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The case of the solo 401(k) and the missing 5500s Plan Sponsor Scenario A business owner looking to set up a solo 401(k) plan went directly to a retirement plan provider without engaging an experienced financial advisor or a third party administrator (TPA). The individual wasn’t informed that they were supposed to file a Form...
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A safe harbor 401(k) plan can provide significant benefits for employers. Don’t miss out on this option; now is a great time to determine if it could be a good fit!    Benefits of Safe Harbor 401(k) Plans:  Owner deduction and savings of $19,500 from income ($26,000 if age 50), regardless of employee participation May...
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The SECURE Act was signed into law at the end of 2019. Among its many provisions was the extension of an important retirement plan deadline. The legislation allows employers the ability to adopt a new profit sharing or defined benefit plan (including a cash balance plan) after the end of the plan year. The deadline...
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The SECURE Act includes a new rule that will dramatically affect eligibility for 401(k) plans. Under this new rule, beginning in 2024, any eligible employee who works at least 500 hours in three consecutive years must be permitted to make 401(k) salary deferral contributions into the plan.   Long-term part-time employee eligibility changes Currently, a 401(k)...
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The hardship distribution rules for retirement plans have changed dramatically in recent years. The below FAQ addresses questions and answers based on the rules that are applicable now, in 2020.  What is a hardship distribution? A hardship distribution is an optional triggering event a plan sponsor can make available to employed participants. Plan sponsors can...
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Retirement plan documents are legal documents that outline a plan’s provisions and the regulatory requirements for the plan. Most qualified plans use what is known as a “preapproved” plan document. This is one the IRS has reviewed and approved for use. Alternatively, a plan can use an attorney-drafted document (known as an individually designed plan...
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New Electronic Disclosure Rules from the DOL The Department of Labor (DOL) released a final rule on electronic disclosure of retirement plan notices to plan participants on May 21, 2020. This new rule will allow disclosures to be delivered to certain employees via email or posted on a web site, as a default, rather than...
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SECURE Act New Plan Federal Tax Credit for Small Employers Effective in 2020, a federal tax credit is available for each of the first three years of a new retirement plan. There is a separate credit for 401(k) plans that add an eligible automatic contribution arrangement. These credits are available to employers with no more...
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The House of Representatives passed the Coronavirus, Aid, Relief and Economic Security (CARES) Act on March 27, 2020, two days after the Senate passed it in a unanimous vote. It is expected to be signed into law by the President momentarily. The $2 trillion dollar stimulus bill has far-reaching implications, including many items that directly...
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Workers who have been terminated or furloughed without pay during the COVID-19 crisis may have difficulty making ends meet. The most apparent source of relief for many is their 401(k) account. The government is helping people access their 401(k) accounts by providing legislation to make hardships and loans more accessible during this economic downturn. However,...
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