…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…
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…
…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…
…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…
…and 73% are struggling to find qualified employees to fill positions1 . With job candidates scarce, companies will be vying for the same top-tier employees. As a result, many companies are utilizing their retirement and benefit packages and placing an emphasis on improving their employees’…
…Second, the new law also added an additional credit exclusively for defined contribution plans with 50 or fewer employees. The credit is equal to a percentage of the amount you, as the employer, contribute on behalf of employees, up to a per-employee cap of $1,000….
…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…
…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…
…Many employees now expect to work remotely and have greater flexibility in their chosen work environment. Employers are finding it more difficult to find the talent they need as many employees have either left the work force or have increased their salary demands, keenly aware…
…amounts (expressed as either a 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…
…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…
…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…