Blog

Introduction Rollover vs. Cash Distribution Mandatory Federal Tax Withholding 10% Premature Distribution Penalty Retirement and Termination Disability Benefits Death Benefits Required Minimum Distributions Hardship Distributions IRS Special Tax Notice and Reporting Summary 2017 IRS Annual Limits A 401(k) plan permits employees to defer a portion of their salaries on a pre-tax basis with the objective...Read More

Introduction Background Loan Requirements    Plan Document    Loan Policy    Maximum and Minimum Amounts    Number of Loans    Interest Rate    Amortization    Other Repayment Terms    Documentation Conclusion If you have a 401(k) plan, you’ve likely had participants ask about taking loans from their accounts. If you haven’t yet, it is only...Read More

Introduction What is a forfeiture? What isn’t a forfeiture? When do forfeitures occur?     When is a distribution "complete"?     What is a one-year break in service? How are forfeitures used? Can forfeitures be reinstated? When must forfeitures be used? What can I do to get this right? Sooner or later, almost all 401(k) plans...Read More

Introduction Minimum Age and Service Requirements Entry Date Effect of a Short Service Requirement Excluding Classes of Employees Excluding Part-Time Employees with a Fail Safe Provision Service Requirements for Employer Contributions Impact on ADP and ACP Tests Making Excluded Participants Whole Conclusion More and more businesses are hiring part-time, seasonal or temporary employees (collectively referred...Read More

Introduction Overview Pre-Participation Compensation Bonuses, Commissions and Overtime Taxable Fringe Benefits Reimbursements and Allowances Post-Severance Compensation Self-Employed Individuals Employees vs. Independent Contractors Conclusion IRS and Social Security Annual Limits When it comes to operating your retirement plan, determining the compensation that should be used for each participant can be really confusing. It seems like it...Read More