Auto Enrollment: Improving 401(k) Nondiscrimination Results

Has your company been having problems passing your 401(k) nondiscrimination tests? One thing you may consider as a fiduciary is discussing automatic enrollment with your Third-Party Administrator. You may be wondering if the extra costs of additional employer matching contributions plus costs of additional implementation and administration expenses are worth the trouble. However, considering the …

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Basics About the Voluntary Fiduciary Correction Program

The Voluntary Fiduciary Correction Program (VFCP) is a voluntary enforcement program that encourages the correction of possible violations of Title I of the Employee Retirement Income Security Act (ERISA). Anyone who may be liable for fiduciary violations under ERISA, including employee benefit plan sponsors, officials, and parties in interest, may voluntarily apply for relief from …

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Partial Plan Termination

If your company has had a significant employer-initiated reduction in workforce and sponsors a 401(k) plan, it is important to consider whether a “partial termination” of the retirement plan has occurred. When a partial termination has occurred, all participating employees who had a severance from employment during the period must be fully vested in their accrued …

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