What is a 401(k) plan census report?

A 401(k) plan census report is a document that compiles employee information on all employees who were paid during the plan year. The census will often provide details on an employee’s name, date of birth, social security number, date of hire and termination, gross compensation, hours worked, employee deferrals, matches, highly compensated employees (HCEs) and …

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What to do with 401k forfeitures

Most 401k plans include either employer match contributions or employer profit sharing contributions. These types of contributions may have a vesting schedule attached to them which is determined by the employer. A vesting schedule dictates how much of the employer contributions are owned by an employee based on their time with the company. This means …

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How to avoid common 401(k) plan administrative issues

401(k) plans are highly regulated and have many rules as found in the Employee Retirement Income Security Act (ERISA).  It can be difficult to keep your plan in line with ERISA regulations, but the following suggestions can help. Don’t miss: Defining compensation within a 401(k) plan ERISA requires that a 401(k) plan must operate according …

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Defining compensation within a 401(k) plan

A common mistake found in retirement plan audits is the incorrect usage of the plan’s definition of compensation. This can quickly lead to participants contributing too much or too little into their accounts. Mistakes should be corrected as soon as they are identified. This involves identifying (1) the pay codes that should or should not …

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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 …

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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 …

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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 …

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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 …

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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 …

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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 …

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