Divorces can cause years of planning, saving and growth to be washed away in the blink of an eye, leaving you reevaluating the retirement that you had once planned. A qualified domestic relations order (QDRO) is a judgment, decree or order for a retirement plan to pay child support, alimony or marital property rights to …
The cost-of-living adjustments (COLA) for the 2018 tax year are out. These rates released by the IRS are used to adjust various tax provisions from the standard deduction and personal exemption to retirement plan limits. Here’s a comparison of the 2019 and 2018 retirement plan limits for 401(k), 403(b) and profit sharing plans: Why there are …
Many retirement plans require plan participants to obtain spousal consent prior to several events, including change of beneficiary, distributions and loans. Typically, the plans that most frequently require spousal consent for these changes are defined benefit plans, commonly known as pension plans. Defined contribution plans, such as IRAs or 401ks, may also require consent. Change …
Form 5500 is an annual return/report that employee benefit plans are required to file with the Department of Labor’s (DOL) Employee Benefit Security Administration (EBSA) division. Employee benefit plans subject to Employee Retirement Income Security’s Act (ERISA) standards are required to file Form 5500 on an annual basis. This report serves to satisfy necessary disclosures, …
When it comes to making decisions on your 401(k) contributions, there can be a lot of different factors that make it difficult to ensure you are making the right choices. One of those choices can be deciding whether to make pre-tax contributions into a traditional 401(k) or after-tax contributions to a Roth 401(k). Pre-tax contributions …
Many companies offer retirement plans, which is both rewarding and challenging. Managing a plan requires certain actions and involves certain responsibilities that make the person or entity performing them a fiduciary. Fiduciaries play an essential role and are subject to standards of conduct because they act on behalf of the participants. Their responsibilities include: Acting …
Receiving an employer match for your 401(k) is a great perk and encourages employees to participate in the 401(k) programs available. There are several different types and they can differ in timing, amount, restrictions and how they are calculated. Safe Harbor match Safe Harbor is a type of match in which employees are immediately 100% …
One type of distribution your 401(k) may allow for is a hardship distribution, and while the criteria can vary from plan to plan, most are generally similar. A hardship distribution is used to satisfy the immediate and heavy financial need of the participant, the participant’s spouse or the participant’s non-spouse, non-dependent beneficiary. Common examples of …
When employee benefit plan participants find themselves in tough financial positions, they often look for ways to relieve their financial burden. One of the options is taking out a loan from your 401(k) plan. However, is this a good idea? The answer – it depends on the situation. For most people, the idea of taking …
If you have contributed to a 401(k) at a former employer or think that you may have done so, you probably want to find your account. Maybe you switched jobs or moved and lost track of your funds. Not to worry. Your money is protected and should still be out there. Here are several steps …
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