…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…
Figuring out how much money one needs to save for retirement can be quite a balancing act for even the most prudent plan participant. Estimating when you will even retire can in itself be a conundrum for employees, especially younger employees; hazarding a guess at…
…retirement savings options for non-profit employees by allowing groups of non-profits to join together to offer retirement plans to their employees. Giving individuals aged 60 and older more flexibility to set aside savings as they approach retirement. Increasing the required minimum distribution age to 75….
…is included in employer contributions; essentially, such an employee must be credited with a year of vesting service for each 12-month period during which the employee has completed at least 500 hours of service. The rule does not apply to participants who met the plan’s…
In September, the U.S. Department of Labor’s (DOL) Employee Benefits Security Administration (EBSA), the Internal Revenue Service (IRS), and the Pension Benefit Guaranty Corporation (PBGC) jointly announced they were seeking public comments on proposed revisions to the Form 5500 Annual Return/Report filed by private-sector employee…
…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…
…will be a popular feature for plan sponsors with employees carrying student loan debt. Employees receive matching contributions based on student loan payments as though the loan payments were plan deferrals. This feature will likely be popular among participants, and plan sponsors will likely use…
…selection of one of these needs to reflect the age and income ranges of the employee population as well as the sophistication of the plan fiduciaries and availability of investment managers. Employees must also always be able to opt out of the the QDIA and…
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-…
…establishing “a new, additional safe harbor for employee benefit plan administrators to use electronic media, as a default, to furnish information to participants and beneficiaries of plans subject to the Employee Retirement Income Security Act of 1974 (ERISA).” And yes, that translates as email, text…
…contributions on Form W-2 in Box 14. As you will see when you look at Form W-2, Box 14 serves as a “catch-all” for several miscellaneous types of plan contributions, including after-tax contributions, nonelective employer contributions made on behalf of an employee, required employee contributions…
…they do, plan sponsors, as fiduciaries, can be held responsible. Administering a retirement plan carries with it a fiduciary duty to act with the highest standard of care. The Employee Retirement Income Security Act of 1974 (ERISA) requires fiduciaries—like the plan sponsor—to act as a…