Impact of the SECURE Act’s long term part-time 401(k) rules for restaurants

Offering a retirement plan program to your employee’s is essential to your overall benefits program. For restaurants there are some unique issues that you face due to typical high turnover, younger age demographic, lower wages and part-time status. It was pretty standard to be able to exclude these employee’s if they worked less than one …

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What is a 401(k) plan census report?

A 401(k) plan census report is a document that compiles employee information on all employees who were paid during the plan year. The census will often provide details on an employee’s name, date of birth, social security number, date of hire and termination, gross compensation, hours worked, employee deferrals, matches, highly compensated employees (HCEs) and …

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401k audit reminders and common errors for restaurants to avoid

In order to stay competitive in the restaurant industry, many companies offer 401(k)s to their employees as an incentive. Due to the nature of the industry, there are some important factors to consider in order to avoid errors or issues with the Department of Labor (DOL). Below are necessary considerations to help restaurants administer more …

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What to do with 401k forfeitures

Most 401k plans include either employer match contributions or employer profit sharing contributions. These types of contributions may have a vesting schedule attached to them which is determined by the employer. A vesting schedule dictates how much of the employer contributions are owned by an employee based on their time with the company. This means …

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Restaurant 401(k) compliance

It is that time of year again, 401(k) Plan audits are just around the corner. Although this can be a stressful time of year, there are things that you can do to help your Restaurant 401(k) compliance audit and your plan run smoother. The items noted below are particularly important for restaurants for a number …

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How to avoid common 401(k) plan administrative issues

401(k) plans are highly regulated and have many rules as found in the Employee Retirement Income Security Act (ERISA).  It can be difficult to keep your plan in line with ERISA regulations, but the following suggestions can help. Don’t miss: Defining compensation within a 401(k) plan ERISA requires that a 401(k) plan must operate according …

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Which 401(k) plan makes the most sense for your restaurant?

In order to remain competitive in the industry and retain quality employees, many restaurant companies choose to offer a 401(k) plan. While this is one of the greatest benefits you can offer your employees, it is important to consider the costs and other implications associated with this. Are we required to have an external audit …

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Lower Income in 2020? – Here is a Positive View

During this world pandemic, we have all faced new challenges and may have taken a pay cut or lost a source of income. For some this is viewed as being negative, however there may be a positive light for having lower income this year. Don’t miss: Proposed regulations could make reporting easier for small business …

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Additional Covid-19 Relief: Early Retirement Account Withdrawals

Have you been impacted financially due to the COVID-19 pandemic?  Part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act that was passed back in March allows eligible taxpayers to withdraw up to $100,000 from certain retirement plans with favorable tax treatment. According to a recent IRS news release, this relief includes IRAs, 401(k), …

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Why there are 401(k) contribution limits

It is essential to save a portion of the money you make to be able to retire at a reasonable age and have the time and money to carry out lifelong aspirations. You hear all the time to contribute to a 401(k) plan, but why are there contribution limits at only $18,000 a year? Plainly …

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