In response to the COVID-19 pandemic, Congress issued the CARES Act, which expands eligibility and alters the regulations regarding 401(k) loans. The CARES Act allows you to borrow 100% of your account balance up to $100,000 (less any previously outstanding loans), which is a significant increase from the $50,000 limit prior to the act. Currently, …
In July 2019, the AICPA issued the Statement on Auditing Standard (SAS) 136 – Forming an Opinion and Reporting on Financial Statements of Employee Benefit Plans subject to ERISA standards. The primary goal of the standard is to improve audit quality by making the auditor’s report clearer and easier to understand for the users of …
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 …
On October 27, 2016, the Internal Revenue Service (“IRS”) announced the cost-of-living adjustments (“COLA”) for the 2017 tax year. These COLA rates are used to adjust over 40 tax provisions from the standard deduction and personal exemption to retirement plan limits. Based on changes in the consumer price index, used by the IRS to determine …
A common misconception is that all 403(b) employee benefit plans are exempt from filing the Form 5500 and an annual plan audit. Over five years ago this was true, and these plans were exempt from the Employee Retirement Income Security Act of 1974 (ERISA). However, beginning in 2009, some 403(b) plans are now required to …
When an employee benefits plan such as a 401(k) plan reaches a certain size or qualifies under other requirements, the Department of Labor requires an audit to be performed. If you are selecting an audit firm for your employee benefits plan, you might consider asking the following questions: 1. How many employee benefit plan audits does …
As we enter January of every year, it is time to start thinking about personal income taxes. While this is not a favorite to many, there are many important tax reporting forms that individuals must be on the lookout for over the next coming months. One of these is Form 1099-R – Distributions from Pensions, …