January 1st is possibly the biggest enrollment period for retirement plans. After communicating to an employee that they are eligible for the plan, it’s important to be sure each employee completes the necessary forms. An enrollment form should be provided to each...
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Choosing the right retirement plan for your employees can be a challenge. From navigating contrasting rules and regulations pertaining to various types of retirement plans to determining which type of retirement plans best suit the unique needs of your employees, small businesses and large corporations alike have a plethora of important decisions to make when it comes to retirement plan selection. The experienced retirement plan team at Watkins Ross understands these challenges, regulations, and decisions. We expertly help you navigate your retirement plan options so you can choose the perfect retirement plan for your business’s specific needs. Explore our collection of retirement plan articles on the Watkins Ross blog to learn more about the various types of retirement plans available for business owners like you, including 401(k), 403(b), 457 plans, cash balance retirement plans, defined benefit retirement plans, ESOP, profit sharing, non-qualified retirement plans, and multi-employer retirement plans. Not finding the retirement plan information you need? Connect with us here to learn more about Watkins Ross retirement plan design and administration services.
Retirement Plan Procedures, Practices, and Internal Controls
With the New Year right around the corner, now is a good time to review your retirement plan’s policies, procedures, and internal controls. Having strong internal controls and documenting procedures is important to safeguarding retirement plan compliance and ensuring...
The Importance of Maintaining Retirement Beneficiary Forms
A new employee has a variety of forms to complete when hired. One of the most important forms new employees must complete is a beneficiary form for the company’s retirement benefit plans. It is essential the plan sponsor provide a beneficiary form to keep on file upon...
What Is a Top-Heavy Retirement Plan?
The IRS requires several annual nondiscrimination tests for defined contribution retirement plans, and the top-heavy test is one of those. A retirement plan is top-heavy when, as of the last day of the preceding plan year (the determination date), the total value of...
The New IRS Pre-Examination Retirement Plan Compliance Program
On June 3, 2022, the IRS announced a pilot pre-examination retirement plan compliance program beginning in June 2022. Under the pilot program, the IRS will notify a qualified retirement plan sponsor by letter that their retirement plan has been selected for an...
Maintaining Retirement Plan and Participant Records: Who’s Responsible and for How Long?
Retirement plan record retention rules are found in both the Department of Labor (“DOL”) Regulations and the Employee Retirement Income Security Act of 1974 (ERISA), plus there are statutes of limitation concerns in relation to retirement plan sponsor liability for...
IRS Update – Retirement Plan Documentation Deadline
In July 2020, the IRS announced employers with pre-approved defined contribution retirement plans (401(k), profit-sharing, and money purchase plans) will need to have their retirement plan documents rewritten within the next two years. The deadline to do so is July...
Processing Retirement Plan Participant Contributions
Department of Labor (DOL) rules require that employers deposit retirement plan participant deferrals as soon as administratively possible. For small retirement plans (under 100 participants), this is typically a timeline of 7 business days. Large retirement plans (100...
Retirement Plan Compensation Considerations
A common operational failure for retirement plans is when plan sponsors fail to apply the correct definition of compensation for retirement plan testing and benefit allocation purposes. Using an incorrect compensation total can impact the average deferral percentage...
Enrolling New Participants in Your Retirement Plan
The first step for enrolling new participants in your retirement plan is to determine their eligibility and entry date. Per your retirement plan document, determine the age and service requirements to enter the retirement plan. Once employees have met all...
What Are Controlled Groups and Controlled Group Rules?
What Are Controlled Groups and Controlled Group Rules?Controlled group rules exist to prevent business owners from subdividing their company into two separate companies - one employing highly compensated employees (HCEs) with a retirement plan and the other employing...
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
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...
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...
The SECURE Act and Part-Time Employees
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...
Review Your Retirement Plan
How often do you review your retirement plan? Plan errors can be costly and time-consuming, so the best way to avoid long-running errors is to periodically review the plan to ensure it’s operating in compliance.