Maria Hurd, CPA, RPA, Christopher Ciminera, CPA, QKA, and many members of our employee benefit plan audit team are highly sought after for speaking events. Here are a few upcoming speaking events that we thought you might be interested in attending. APRIL 19, 2021: Death, Taxes, and Retirement Plan Operational Failures – On April 19 from 2-2:45PM EST, Maria … Continued
Posted By Maria T. Hurd, CPA, RPA How Can a Valid Limited Scope Certification be Invalid? Just as certificates of authenticity for rare artwork have certified that reproductions were the real deal, a 103(a)(3)(C) certification, better known as a limited scope certification, could certify an investment value that has not been determined in accordance with Generally Accepted Accounting Principles (GAAP), … Continued
Posted By: Chris Ciminera, CPA, QKA A major benefit to employees who are participating in a qualified retirement plan is the deferral of taxes. Pre-tax deferrals, employer contributions, and the related earnings grow tax-free until the amounts are distributed from the plan. Unfortunately, when a participant takes a distribution upon retirement or an early distribution that is not rolled over, … Continued
Posted By Maria T. Hurd, CPA How Big Can a Retirement Plan Be and Still Qualify for the Small Plan Audit Exemption? “Define Large.” It is a question I often get from advisors hoping to get their clients out of a retirement plan audit. Until now the answer has been simple: 100 participants is the general rule, but if your … Continued
Posted By Chris Ciminera, CPA, QKA I am sure it feels like a cruel game of hide-and-seek for plan sponsors that are unable to find a participant or beneficiary to pay retirement benefits that are due. The administrative procedure seems cut and dry; however, an issue arises when there is old contact information, or the participant or beneficiary doesn’t cash … Continued
Posted By: Maria T. Hurd, CPA, RPA What if the Participant Already Spent the Overpayment from the Plan? Ineligible or excess distributions from qualified plans happen all the time. In our last 30 years of auditing retirement plans, our distribution tests have uncovered all the following ineligible or excess distributions: Hardship reason not met: A participant doesn’t … Continued
Posted By: Maria T. Hurd, CPA Taking a hardship distribution should not be, in itself, a hardship to a participant going through challenging times, nor should it be an administration hardship to the employer trying to help. Although obtaining documentation to substantiate a hardship is not, in itself, difficult, missing hardship backup is one of the most common operational errors … Continued
Posted By: Maria T. Hurd, CPA Transactions with Related Parties and Parties In Interest: What are the GAAP disclosure requirements? ERISA’s definition of a party in interest is broader than a related party as that term is defined by GAAP. Parties in interest include all entities and individuals that provide services to the plan; however, these entities may not necessarily … Continued
Posted By Maria Hurd, CPA The SECURE Act increased IRS Late Filing Penalties for Form 5500 by how much? How can I avoid them? IRS Penalties Tenfold. That’s how much the SECURE Act (the “Act”) increased the penalty for the late filing of a Form 5500 –TENFOLD! Before the Act, the IRS could assess a civil penalty of $25 for … Continued
Posted by Maria T. Hurd, CPA Distributing a Safe Harbor Match Plan Notice Slipped Through the Cracks. What is the Correction? The barrage of changes introduced by the SECURE Act, closely followed by the CARES Act, along with furloughs, remote work, and all the work-life changes of pandemic year 2020 may have resulted in administrative errors in plan operations, such … Continued