A great third-party administrator (TPA) truly helps employers meet their goals – selecting the best plan design for their business, maximizing savings, minimizing taxes and liability, and more. Not all TPAs are the same; some stand in exemplary light. Increasingly complex regulations, escalating cybersecurity risks, and rising penalties for non-compliance provide ample reasoning to thoroughly...Read More
The SECURE (Setting Every Community Up for Retirement Enhancement) Act was signed into law in December 2019, bringing about several important changes to retirement plans. We’ll cover some of the biggest opportunities for advisors and business owners created by this legislation in the post below. Ch-Ch-Ch-Ch-Changes: Face the Opportunity While the SECURE Act is fairly...Read More
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...Read More
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...Read More
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...Read More
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)...Read More
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...Read More
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...Read More
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...Read More
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...Read More
