Valuable Information on 401ks, Pensions, ESOPs, Form 5500 Preparation + More

Defining compensation within a 401(k) plan

A common mistake found in retirement plan audits is the incorrect usage of the plan’s definition of compensation. This can quickly lead to participants contributing too much or too little into their accounts. Mistakes should be corrected as soon as they are identified. This involves identifying (1) the pay codes that should or should not …

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Rollovers for employee benefit plans

If you have ever been curious about rollovers for an employee benefit plan, then you have come to the right place. The following provides a simple overview of rollovers. A rollover often refers to the transfer of money from one retirement plan to another without the burden of tax or penalties. Tax and or penalties …

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What to expect to be asked for in an employee benefit audit

If your company sponsors an employee benefit plan with 100 or more participants, an audit may be required (for more on when an audit is needed read the Henry+Horne blog Does your employee benefit plan need an audit). After it is determined that an audit is necessary and the audit is soon to begin, you …

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Mutual funds – a common investment for employee benefit plans

Most 401(k) plans offer their participants a variety of investments and most of these line ups include mutual funds. The risk associated with mutual funds range from conservative to aggressive. They are comprised of pools of money collected from investors that is then invested in a variety of securities (such as stocks, bonds or cash). …

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401(k) plan options for eligibility requirements

During the 401(k) plan design process, there are lots of things to consider. One of them is the eligibility requirements to participate in the plan. Who is allowed to participate in the plan? This can have a dramatic effect on the plan’s cost, ease of administration and perceived value to prospective employees. The eligibility requirements …

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Required minimum distributions during a pandemic

The IRS has recently issued Notice 2020-51 to help bring more clarity on how the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) impacts Required Minimum Distributions (“RMDs”) and those individuals who have taken RMDs in 2020. Congress passed the CARES Act on March 27, 2020 as a fiscal response to the COVID-19 pandemic. …

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CARES Act changes 401K loan rules

In response to the COVID-19 pandemic, Congress issued the CARES Act, which expands eligibility and alters the regulations regarding 401(k) loans. The CARES Act allows you to borrow 100% of your account balance up to $100,000 (less any previously outstanding loans), which is a significant increase from the $50,000 limit prior to the act. Currently, …

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Hardship amendment extension goes into effect

When the Bipartisan Budget Act of 2018 (BBA of 2018) was signed into law in February of 2018, sweeping changes to the process of obtaining hardship distributions accompanied it. These changes were not required to take effect until January 1, 2020. Don’t miss: Changes to hardship distribution rules While the BBA of 2018 initiated these …

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Navigating your 401(k) during a global pandemic

Investing in your 401(k) is an idea that is hammered into our brains at a young age. We are constantly reminded of it because setting aside an amount of money on a consistent basis for the future will make a significant difference when we approach retirement.  This simple task can turn out to be difficult …

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