As previously discussed in K.I.S.S.: Keep it Simple and Straight Forward with Safe Harbor Plan Designs, the IRS requires that safe harbor 401(k) plans, prior to the beginning of each plan year, […]
In the world of qualified plans, an employee must be given credit for a ‘year of service’ for any ‘computation period’ […]
Most people are familiar with the significance of April 15th as the day we all pay our fair share to Uncle Sam […]
Occasionally, a new or existing tax client of our firm wants to set up a retirement plan. For a small employer with limited accounting and human resources […]
By Michael Mast, CPA – Underfunded defined benefit plans have always been a concern, but the Great Recession magnified the underfunded status of many plans.
By Christopher CIminera – The 408(b)(2) disclosure buzz has awakened many plan officials to the fact that different share classes can affect their plan investments’ returns.
Posted by Saaib Uppal In my blog post titled Mind Watching My Stuff for a Minute? I went over how to go about finding a participant who is unresponsive to communications from the plan fiduciary. As I mentioned, to terminate a plan, a sponsor must distribute all account balances. But, what if the plan sponsor seems to be searching for a ghost and the … Continued
Posted by Michelle J. Cross, CPA A court recently fined a plan sponsor over $35 million for breach of fiduciary trust by causing employees to pay excessive fees in their 401(k) accounts. You may be thinking to yourself, “Wow, they must have been stealing from the plan!” They weren’t. But they did do something wrong…they selected a more expensive mutual … Continued
“Can You Hear Me Now?” – Part II: Summary Plan Description and Summary of Material Modifications – Electronic Delivery
Posted by Christopher Ciminera In last week’s blog I drew a parallel between Verizon’s network coverage and communications of the retirement plan provisions through a Summary Plan Description (SPD) and Summary of Material Modifications (SMM). This week I will go into further detail on how to provide these communications electronically. The analogy to Verizon’s network coverage is still applicable since plan sponsors need to put … Continued
Posted by Chris Ciminera I think back to the cell phone commercial with the Verizon spokesman with his black glasses and hand to his head as a parallel for retirement plan communications. Creating a plan or changing provisions without employees knowing about it doesn’t create good “coverage” for plan sponsors. In fact, the Employee Retirement Income Security Act (ERISA) requires that plan sponsors … Continued