401(k) Employer Matching

Does your 401(K) Plan offer an Employer matching contribution to employees?  Are you a Plan administrator?  How comfortable are you with the Employer match made each year or each pay period?  Theoretically, there should be no mistakes in the Employer match because you use a third party payroll provider who has a systematic process for …

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Increase Participation in your 401(k) Plan

Is participation in your 401(k) plan still down? Some ways you can increase participation in your plan include identifying and overcoming the common objections and simplifying enrollment. Two of the most common objections for not participating that you will encounter as a plan administrator are that employees cannot afford to defer their income and that …

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Are Your 401(k) Participants on Track to Meet their Retirement Goals?

As a plan administrator, it is good practice to take a proactive approach and evaluate whether or not your participants are being properly educated on how they can stay on track to meet their retirement goals. A recent article on usnews.com (http://money.usnews.com/money/blogs/the-smarter-mutual-fund-investor/2010/11/16/5-mistakes-you-may-be-making-in-your-401k) discussed some common mistakes people make in their 401(k) plans that hinder their …

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Non-Exempt (Prohibited) Transactions & Financial Statement Disclosure

Has your 401(k) Plan recently been audited by the “Employee Benefits Security Administration” of the U.S. Department of Labor?  If yes, have they identified any Non-Exempt (prohibited) transactions? For detail on what constitutes a Non-Exempt (prohibited) transaction, please review “Instructions for Schedule G” Form 5500, Financial Transaction Schedules” of the Instructions for Form 5500 – …

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401(k) and 403(b) Plans to Disclose Fees Charged to Participants

If you’re like most people, it’s not easy to determine exactly how much you’re being charged for your employee benefit plan fees.  Some expenses are disclosed on your statement, but some are not.  Instead, they’re deducted from earnings, and only the net earnings amount is shown.  New rules issued by the DOL last week will …

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Importance of Declining Enrollment Form

Many employers that participate in 401(k) plans do a very good job at keeping paperwork for participants who enroll in the plan. Where deficiencies occur is when the participant does not wish to participate in the plan but does not provide any additional paperwork showing they have declined enrollment.  It is important that the employer …

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Selecting a 401k Auditor

As noted in April 6, 2010 post, “Do You Still Need a 401K Audit?” there are several factors to consider in determining whether or not your 401K Plan needs an audit.  After the decision has been determined that an audit will be required for your 401K Plan, the next big question for the Plan administrator …

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DOL Formal Notices of Rejection: What to Expect if You Receive One

Formal Notice of Rejection (NOR) letters were recently sent by the Department of Labor (DOL) to over 300 plan administrators for failing to attach an audit report to their 2008 Form 5500. Currently, these notices were sent to plans deemed to be large based on the size of the plan’s assets. A second round of …

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Fraud in a 401k Plan?

Some people think that 401k plans have little exposure to fraudulent activity.  The truth is, whenever there is an incentive, the opportunity, and the rationalization to commit fraud, then fraud should definitely be considered by your Company. The following risks, and mitigating recommendations, will be helpful to the following persons (but not limited to1): • Director …

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