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
3(16) fiduciary services are rapidly gaining popularity in the retirement industry. But why? What do these services entail? Are they worth the investment for plan sponsors? We’ll cover these topics in the following post. What are 3(16) fiduciary services? When a business owner sets up a retirement plan, they are held legally responsible for the...Read More
Which model is a better fit for you? Employers may choose to “bundle” multiple services for their retirement plans with one provider, or select two or more specialist service providers in an “unbundled” arrangement. In a bundled approach, the recordkeeper performs tasks typically reserved for the third-party administrator (TPA). Alternatively, an unbundled retirement plan combines...Read More
As a third party administrator, we work with payroll companies, both large and small, throughout the country. These companies help employers manage their payroll with great tools and resources. However, they are not retirement plan experts. So, before employers jump in with a payroll provider for retirement plan administration, it’s important to consider all the...Read More
If you live in California or Illinois, you might be very familiar with state-sponsored retirement plans. In fact, many other states have also implemented these programs and several others are contemplating jumping on the bandwagon. Why do these programs exist? Why are they growing in popularity? What other options do employers have for retirement plans?...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
