Art of the Qualified Plan Audit

With the fiscal cliff negotiations behind us and impending federal tax reform legislation, Congress will now turn its attention to the debt ceiling and federal spending.

Think back to your early childhood when your parents would try to get you to open your mouth and take in a spoonful of food. “Choo! Choo! Here comes the train!”

Having a target in mind is always a helpful approach when attempting to guide oneself towards a particular finish line.

In our previous blog entry Moving the Goal Posts of Humaneness, we went over the news of the IRS no longer allowing their Letter-Forwarding Service for the use of […]

In one of our previous blogs Mind Watching My Stuff for a Minute?, we discussed how to go about finding a participant who is unresponsive to communications from the plan sponsor.

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 … 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 … Continued

Posted by Michael E. Mast, CPA The Employee Retirement Income Security Act (ERISA) section 412 requires plans to obtain an ERISA bond equal to the greater of $1,000 or 10% of the plan’s beginning of year plan assets, with a $500,000 maximum. In addition, if the plan assets include employer stock, then the maximum bond … Continued

Posted by Michael Mast, CPA Disclaimer: All blog posts are valid as of the date published. Voluntary Employee Benefit Association (VEBA) Trusts meet requirements to file both Form 5500 and Form 990. This requirement to file two returns made me question why other collectively-bargained benefit plans, such as the Pension, Annuity Funds, as well as … Continued

Posted by Maria T. Hurd, CPA Most employers think that the maximum amount every participant can contribute to their 401(k) plans as a deferral from their own salary for 2012 is $17,000 plus $5,500 as a catch-up contribution if they are 50 or over. Unfortunately, the maximum limit may be cut back for the employer’s … Continued