Participant Loans – IRS Requirements

If you participate in your Company’s 401k Plan, you are probably already aware that your Plan may offer an option for you to take out a loan from your 401k balance. These loans are tax free and typically require you to pay your loan back plus interest over a certain period of time. There are …

Keep Reading

Investment Policy – Why and What to Include?

An investment policy is created by an investment committee (those charged with making investment decisions for a retirement plan) to help establish and record its own policies in order to assist in future decision-making or to help maintain consistency of its policies by future committee members/trustees or to clarify expectations for prospective money managers who …

Keep Reading

Language Barriers of 401(k) Disclosure

I would like to address disclosure versus communication. They are two very different things, but they shouldn’t be. Have you ever tried to read ERISA or DOL regulations? The average person doesn’t read this stuff. Lawyers read it because it is in their language. Lawyers are the ones who write this stuff. Imagine a Company …

Keep Reading

Why a Quality Audit of Your Plan is so Important

The search is on for an accounting firm to perform the required audit of your employee benefit plan. In determining which proposal to accept, one must question the difference between the low end and the high end of the pricing spectrum. The intent of this blog is not to infer that everyone should hire the …

Keep Reading

DOL Guidance on Missing Participants

In a previously issued blog titled “Have lost Participants in your 401(k) Plan?”, the topic of missing participants was addressed prior to the Department of Labor (DOL) issuing any guidance on fiduciary responsibility of plan sponsors in that respect. The guidance issued by the DOL in Field Assistance Bulletin (FAB) No. 2014-01, outlines fiduciary duties …

Keep Reading

Understanding Your 403(b) Plan

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 …

Keep Reading

Fiduciary Duty Advice for 401(k) Plan Sponsors: The Small Things Matter

When 401(k) Plan Sponsors end up in trouble, it is often due to small things that were neglected or not given proper attention. Small mistakes can lead to big problems when it comes to the breaching of fiduciary duty. Below is a summary of mistakes made by Plan Sponsors that can lead to future problems …

Keep Reading

What You Need to Know When Filing Form 5500

What is Form 5500? Form 5500 is the annual tax return for your retirement plan that must be filed with the Employee Benefit Security Administration (EBSA), a division of the Department of Labor (DOL). It is required by the Employee Retirement Income Security Act of 1974 (ERISA) to ensure employee benefit plans are operated and …

Keep Reading

Determination Letters Will Not be Issued for 403(b) Plans

In April 2013, the IRS issued Revenue Procedure 2013-22 which provided much needed clarification regarding the fate of 403(b) determination letters. Prior to this, it was believed that the IRS would adopt a system of determination letters, similar to those issued for 401(k) plans. Revenue Procedure 2013-22 states that determination letters will not be issued …

Keep Reading

Plan Corrections Necessary? DOL Corrections Program

If your company offers an employee benefit plan that is subject to the Employee Retirement Income Security Act (“ERISA”), for example a 401(k) plan, it is important to remember that your Company is responsible for ensuring that the Plan and any plan transactions comply with the fiduciary standards ERISA has created. Even though a Plan …

Keep Reading