…that respondents anticipate will be involved in the formation and ongoing operation of PEPs. This document also requests information on similar issues involving multiple employer plans sponsored by employer groups or associations or professional employer organizations (referred to herein as “MEPs”). The Department of Labor…
…of Form 8881, Credit for Small Employer Pension Plan Startup Costs and Auto-Enrollment to claim the credits. What about businesses that will join or have joined multiple employer plans (MEPs) or Pooled Employer Plans (PEPs)? Fortunately, Section 111 of SECURE 2.0 ensures the startup tax…
…to claim the credits. What about businesses that will join or have joined multiple employer plans (MEPs) or Pooled Employer Plans (PEPs)? Fortunately, Section 111 of SECURE 2.0 ensures the startup tax credit is available for three years for employers joining a MEP or PEP,…
…is to make sure that the 5500 is accurate and complete. Small employers – those with less than 100 workers – are exempt from that requirement. For years, employers in the same industry have been able to form multiple employer plans (MEPs), which can help…
For over 50 years, the Defined Benefit (DB) pension plans have served as the cornerstone to an employer’s retirement program. In fact, during the 80’s and 90’s most plans were overfunded, allowing employers to maintain these plans with little to no out of pocket contributions….
…Pentegra has essentially been doing this sort of thing, running multiple employer plans, for the past several decades. We know the ins and outs of managing these kinds of plans, which includes paying strict attention to ERISA guidelines – something neophytes may not be able…
An automatic contribution arrangement (also known as automatic enrollment) is a feature in a retirement plan that allows an employer to “enroll” an eligible employee in the employer’s plan unless the employee affirmatively elects otherwise. “Enroll” in this context means that part of the employee’s…
…guidance: Sponsors may but are not required to include in their plan any type of Roth contribution – employee elective, employer matching, or employer nonelective. The rules currently (pre-SECURE 2.0) applicable to employee elective Roth contributions also generally apply to the new Roth employer contributions….
There are a variety of different types of employer contributions out there, and like everything else, they all have upsides and downsides. According to the Profit Sharing Council of America’s 61st Annual Survey, the average employer contribution made to a Defined Contribution retirement plan equals…
…the 3-year credit related to small employer startup costs for employers with no more than 50 employees from 50% to 100% of startup costs. New employer contributions credit: A new 5-year credit for matching and nonelective contributions (to qualified plans other than defined benefit (DB)…
…filing the employer’s tax return for 2020. Under such a scenario, the plan is assumed to be adopted as of the last day of the employer’s prior tax year – i.e., Dec. 31, 2020. The provision applies to plans adopted for taxable years beginning after…
…under SECURE 2.0). Eligible 401(k) Replacement Plan Key Characteristics A SIMPLE 401(k) Employer has 100 or fewer employees Must be the only plan maintained by the employer Must file a Form 5500 annually Voluntary employee deferrals Mandatory employer contributions (3% match or 2% nonelective) Immediate…