In the administration of employee benefit plans (EBPs) occasional errors are inevitable. While proactivity, responsiveness and a robust internal control environment help to mitigate the negative effects of these errors, the U.S. Department of Labor (DOL) allows certain errors to be corrected through its Voluntary Fiduciary Correction Program (VFCP). Don’t miss: What is a 401(k) …
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 …
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 …
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 employee reduction. It is important to consider the impact this decision can have on the retirement plan. A reduction …
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. …
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 adjustments. 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 …
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 that could stem from retirement account withdrawals. A study by Health Affairs found that for the average …
For many employers, finding lost 401k plan 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 …
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 limited-scope audits instead of a normal audit? Don’t miss: 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 …