Who is the PCC and what do they do?

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 …

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Changes to hardship distribution rules

On November 14, 2018, the Internal Revenue Service (IRS) released proposed regulations that will essentially relax certain hardship distribution rules. 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 …

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Required Minimum Distributions: It pays to be older

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 …

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What employers need to know about 401(k) compensation

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 …

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Choosing a beneficiary

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 …

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ESOP case update

Last year I wrote an article that outlined several cases involving the Department of Labor and ESOP trustees. There have been some recent updates to these cases which again do not favor the trustees. Brundle v. Wilmington Trust In this case, Wilmington Trust (WT) was hired as an independent third-party trustee for a potential purchase …

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5 tips to avoid common audit prep mistakes

Generally, if your company has 100 or more active participants, The Employee Retirements Income Security Act of 1974 (ERISA) requires an annual audit of plan financial statements. Whether this is your first plan audit or have endured plan audits for years, being prepared and gathering all the necessary documents and reports for your auditors can …

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What is ACP & ADP Testing?

When you have a 401(k) plan it can get a little overwhelming at times, especially when you start to worry about passing all the non-discrimination tests. These tests ensure a plan does not favor highly compensated employees (HCE) over non-highly compensated employees (NHCE) and mandates that corrections be made if one of these tests are …

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Timely remittances: what exactly does “timely” mean?

In recent years, the timely remittances have become quite the hot topic with the Department of Labor (DOL). The guidelines say that employers are required to remit employee deferrals to the plan no later than the 15th business day of the month following the payroll date. The DOL has not provided a safe harbor for …

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Nonprofit accounting: what’s the definition of a collection?

What is a “collection” in accounting terms? The FASB recognized that there were some conflicting definitions out there and issued a new ASU to get it straightened out. The new definition of collection is: Works of art, historical treasures or similar assets that meet all of the following criteria: (a) they are held for public …

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