Buy-Sell Agreement: Part II

Value is addressed in the Buy-Sell agreement. It can be a fixed price, a formula to determine value, or a process to determine value. A fixed price is perhaps the easiest to understand and the most at risk of rewarding one party at the expense of another. It may be a reasonable measure of value …

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New Auditing Requirements for 403(b) Plans

The 2009 Form 5500 has been revised, and it requires many previously unaudited 403(b) plans to be audited for the first time. Historically, there have been limited filing requirements for 403(b) plans. In fact, most 403(b) plans are often treated more as individual account arrangements than a formal plan. These changes made by the Department …

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Buy-Sell Agreement: Part I

Buy-Sell agreements can be an important part of your business, and should be well thought out. They can have legal, tax and valuation ramifications, so you should consult experts in each of these fields when drafting or modifying a Buy-Sell agreement. Buy-Sell agreements can be used for several purposes. The agreement can provide a market …

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Auto Enrollment: Improving 401(k) Nondiscrimination Results

Has your company been having problems passing your 401(k) nondiscrimination tests? One thing you may consider as a fiduciary is discussing automatic enrollment with your Third-Party Administrator. You may be wondering if the extra costs of additional employer matching contributions plus costs of additional implementation and administration expenses are worth the trouble. However, considering the …

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Basics About the Voluntary Fiduciary Correction Program

The Voluntary Fiduciary Correction Program (VFCP) is a voluntary enforcement program that encourages the correction of possible violations of Title I of the Employee Retirement Income Security Act (ERISA). Anyone who may be liable for fiduciary violations under ERISA, including employee benefit plan sponsors, officials, and parties in interest, may voluntarily apply for relief from …

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