Watkins Ross Team - Watkins Ross

SECURE Act: Plan Amendment Options

Dec 14, 2020 | 401(k) Plans

The SECURE Act was signed into law on December 20, 2019. Your plan will require an amendment prior to the end of your 2022 plan year. Below are provisions that you will be able to elect in the plan amendment: Qualified Birth or Adoption Distribution (“QBAD”): A...

The SECURE Act and Part-Time Employees

Nov 19, 2020 | 401(k) Plans, Retirement Plans

If your plan requires employees to work 1,000 hours in a 12-month period to become eligible, you’ll soon need to start watching hours more closely. Having this 1,000-hour rule generally excludes those employees who work part-time, seasonal or temporary. ...

401(k) Retirement Plan Audit

Sep 10, 2020 | 401(k) Plans

Why does my 401(k) retirement plan need an audit? The 401(k) plan audit is mandated by the Employee Retirement Income Security Act (ERISA) and is intended to make sure a plan is being run correctly. The audit seeks to; (1) review 401(k)...

It is Time Again to Rewrite Your Defined Contributions Plans

Sep 4, 2020 | 401(k) Plans

IRS has recently announced that employers with pre-approved defined contribution plans (401(k), profit sharing and money purchase) will need to have their plan documents rewritten within the next two years. The deadline to do so is July 31, 2022. IRS goes through this...

CARES Act – Suspension of Loan Payment Provision

Aug 17, 2020 | 401(k) Plans

If adopted by the plan, this applies to all qualified employees still working as well as qualified furloughed employees and those on a temporary leave of absence. Loan payments due between March 27, 2020 and December 31, 2020 may be delayed for 1 year and extends the...

Internal Revenue Service Provides Temporary Relief and Other Guidance on Mid-Year Reductions of Safe Harbor Contributions to 401(k) Plans due to COVID-19

Aug 10, 2020 | 401(k) Plans, 403(b) Plans

On June 29, 2020, the Internal Revenue Service (the “IRS”) issued Notice 2020-52 that provides temporarily relief to plan sponsors that amend their safe harbor Section 401(k) or 401(m) plans (“Safe Harbor Plans”) mid-year to reduce or suspend employer safe harbor...

New Guidance for the Definition of a Qualified Individual

Jul 29, 2020 | 401(k) Plans

If your plan elected any of the CARES Act provisions to allow for coronavirus-related distributions or the expanded loan provisions, there has been a change to who may be considered a “qualified individual”. Participants defined as a qualified individual include:...

Required Minimum Distribution (RMD) Law Changes to the SECURE Act and the CARES Act

Apr 27, 2020 | Latest News

The SECURE Act was recently passed effective 1-1-2020 and, since then, there has been a lot of communication regarding the passage of the CARES Act due to Covid19. Both of these acts affect how RMD’s are to be processed in 2020, 2021 and onward. The following is a...

Impacts of the SECURE Act on Defined Benefit Plans

Mar 24, 2020 | Defined Benefit Plans

The market drop of December 2018 seems like ages ago, considering recent market volatility, Coronavirus, and the missing March Madness. However, the December 2018 drop did result in lower AFTAPs for many calendar-year plans. Unless your plan’s AFTAP has been certified...

2020 Plan Limits Released

Nov 7, 2019 | 401(k) Plans, 403(b) Plans, 457 Plans, Defined Benefit Plans, Employee Stock Ownership Plans, Profit Sharing Plans

The 2020 Cost-Of-Living Adjustments affecting employee benefit plans include the annual limits for Social Security Taxable Wage Base.

Cash Balance Plans – Pitfalls of Using an Investment Rate of Return as the Plan’s Interest Crediting Rate

Oct 28, 2019 | Cash Balance Plans

There are a number of potential issues a plan sponsor may face if they use the investment rate of return as the plan’s interest crediting rate.

GASB Discount Rate Calculation – A Proposal For A Different Approach

Sep 4, 2019 | Other Post-Employment Benefits

You are tasked with determining an appropriate discount rate for determining the Net OPEB liability under the Governmental Accounting Standards Board Statement (GASB) Nos. 74/75 for a closed, underfunded retiree healthcare plan whose plan sponsor plans to make minimal...