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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A Few Do’s and Don’ts for Benefit Plan Administrators

DO – educate your employees DON’T – try to give investing advice DO – have a trusted advisor, whether this is your TPA or an investment advisor. DON’T – rely exclusively on your TPA or investment advisor. DO – make sure your providers continue to “pass muster” (read their SAS 70 audit reports) DON’T – …

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Determination, Opinion, or Advisory Letters for Retirement Plans

The IRS issues favorable letters for various types of plans that meet the requirements of the Code.  The type of letter a Plan needs to obtain depends on the structure of the Plan.  You may have retirement plans that have been individually designed plans which are drafted to meet particular needs of the employer or …

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Have You Filed Your Form 5500?

How to file The July 31st filing deadline has come and gone. Did you file an extension? If you’re not sure, check with your TPA.  We are just one month away from the extended filing deadline, October 15th. Have you filed yet? Beginning January 2010, all Form 5500’s are required to be submitted online through …

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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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Is an ESOP Right for You?

An employee stock ownership plan (ESOP) is a qualified retirement plan that invests primarily in employer stock.  Let’s look at a few of the pros and cons of an ESOP. Pros Contributions to an ESOP are expenses for the contributing corporation for tax purposes. ESOP companies are less likely to be disposed of by sale, …

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What Does One Look for When Reviewing A SAS 70 Report?

When one receives a third party administrator’s SAS 70 report, there are a few things he or she should know about the information that is being provided to them in order to gain the maximum benefit from reviewing the report. There are two types of service auditor’s reports. The two types of reports provided in …

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The Importance of Monitoring Your TPA

Oftentimes during a 401(k) plan audit, the employer will respond to various questions about their plan with the answer “Our TPA handles all of that for us.” Indeed it is very common for plan sponsors to hire third-party administrators (TPAs) to manage some of the plan’s day-to-day operations. While there is much to be gained …

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Selecting Third Party Administrators

The act of hiring a third party administrator (“TPA”) is one of the responsibilities of a Plan Sponsor. One of the first steps in this hiring process is to sit down with your Plan Committee and determine what exactly your needs are in a TPA. Does your Company have specific situations that will need to …

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