Do you or your clients have a SIMPLE IRA but could benefit from establishing a 401(k) plan? It’s not too late to make the change for 2018.
Switch From Offering a Simple IRA to a 401(k) Plan
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Defined Contribution Categories
A Defined Contribution plan is a retirement plan in which employees contribute a fixed amount or percentage of their compensation to an individual account under the plan. Contributions are invested on the employee’s behalf and they will ultimately receive the balance in their accounts upon retirement. Examples of defined contribution plans include 401(k) plans, 403(b) plans, employee stock ownership plans, and profit-sharing plans. For-profit companies can offer a 401(k) plan to help their employees save for their future by giving them the opportunity to defer pre-tax or after-tax dollars via payroll deduction into their account and select from a diversified investment menu. 403(b) plans provide retirement benefits for employees of public school districts, hospital groups, or 501(c)(3) organizations in these non-profit business sectors. An employee stock ownership plan (ESOP) is an employee benefit plan that gives workers ownership interest in the company; this interest takes the form of shares of stock. Profit-sharing plans are a way for a company to share profits with its workers and align the financial well-being of workers with the company’s success. 457 plans cover retirement benefits for state and local government employees and some non-profit businesses. There are benefits to Employers for sponsoring retirement plans; research applicable defined contribution articles on the Watkins Ross blog. Our Watkins Ross retirement team has the experience and knowledge to help you design a plan to meet your business goals; connect with us here to learn more.
Safe Harbor Hardship Withdrawal Guidelines
The IRS requires Plan Sponsors to adhere to specific safe harbor hardship withdrawal guidelines for the distribution to take place.
401(k) Plan Eligibility Requirements for Summer Help
RMDs for Missing Participants in Defined Contribution Plans
Minimum distributions are required for certain participants age 70½. How do you handle RMDs for missing participants in defined contribution plans?
Salary Deferral Limits in Defined Contribution Plans
The 2018 contribution limit for salary deferrals is $18,500 and includes both pre-tax and after-tax Roth deferrals. This limit is aggregated across plans.
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.
Why an Unbundled TPA is Better for a Defined Contribution Plan
Having one provider might seem like an effective and cost-saving solution, but having an unbundled TPA is better for several reasons.
Defined Contribution Plan Termination Procedure
There are various reasons a company decides to terminate their defined contribution retirement plan, but specific steps must be followed.
Changes To The 402(f) Special Tax Notice
The 402(f) Special Tax Notice was revised as a result of the tax reform legislation known as the “Tax Cuts and Jobs Act.”
Protect Your Qualified Plan From RMD Failures
Qualified retirement plans are subject to Required Minimum Distribution (RMD) rules. It’s important to protect your qualified plan from RMD failures.