Dispelling an Urban Legend: Participant Loans do NOT result in Double Taxation
Pre-tax contributions to a 401(k) or 403(b) plan are not taxed when made to the plan but are taxed when the participant receives a distribution of the contributions.
ERISA
Tipping The Scales From Prevention To Detection: Get ready for an IRS examination of your plan
When it comes to IRS audits, “an ounce of prevention is worth a pound of cure,” as Benjamin Franklin so wisely put it.
Understanding Independent Qualified Plan Auditor Opinions on Financial Statements
As a plan sponsor, you may know that, generally, if your plan covers 100 employees or more, your plan is considered a large plan and requires audited financial statements to be attached to the 5500 filing.
Internal Controls in a Retirement Plan
As auditors, we are required to review the controls in place at a plan sponsor of a retirement plan and its service providers to assess the risk of material misstatement resulting from control risk. In doing so, we constantly evaluate the adequacy of the control structure and recommend improvements to strengthen the processes to prevent errors.
Leveling Out ADP and ACP Tests with Refunds, QNECs/QMACs, Bottom-Up QNECs, or One-to-One Contributions
Discrimination. It’s a concept that most people don’t associate with retirement plan savings.
Will the Real Gross Wages Please Stand Up! (Gross Wages Aren’t On The W-2 Like You Thought They Were)
The use of the wrong definition of compensation is the most common error found in employee benefit plan audits, and it can be a very costly mistake to correct in accordance with the provisions of the IRS’ Employee Plan Compliance Resolution System (EPCRS).
What am I signing? – A quick guide to management representation letters
Plan administrators probably view the management representation letter as a document they must sign so they likely do so without reading it closely.
DOL Fiduciary Rule
On April 6, 2016, the U.S. Department of Labor (DOL) issued its final rule expanding the definition of investment advice fiduciary under the Employee Retirement Income Security Act of 1974 (ERISA) and modifying the complex list of prohibited transaction exemptions as it relates to the expanded definition.
Mid-Year Amendments to Safe Harbor Plans
It is not often that we can give our clients good news as a result of new guidance from the Internal Revenue Service, but thanks to Notice 2016-16, Mid-Year Changes to Safe Harbor Plans and Safe Harbor Notices, we have fantastic news.
Participant’s Elective Deferral Election Not Followed
One of the most common operational errors when administering retirement plans is the failure to implement a participant’s elective deferral election or change in percentage.