Are Tips a Trap? - (Tips and Traps of Compensation - Part V)

Are Tips a Trap? – (Tips and Traps of Compensation – Part V)

Posted by Tyler Starr, CPA The most common error found during the audit of an employee benefit plan is the incorrect definition of compensation being used for contribution purposes. Whether the error is related to payroll coding issues or not fully understanding the plan provisions, plan compensation can be one of the biggest traps for plan sponsors, especially when employees … Continued

2020 Plan Limits – IRS Announces Increases on Benefits and Contributions Dollar Limitations

Posted by Saaib T. Uppal, CPA, QKA The IRS has announced cost-of-living adjustments that should be noted for retirement planning purposes. Below is a chart that outlines employee benefit plan limits for 2020: PLAN LIMITS RETIREMENT & SOCIAL SECURITY 2020 Limit 2019 Limit 2018 Limit Section 401(k), 403(b), 457(b) elective deferrals  $19,500  $19,000  $18,500 401(k) or 403(b) catch up contributions … Continued

401k Auditor - Large Plan 401k Auditor

Tips and Traps of Compensation: Part I

Posted by Maria T. Hurd, CPA, RPA UPDATED 7/11/19 Tips and Traps of Compensation: Part I – The Trouble with True-Ups or Lack of True-Ups When 401(k) and 403(b) plans provide that the match contribution is calculated annually, but administratively, the deposit is done on a payroll by payroll basis, it is important for the plan sponsor to understand and … Continued

Are Employer Matching Contributions for Student Loan Repayments Allowed?

Posted by Tyler Starr, CPA The IRS issued a private ruling on August 17, 2018, to allow an unnamed company to implement a new type of benefit for employees with student loan debt who were eligible to participate in its 401(k) plan. Prior to the private ruling, the company offered a 5% match contribution if employees contributed at least 2% … Continued