Timing Rules for SEPs and SIMPLE-IRAs Part I

For the most part, SEPs (Simplified Employee Pensions) and SIMPLE (Savings Incentive Match Plan for Employees)-IRAs live up to their billing as easy ways to set aside tax-favored retirement funds for employees and employers. However, contribution rules for these plans are not necessarily straight-forward. SEP plans: Business owners can set up and fund their SEP …

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Why Your Not-for-Profit Organization Needs a Gift Acceptance Policy

When I suggest that a not-for-profit organization should consider adopting a gift acceptance policy, my words are often met with some degree of surprise.  Why would a not-for-profit soliciting contributions consider turning any contributions down?  Well, there are lots of reasons – but the most important one it that a gift acceptance policy can protect …

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Where Should an Employer Look for Benefit Plan Fraud?

Employee benefit plans are often a side note in the day-to-day transactions of a business, lacking the constant oversight and review given to the operational activities.  Also, benefit plans involve the majority of the employees in a company in some way or another.  These and many other reasons make benefit plans susceptible to fraud.  As …

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Audit Requirements for Terminated Plan

As 401(k) auditors we are frequently asked “How long does a company have to have an audit for a plan that is terminated?”  Unfortunately as companies struggle during these tough economic times, plans are being terminated both as an effort to save costs or because the company has closed its doors.  As part of the …

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Remitting Contributions Timely

The Department of Labor regulations states that employee contributions should be remitted to the plan as of the earliest date on which such contributions can reasonably be segregated from the employer’s general assets, but no later than the 15th business day after the end of the month from the date on which such amounts are …

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Thinking of Terminating Your 403(b) Plan?

The IRS provided some additional guidance of considerations when terminating a 403(b) plan in their Spring 2011 Edition of Retirement News for Employers.  It accompanies their Revenue Ruling 2011-7, which provides examples of how to terminate a 403(b) retirement plan funded in various ways and discusses when terminated plan distributions may be taxable.  You can …

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401(k) Abuses

As a fiduciary to a 401(k) plan or even as a participant in your company’s 401(k) plan, there are some warning signs you can watch for when it comes to how the Company is handling their 401(k) fiduciary responsibilities including contributions.  The Department of Labor has seen many instances of fraud within 401(k) plans including …

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Footnote Disclosures

Another year end has passed and now you are probably compiling and sending the 401(k) files to your third party administrator for them to complete their compliance testing, and other plan financial reports.  Many of these documents will then be requested by your 401(k) plan auditor.  Additionally your auditor will be requesting other Plan documents …

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Consider Giving Your 401(k) Plan a Mid-year Check

As we’re now into the second half of 2010, I thought I’d share some advice I read recently in Sunday newspaper.  Charles Schwab is encouraging individuals to perform a mid-year review of their 401(k) investments through the following simple processes: • Rebalance – Rebalancing means adjusting the allocations to the funds in your account back to …

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