For anyone who has a child, they know sometimes the pain doesn’t end at the point of delivery. Don’t get me wrong. Children are a blessing, but with them come sleepless nights, diaper changes and yes, financial pressures. A study by Health Affairs found that for the average new mother with insurance who gave birth …
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 …
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 …
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 …
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 …
The PCC (Private Company Council) is a sub-organization created by and of the FASB. The PCC’s primary function is to evaluate current financial reporting standards set forth by GAAP and identify opportunities to streamline implementation and general reporting standards for private companies. The FASB and PCC recognize that certain standards are not as impactful for …
On November 14, 2018, the Internal Revenue Service (IRS) released proposed regulations that will essentially relax certain hardship distribution restrictions. Though the effective date of these provisions was January 1, 2019, changes were not required during 2018 or 2019. Once the final regulations are issued, certain changes are required, effective January 1, 2020. Below, we …
As the saying goes, some things get sweeter with time and your 401k is no different. Starting with the year that a retirement plan account owner reaches 70 ½, or, if later, the year in which they retire, they are required to withdraw a minimum amount of money from their account every year. This is …
When administering their 401(k) plan, one of the most common mistakes that employers make is allocating plan contributions to a participant account using the incorrect employee compensation. The most common occurrence is when an employer mistakenly excludes forms of compensation such as bonuses, overtime, or commissions that are defined as eligible compensation in the company’s …
Choosing a beneficiary for your 401k is a task that should not be taken lightly. Failing to name a beneficiary could cause a nightmare for your loved ones. It is important to consider who you want the beneficiary and to make sure it is updated whenever significant life events happen. Don’t miss: 5 tips to …