The American Rescue Plan of 2021: Pension Plan Benefits
The American Rescue Plan Act of 2021 (ARPA) was signed into law on March 11, 2021. It contains many provisions affecting pension plans.
What Business Deductions Can I Take In 2020? Set Up a Retirement Plan!
The SECURE Act permits businesses to adopt a qualified retirement plan by the due date of the employer’s tax return, including extensions.
SECURE Act: Plan Amendment Options
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
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
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
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
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
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
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
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
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
The 2020 Cost-Of-Living Adjustments affecting employee benefit plans include the annual limits for Social Security Taxable Wage Base.