deal with is lack of plan participation by eligible employees. An easy way for sponsors to encourage their eligible employees to participate is to educate them about tax benefits related to making 401k … read more
The IRS has various rules related to income tax withholding from 401k distributions. The most common rule is the minimum 20% that is required to be withheld from eligible rollover distributions. However other withholding requirements can result in either no … read more
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