Withdrawal Liability Disclosures: Do They Turn Multiemployer Plans into Hotel California?
When I was a Teaching Assistant in College, group projects would inevitably result in complaints that some students were not pulling their weight.
457b Plans
Missing Participants: A Cruel Game of Hide-and-Seek – What to Do When a Participant Can’t Be Found?
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
“Give it BACK!!!”…”No!”…”OK, Keep It!”
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
How Has a New Auditing Standard Given Auditors More Flexibility in Agreed-Upon Procedures Engagements?
Posted by Tyler Starr, CPA The American Institute of Certified Public Accountants’ (AICPA) Auditing Standards Board (ASB) issued the Statement on Standards for Attestation Engagements (SSAE) No. 19, Agreed-Upon Procedures Engagements, in December 2019. SSAE 19 supersedes SSAE 18 AT-C section 215 of the same name and also amends certain provisions of SSAE 18 section 105, Concepts Common to All … Continued
How Do I Correct Late Salary Deferral Deposits?
Posted by Christopher J. Ciminera, CPA, QKA Update – April 29, 2020 On Wednesday, April 29, 2020 the Employee Benefits Security Administration (EBSA) also posted a Disaster Relief Notice 2020-01. In this notice, the EBSA provides relief to plan sponsors regarding the possibility of lags in deposits due to the recent COVID-19 issues which was addressed in my blog below. … Continued
Revisiting the Delinquent Filer Voluntary Compliance Program After the SECURE Act
Posted by Christopher J. Ciminera, CPA, QKA A major change that comes with the passage of the SECURE (Setting Every Community Up for Retirement Enhancement) Act is a substantial increase in the penalty amounts imposed by the Internal Revenue Service (IRS) for a retirement plan’s failure to file a return. The increased penalty is part of a provision designed to … Continued
What are the Administrative Procedure Changes Under the SECURE Act?
Posted by Tyler Starr, CPA In Are Retirement Savings More Secure under the SECURE Act?, we reviewed some notable changes included in Title I of the SECURE Act, which focused on expanding and preserving retirement savings. This follow-up blog will discuss other notable changes in the SECURE Act that mostly deal with changes to administrative provisions of plans. SECURE Act, … Continued
Are Retirement Savings More Secure under the SECURE Act?
Posted by Tyler Starr, CPA The passing of the Setting Every Community Up for Retirement Enhancement Act of 2019 (the SECURE Act) at the end of 2019 included significant changes impacting qualified retirement plans. In fact, the retirement plan industry has not seen such extensive changes in one act since the passing of the Pension Protection Act in 2006. President … Continued
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