401(k)

/Tag: 401(k)

Port in the Storm

Natural disasters can cause upheaval in many aspects of victims’ lives and this destruction often extends to financial matters. What should otherwise be routine compliance for plan deadlines can prove difficult in these extreme events and the government tends to grant temporary relief in such cases.

2018-11-19T15:30:38+00:00November 12th, 2018|Categories: Newsletters/Bulletins|Tags: , , , |Comments Off on Port in the Storm

Helping Hands

One of the most prevalent and difficult challenges for many twenty somethings these days is the repayment of their, often substantial, student loan debt. Statistics show that the average college graduate with a bachelor’s degree left school in 2016 with $28,446 in student loan debt.

2018-11-20T23:51:25+00:00November 12th, 2018|Categories: Newsletters/Bulletins|Tags: , , , , |Comments Off on Helping Hands

Hardships Get a Little Easier

Earlier this year, the Bipartisan Budget Act of 2018 was passed by Congress and signed into law. While this law made several changes that impact retirement plans, one provision changing the rules around hardship distributions is particularly notable.

2018-11-12T12:03:47+00:00November 12th, 2018|Categories: Newsletters/Bulletins|Tags: , , , , , , |Comments Off on Hardships Get a Little Easier

Helpful Hints for Plan Sponsors

Being a plan sponsor comes with a good bit of responsibility. You’ve taken the important step of hiring a third-party administration firm to help you navigate the myriad of processes that are required to keep your plan in compliance with applicable regulations. Below are a few helpful hints to keep your plan in compliance, avoid unnecessary corrections, and help to better serve your participants.

2018-08-06T08:44:36+00:00August 6th, 2018|Categories: Newsletters/Bulletins|Tags: , , , , , |Comments Off on Helpful Hints for Plan Sponsors

The Retirement Income Gap

Many American workers participate in company retirement plans, methodically contributing to their accounts over time to fund for life after work. Beyond benefiting from employer-funded plans, retirees commonly draw from additional savings tucked away in IRAs or after-tax savings accounts as well. Add Social Security payments to the mix and it should be a recipe for a secure retirement, right? While many retirees thoroughly plan for their retirement, the rising cost of living and unforeseen expenses can mean the retirement income may fall short of anticipated needs. The difference between your retirement income and actual expenses is known as your Retirement Income Gap.

2018-08-06T08:45:24+00:00August 6th, 2018|Categories: Newsletters/Bulletins|Tags: , , , , , , |Comments Off on The Retirement Income Gap

HSA vs 401(k)

If your company has decided to offer a high deductible health plan, don’t worry, you are not alone. Recent studies show that an increasing number of employers have elected to offer high deductible health plans (HDHP) either to completely replace or be offered in conjunction with a more traditional Health Maintenance Organization (HMO)plan or Preferred Provider Organization (PPO) plan. When sponsoring an HDHP, employers typically offer their employees the ability to contribute to a Health Savings Account (HSA) to help offset the increased deductible associated with the HDHP. In 2015, 24 percent of all workers were enrolled in a HDHP with an HSA savings option. This is a dramatic rise since 2009 when just 8 percent were covered under such plans.

2018-05-03T09:16:07+00:00May 3rd, 2018|Categories: Newsletters/Bulletins|Tags: , , , , , , |Comments Off on HSA vs 401(k)

Who is an Employee?

Maintaining a retirement plan for your employees is no easy task. At various points during the year, employers and HR departments field participant questions, help with enrollments, deliver notices and statements, and participate in the distribution process. However, an additional responsibility, and one of the most important, is the collection of data that is used for compliance testing and government reporting. Though all these duties are important, one task drastically affects the outcome of your compliance testing; accurate reporting of all employee information to your third-party administrator. Sound onerous? Not really.

Pro-Rata Participant Fees and Fee Transparency: A Recordkeeper’s Conundrum

What does it mean when fees are assessed "pro-rata"? The pro-rata method of assessing a fee is when the total fee amount is deducted proportionally from participant accounts. In terms of fee fairness, pro-rata fees will ensure that all participant fees are reasonable based on their account balance. In terms of fee clarity, a participant will never be able to verify or calculate their pro-rata fee, since they are only aware of their individual account balance and not the balances of other participants.

2017-08-10T14:28:40+00:00August 8th, 2017|Categories: 401k Resources|Tags: , , , , , |Comments Off on Pro-Rata Participant Fees and Fee Transparency: A Recordkeeper’s Conundrum

Business Owner Seeks to Maximize Retirement Contributions in Pre-Retirement Years

This business owner had delayed saving for retirement and was looking to maximize retirement contributions for himself having not contributed significantly for retirement in prior years.

2018-12-03T09:47:36+00:00July 18th, 2017|Categories: Cash Balance Plans|Tags: , , |Comments Off on Business Owner Seeks to Maximize Retirement Contributions in Pre-Retirement Years

Cash Balance Plan Design for Medical Practice Buyout

In this case, the junior partner was looking to buy out the senior partner in a Medical Practice. The HCEs in this medical practice were the Partners and their spouses. HCEs include employees that have at least 5% ownership in the company during the current plan year or the prior plan year regardless of their annual compensation. Immediate family of the Owner(s) of the company, e.g., spouse and children, are also considered HCEs for plan purposes.

2017-07-19T15:16:43+00:00July 18th, 2017|Categories: Cash Balance Plans|Tags: , , |Comments Off on Cash Balance Plan Design for Medical Practice Buyout