…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…
…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…
…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…
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-…
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…
At a glance, compliance tests assure that every retirement plan is producing a meaningful benefit to rank and file employees and that it demonstrates a level of fairness in the benefits those same employees get as compared to the benefits achieved by owners and other…
…opportunity for rank and file employees to participate while giving owners a more generous savings path. And don’t forget, the IRS provides all employees over the age of 50 the opportunity to make what are called “catch up” contributions. This might be the best named…
…other factors. So, a simple formula might allocate 3% of compensation to all eligible employees. Participants share on a pro rata basis. A company owner might ask – can we include the contributions we make to social security as a factor in our formula? The…
…save. Some may want a way to contribute a share of profits to their employees’ retirement. Some are looking to provide an incentive for employees to stay around longer. And some need a competitive retirement benefit to attract and retain top talent. If we truly…