ERISA Violations – Litigation Happens

It’s that time of year again when employee benefit plan audits are gearing up so it’s also a good time for a reminder regarding the importance of ERISA compliance. Plan sponsors who have good oversight over their plans and have annual audits may tend to not keep apprised of legal proceedings involving benefit plans. Some …

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Common 403(b) Plan Mistakes

The IRS issued the following listing of recurring mistakes noted in 403(b) plan audits: 1. Failure to be a qualified employer – Only public schools and certain tax-exempt charitable organizations qualify. 2. Failure to properly apply universal availability –This occurs when eligible employees are excluded from participation. 3. Failure to limit employee elective deferrals – The general limit …

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Is an ESOP Right for You?

An employee stock ownership plan (ESOP) is a qualified retirement plan that invests primarily in employer stock.  Let’s look at a few of the pros and cons of an ESOP. Pros Contributions to an ESOP are expenses for the contributing corporation for tax purposes. ESOP companies are less likely to be disposed of by sale, …

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