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
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
How do the new Required Minimum Distribution rules under the SECURE Act affect financial statement audits?
Posted by Maria T. Hurd, CPA, RPA The New Law The SECURE Act (Setting Every Community Up for Retirement Enhancement) changed the age at which non-5% owners who have terminated employment with a retirement plan sponsor must take required minimum distributions (RMD). Participants who reach age 70½ after 2019 must take their first RMD by the April 1 of the … Continued
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
How does the SECURE Act allow Penalty-Free Distributions from Retirement Plans for Childbirth or Adoption Expenses?
Posted by Maria T. Hurd, CPA, RPA Updated 3.26.2020 Children are a financial hardship!!! The IRS has finally recognized it by adding a new type of penalty-free distribution from defined contribution retirement plans: the Qualified Birth or Adoption Distribution (QBOAD), effective January 1, 2020. The new provision is optional, so plan sponsors will need to amend their plans to permit … Continued
Could Inclusion of Long-Term, Part-Time Employees under the Secure Act Trigger a Financial Statement Audit?
Posted by Maria T. Hurd, CPA, RPA Large Plans Require Financial Statement Audits Generally, plans with at least 100 participants on the first day of the plan year must engage an independent qualified public accountant to perform an audit of the plan’s financial statements. The audit report, financial statements, note disclosures, and supplementary schedules are filed as an attachment to … Continued
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
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
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
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