Correction Options for Retirement Plan Errors

Posted by Maria T. Hurd, CPA In a highly regulated industry with complicated rules that always have exceptions (except when the exception does not apply) it is inevitable that sooner or later a failure to follow the plan document will take place. Such operational errors can be corrected through the IRS Employee Plan Compliance Resolution System (EPCRS) in one of … Continued

What are the Available Safe Harbor Plan Formulas?

Posted By Maria T. Hurd, CPA Contrary to popular belief, company owners and highly compensated employees (HCEs) are not guaranteed the opportunity to contribute the maximum 401(k) contribution limit to their company’s retirement plan, even if the 401(k) deferral contributions represent their own money. That is because 401(k) plans are subject to nondiscrimination tests to ensure that a disproportionate share … Continued

COVID-19 Update: Unsaving for Retirement in Pandemic Times – Part II

Posted By Maria T. Hurd, CPA, RPA Our first blog about the CARES Act titled Unsaving for Retirement in Pandemic Times discussed the original definition of a Qualifying Individual eligible to take the additional Coronavirus-related loans and distributions. The original definition of a qualified individual applied if the participant in the plan experienced a financial impact, but it made no … Continued

Are Your Part Time Employees “In or Out” OR “In and Out?”

Posted by Maria T. Hurd, CPA, RPA For 403(b) plan eligibility determinations, the IRS says that “Once In, Always In” is much better than “In and Out,” so are your part-time employees “In or Out” or “In and Out”? Part-time workers and transient workers have always posed a challenge for plan sponsors trying to determine retirement plan eligibility. For 403(b) … Continued

The SECURE Act’s Long Term, Part-Time Employees Eligibility Rules: the Good, the Bad, and the Questions

Posted by Maria T. Hurd, CPA, RPA The SECURE Act’s provisions that encourage retirement savings and increase coverage and participation could reduce an estimated retirement savings shortfall of $3.8 trillion dollars by 3%, which does not sound like much percentage-wise, but it amounts to more than one hundred billion dollars: an unquestionably good result.  However, just as bad situations tend … Continued

Coronavirus-Related Distributions are NOT “Eligible Rollover Distributions” but They Can be Rolled Over

Posted By Maria T. Hurd, CPA, RPA Coronavirus-Related Distributions are NOT “Eligible Rollover Distributions,” but They Can be Rolled Over: What Withholding Rate Applies? To address the novel Coronavirus, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) has created a novel type of distribution from retirement plans: the Coronavirus-Related Distribution (“CRD”). It is a “rolloverable” distribution that … Continued

How do I get out of this employer contribution to my retirement plan?

Posted by Maria T. Hurd, CPA, RPA In pandemic times, employer contributions to retirement plans are not immune to cost-cutting initiatives, as corporate cash flows and liquidity dwindle. However, discontinuing discretionary contributions does not always eliminate all employer contribution requirements, and it is important for employers to anticipate and budget for any contributions that cannot be eliminated. Discretionary Profit Sharing, … Continued

COVID-19 Update: Unsaving for Retirement in Pandemic Times

Posted by Maria T. Hurd, CPA, RPA Every year, retirement plan audit season starts in early April, shortly after discrimination tests are complete and audit packages for the more straightforward plans become available. Human resources managers, payroll managers, and chief financial officers at the plan sponsor collaborate to provide the auditor with payroll, personnel data, and financial backup needed for … Continued

COVID-19 Update: New Rules for Hardship Distributions

Posted By Maria T. Hurd, CPA, RPA Our Benefit Plan Audit Team, as well as the entire BLS CPA Team, is continuously monitoring the rapidly changing landscape in an effort to provide you with updates related to legislative relief or changes that may affect you, your business, or your clients. As provisions or changes directly related to benefit plans occur, … Continued