Rollovers for employee benefit plans

If you have ever been curious about rollovers for an employee benefit plan, then you have come to the right place. The following provides a simple overview of rollovers. A rollover often refers to the transfer of money from one retirement plan to another without the burden of tax or penalties. Tax and or penalties …

Keep Reading

Retirement plan prohibited transactions – timely remittances

There are numerous types of prohibited transactions. Prohibited transactions are defined as certain transactions between a retirement plan and a disqualified person (broadly a person with some involvement with the retirement plan) that would cause the plan/plan sponsor to be in violation of Employee Retirement Income Security Act of 1974 (ERISA). One type of prohibited …

Keep Reading

401(k): Simple steps to invest in your future

Everybody always hears how they need to invest in their 401(k) as soon as they start working. Other than that initial advice, further guidance usually is not provided. Investing in a 401(k) is undoubtedly good advice, but investing in a 401(k) (or anything for that matter) should be a much different experience for someone just …

Keep Reading

Alternative investments help diversify employee benefit plans

Alternative investments are generally defined as investments that do not have a readily determinable fair value. This means this type of investment is not listed on a national exchange, and quoted market prices are not published in financial publications. These investments also do not face the restrictions or regulations that a typical investment, such as …

Keep Reading

IRS releases 2017 retirement plan limits

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 …

Keep Reading

Importance of Minutes as Evidence of Corporate Governance

Corporate governance is how a company polices itself and employees. It is intended to increase the accountability of the company, serve as a preventative measure, and help build transparency and trust. Corporate governance as it relates to plan administrators involves meeting your fiduciary responsibilities. Under the Employee Retirement Income Savings Act (ERISA), meeting your fiduciary …

Keep Reading

An Easier, Cheaper 60 Day Rollover Waiver

The IRS has had a major change of heart that is good for taxpayers. They recently issued Revenue Procedure 2016-47 which established a “self-certification” procedure enabling a taxpayer to complete a retirement plan rollover (despite missing the 60-day deadline) by certifying to the administrator of the recipient plan or IRA that the deadline was missed …

Keep Reading

Hardship Distributions

There may be a point in your life when you have an event that requires some cash. If you do not have that cash on hand, you may be forced to look into other options such as selling assets. Another option could be a hardship distribution from your retirement plan. A hardship distribution is when …

Keep Reading

Plan Terminations and Partial Terminations

Employers are allowed to terminate 401K benefit plans offered to employees for a variety of reasons. Employers are not required by law to provide retirement savings plans, and can terminate them as a part of a bankruptcy or merger, in order to switch to another type of plan, or voluntarily terminate the plan. According to …

Keep Reading

Retirement Plan Loan Alternative

Many retirement plan participants may already know about the option to take out a loan against their retirement account. What you may not know about is the option to take out a hardship (though, all plans may not offer the option). A hardship, as defined by the Internal Revenue Service (“IRS”), “must be made on …

Keep Reading