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Depositing Plan Contributions Timely

…that deposit employee contributions in a plan account within seven business days after the contributions are withheld from employees’ wages or received by the employer will automatically satisfy the law’s requirements. Allocations to specific participant accounts and investments do not have to be completed within…

Your Company’s Retirement Plan – Time for a Check-up?

…their plan’s operations regularly. Common errors include: Not covering the proper employees. Make sure that employees are given the opportunity to participate in the plan as soon as they become eligible under the plan’s terms. Not giving employees required information. All plan participants should receive…

Auto-Portability: A Way to Address 401(k) Leakage

…401(k) savings plan when an employee starts a new job and enrolls in a new 401(k). How serious a problem is this? A 2015 report by the Center for Retirement Research at Boston College found that 401(k) plan leakage causes a 25 percent reduction in…

The SECURE Act Has Finally Passed – What Does It Mean? (Part Two)

…workers can contribute to a plan or IRA because tax-exempt “difficulty of care” payments are treated as compensation for purposes of calculating the contribution limits to defined contribution plans and IRAs. This is a splendid development, which provides a heretofore ignored segment of employees a…

More Tales of 401(k) Plans Gone Awry

…add those features … much to the (temporary) dismay of one particular employee. According to the human resources (HR) director at this particular financial institution, one of the bank’s employees came into her office one day with tears streaming down her face and a statement…

New Self-Certification Rules for Hardship Distributions Should Be Embraced

…disaster zone; and the expansion of what constitutes acceptable financial need expenses incurred due to federally declared disasters. Changes that are required under the new rules include the elimination of an employer’s six-month suspension of employee elective deferrals following that employee’s hardship distribution and the…

What 401(k) RESA Legislation Means for MEPs and PEPs

…organized in the United States by an employer for the exclusive benefit of his employees or their beneficiaries, or by an association of employees…for the exclusive benefit of its members or their beneficiaries, shall be treated as an individual retirement account…The assets of the trust…

DB Plans are Alive and Well

…seriously considering a DB plan. But it’s time to take another look because, for smaller, more mature companies, DB plans can be a great vehicle to help employees prepare for retirement. You may be surprised to learn that they are actually a leading choice for…

Can Pension Plans Help the Economy?

…bridges, highways, rail, airports and utilities. Increased Infrastructure spending has been endorsed by both presidential candidates and is expected to be front and center for fiscal policy going forward. The California Public Employees’ Retirement System (CalPERS) has invested $3 billion in both US and non-US…

What Is The Difference Between A 401(k) Plan And A 403(b) Plan?

…plan, often matching employee contributions. Under ERISA, the employer must manage the plan and select investment types in the best interest of the employees participating in the plan. In a non-ERISA plan, the employee chooses the type of investment and usually will work directly with…

Understanding Forfeitures

  Understanding how forfeitures work in retirement plans When we talk about 401k type retirement plans we sometimes focus on the contributions made by employees that are ALWAYS immediately vested. In other words, it’s THEIR money and they can always withdraw it without forfeiting ANY-…