The Paradox of Participant Loans in Default: A Taxable Distribution of a Loan Balance Still Considered to Remain Outstanding
Keeping two sets of books often means that someone is hiding something from the taxing authorities.
Tax Compliance
Dispelling an Urban Legend: Participant Loans do NOT result in Double Taxation
Pre-tax contributions to a 401(k) or 403(b) plan are not taxed when made to the plan but are taxed when the participant receives a distribution of the contributions.
Accounting Treatment of Refund of Excess Contributions
There is a popular philosophical question that asks if a tree falls in a forest, and no one is around to hear it, does it make a sound?
Leveling Out ADP and ACP Tests with Refunds, QNECs/QMACs, Bottom-Up QNECs, or One-to-One Contributions
Discrimination. It’s a concept that most people don’t associate with retirement plan savings.
Will the Real Gross Wages Please Stand Up! (Gross Wages Aren’t On The W-2 Like You Thought They Were)
The use of the wrong definition of compensation is the most common error found in employee benefit plan audits, and it can be a very costly mistake to correct in accordance with the provisions of the IRS’ Employee Plan Compliance Resolution System (EPCRS).
Highly Compensated Employee Identification
In retirement plan administration, it is sometimes necessary to use prior year data to make certain determinations.
Department of Labor Emphasizes the Importance of Selecting a Quality Auditor
The Department of Labor just sent a letter to plan administrators emphasizing the importance of selecting a quality auditor.
The Voluntary Fiduciary Correction Program – How to File an Application
In my previous blog, “The Voluntary Fiduciary Correction Program – Overview”, I discussed the Voluntary Fiduciary Correction Program (VFCP).
The Voluntary Fiduciary Correction Program – Overview
By filing through the VFCP, a plan sponsor will receive a no-action letter from the EBSA indicating to the plan that the EBSA will not take civil action against the plan sponsor with regard to this specific transaction in the submission. It is also important to note that there is no application fee to file through the VFCP.
Death, Taxes and Plan Errors
In this world, nothing can be said to be certain, except death, taxes, and retirement plan operational errors. Two decades of plan audits have shown time and time again that even the most accurate plan sponsor is not immune from making one of the common errors.