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402(g) Limit on Elective Deferrals – It’s Personal
Code section 402(g) limits the amount an individual can defer to a 401(k) plan during a calendar year, and it applies at an individual level, not at a plan level. An individual’s elective deferrals are the sum of all pretax and Roth deferrals to a 401(k) plan plus any...
To Bond, or Not to Bond, That Is the Question
To Bond or Not to Bond, That Is The QuestionMany public employer sponsors of pension and/or Other Post-Employment Benefit (OPEB) plans are considering issuing taxable Pension Obligation Bonds (POB) as a way of closing any funding gaps that might exist in their...
In-Service Distributions from Defined Benefit Plans
In a defined benefit plan, to receive in-service lump sum distributions at age 59 ½, the distribution must satisfy certain thresholds. Most lump sum in-service distributions for Highly Compensated Employees are contingent on the value of the plan
Financial Assistance to Troubled Multiemployer Pension Plans
On March 11, 2021, President Biden signed the American Rescue Plan Act of 2021 (ARPA), which includes much-needed relief for multiemployer plans. Many plans are already insolvent, with the PBGC paying the plan’s benefits at the lower PBGC guaranteed benefit amount
Best Practices for Missing Plan Participants
In January 2021, the Department of Labor (DOL) released new guidance on dealing with missing participants – former employees with a retirement account balance. For whatever reason, the cannot be located to deliver withdrawal paperwork or cash-out checks. The
Understanding Your Retirement Plan’s Force-out Provisions
Understanding Your Retirement Plan's Force-out ProvisionsAre you aware of your plan's force-out provisions? If not, now would be an excellent time to find out. What force-out limit does your plan contain? When you find out, send out the appropriate paperwork to...
Setting Olympic Sized Goals to Achieve Financial Success
Setting Olympic Sized Goals to Achieve Financial SuccessThe 2021 Olympics are finally here! After a year-long postponement due to the pandemic, the elite athletes in the world are coming together in Tokyo to participate in 28 different sports with the hopes of earning...
Getting 401(k) Participants Back in the Game in a Post Pandemic World
Getting 401(k) Participants Back in the Game in a Post Pandemic WorldThere is no doubt the coronavirus pandemic has impacted financial decisions many workers made during 2020. As the primary means of saving for retirement, 401(k) post pandemic balances were adversely...
Common Mistakes to Avoid in Your Employee Benefit Plan
Common Mistakes to Avoid in Your Employee Benefit PlanManaging employee benefit plans can be a challenge. Benefits can be complicated. If you make mistakes, it could mean costly fines or even criminal punishments. Here are common employee benefit plan mistakes and...
The American Rescue Plan of 2021: Pension Plan Benefits
The American Rescue Plan of 2021:Pension Plan BenefitsWill the American Rescue Plan Act of 2021 benefit your pension plan? The American Rescue Plan Act of 2021 (ARPA) became law on March 11, 2021. It contains many provisions affecting pension plans. How it will...
What Business Deductions Can I Take In 2020? Set Up a Retirement Plan!
What Business Deductions Can I Take in 2020? Set Up a Retirement Plan!Despite the pandemic, many small businesses saw profits in 2020. As they begin calculating their final tax liability, they now realize that their liability exceeds expectations. They ask themselves...
SECURE Act: Plan Amendment Options
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...