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

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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Impact of employee reduction on employee benefit plans

In the wake of the COVID-19 pandemic and the resulting economic uncertainty, employers are faced with decisions that could have significant impacts on their 401k retirement plans. A serious decision that employers face is a potential reduction in employees. It is important to consider the impact this decision can have on the retirement plan. A …

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Take CARES – Impact to employee benefit plans

In response to the impact of COVID-19 Congress placed into law the Coronavirus Aid, Relief and Economic Security Act or the “CARES Act”. What does this 883-page law mean for retirement plans and their participants?  The CARES Act includes provisions that expand the availability of retirement funds to those who have been impacted by COVID-19. …

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Retirement plan and IRA cost of living adjustments for 2020

The tax law places limits on the dollar amount of contributions to retirement plans and IRAs. IRC Section 415 requires the limits to be adjusted annually for cost-of-living increases. Don’t miss: Important information when changing plan administrators The below table shows a three-year comparison (starting in 2020) of certain retirement plan limits. Plan sponsors should …

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Locating lost 401k plan participants

For many employers, finding missing participants can seem an impossible task. Nevertheless, employers are required to take all reasonable actions to locate a missing participant. Employers have a fiduciary obligation under ERISA to locate or “make a reasonable effort” to find a missing participant of a terminated defined contribution plan. Failing to do so could …

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DOL limited-scope audits

When you have a business that requires an audit of its 401k or retirement plan, the DOL and the IRS both accept what is known as a “DOL limited-scope audit”. But what does this mean and why would you want a limited-scope audit instead of a normal audit? Don’t miss: Important information when changing plan …

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Important information when changing plan administrators

From time-to-time employers deem it necessary to change administrators for their employee benefit plan. This may affect the election choices of the employees. A Third-Party Administrator (TPA) is hired by an employer to deal with the behind the scenes events that occur while handling the retirement plan. They assist with the plan design and are …

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Fidelity Bonding requirements

The 401(k) bonding requirement, an uncommonly known requirement, is arguably one of the most important details regarding your plan. Dating back to 1974, the passage of the Employee Retirement Income Security Act of 1974 mandated that qualified plans under IRC section 401(k) be insured against losses caused by fraud or dishonesty. What is a Fidelity …

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