Search Results

We have found 202 results matching your search query.

401(k) Plan Design and Automatic Features

…the automatic contribution arrangement to the employees as specified in the amended plan. The employer would also need to have employee election forms available for all employees covered by the automatic contribution arrangement. WHAT NOTICES ARE NEEDED TO BE PROVIDED TO EMPLOYEES FOR AN EACA…

What is Non-Discrimination Testing?

Nondiscrimination testing is required for qualified retirement plans to ensure that benefits under the plan do not discriminate in favor of officers, owners, shareholders, employees in authority of other employees or any other employee classified as a highly compensated employees (HCEs). WHY WHERE THE NON-DISCRIMINATION…

How Does A Cash Balance Plan Work?

…to short-term employees. The plan is structured to allow employees who terminate for any reason at any age to access their retirement monies. This allows employees to rollover their account balance to an IRA or to a new employer’s plan. Traditional plans typically restrict access…

Fumbling the Fiduciary Ball

…document should contain a definition of “employee” and provide requirements for when employees can become plan participants eligible to make elective deferrals. Employers can sometimes assume the plan doesn’t cover certain employees, such as part-timers; in other instances, employees who elect not to make elective…

Enhancing Your Bank’s Competitive Position with an Executive Benefit Plan

…choice, a situation that is leading many banks to offer benefit programs that include executive benefit plans as a way of garnering a strategic advantage. Reward Employees Without Impacting Costs on an Organization-Wide Basis Under the Employee Retirement Income Security Act of 1974 (ERISA), qualified…

When to Set Sail with Safe Harbor

…a plan measures up. Here they are in a nutshell: The ADP test – which stands for “Actual Deferral Percentage” looks at how the deferral rate for highly compensated employees compares to that of non-highly compensated employees. Typically, the deferral percent for highly compensated employees…

Driving your Organization’s Success using Benefits as a Recruitment Tool

…Bringing in a new employee at any level can decrease productivity temporarily while that employee learns the job. Using key retirement plan features to retain managers and trained employees can help maintain productivity levels. Including plan features that employees want, such as a variety of…

What is a Safe Harbor Plan?

…minimum match of 100% of the employee’s contributions up to 1% of salary plus 50% of the employee’s contributions that exceed 1% of salary but do not exceed 6% of salary. Safe Harbor Contribution Requirement for Plans without Qualified Automatic Contribution Arrangement These safe harbor…

How Innovative Plan Design Can Contribute to a Credit Union’s Success

…percentage of compensation or a dollar amount) to older employees, employees with more years of service, and/or employees who are performing the most important functions for the business. Because younger employees have a longer time horizon in which to grow their assets, cross-tested plans effectively…

Employer Connect: When to Set Sail with Safe Harbor

employees. This includes those employees who don’t defer. A quick note: Safe Harbor contributions must always be 100% vested. That means that employees can count these contributions in their balances without forfeiture upon termination of employment. Adopting a Safe Harbor provision can help your plan…

Executive Benefit And Director Plans 101

…Because there are no coverage, eligibility or participation requirements, an employer can decide to provide nonqualified deferred compensation benefits only to a select group of executive or highly compensated employees. This allows the employer to provide rewards and incentives based on an employee-by-employee approach, offering…

Cross Tested Plans

…presumably “key” employees, while younger, and/or lower paid employees receive a lower percentage of the total employer contribution to the plan. New Comparability plans are typically designed to benefit owners and key employees over rank and file employees, and can be used if the employer…