A beneficiary form determine who is entitled to the defined contribution retirement plan benefits upon the death of a participant. Is your form current?
Who Retains The Beneficiary Forms?
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Defined Benefit Plans
Defined benefit plans, also known as pensions, enhance employer retirement plan benefit packages by providing specific benefits to eligible participants upon their retirement date. Defined benefit plans are attractive to potential employees due to lifetime benefit payments, clear contribution rules, and low financial risk for non-contributing employees. Despite sounding straightforward, defined benefit plans carry a unique set of considerations and requirements for employers and plan administrators. Defined benefit plans almost always obtain funds entirely from employers, meaning employers carry the majority of investment risk, not plan beneficiaries. Defined benefit plans must prove financial stability on a yearly basis for plan funding and reporting purposes. Reduce your defined benefit plan risk by researching applicable defined benefit plan risk articles on the Watkins Ross blog. Our Watkins Ross retirement plan team has the experience and knowledge to design your defined benefit plans to fit your business’s goals; connect with us here to learn more.
2019 Defined Benefit Plan Compliance Calendar
If you are responsible for administering your company’s defined benefit plan, download our 2019 defined benefit plan compliance calendar.
2019 Government Shut Down Affects Lump Sum Payments from Defined Benefit Plans
How the 2019 government shut down affected lump sump payments from defined benefit pension plans due to the timing of the interest rates.
Is Your Business a Good Candidate for a Cash Balance Plan?
Cash balance plans allow high-income earners to save more towards retirement than a defined contribution plan. For example, in a defined contribution plan, the maximum annual additions are limited to $56,000 per year (as indexed). However, since the annual allocation...
2018 Census Request Reporting
The 2018 census request is a tool for plan administrators to report the employee data required for annual testing and other important business changes.
Sufficient Tax Withholding from Pension Payments
The IRS urges everyone (including retirees) to use their Withholding Calculator to determine if they have sufficient tax withholding from pension payments.
Cash Balance Plans Continue Outpacing 401(k) Plan Growth
The number of new cash balance plans adopted by employers increased 15% in 2016 (the most recent year that full 5500 data is available), compared to a 1% growth in 401(k) plans. Why have cash balance plans experienced so much growth? Several factors contributed to the...
Michigan Now Requires More Disclosure from Local Governments Regarding their Pension and Retiree Health Systems
Michigan Public Act 202 requires more disclosure from local governments regarding their pension and retiree health systems.
Attention all PBGC Premium Filers
The PBGC has a new mailing address! Make sure to update your files so that your filing and payment are sent to the correct address.
How to Submit a Federal Withholding Tax Deposit
Although you cannot mail a check for a federal withholding tax deposit, there are a few options to submit these payments to the IRS electronically.