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Category: 401(k)

401(k) Plans & Automatic Enrollment?

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A recent study by Employee Fiduciary examined the negative aspects of automatic employee enrollment in 401(k) plans, particularly for smaller plans. Only 8.7% of small business plans (average of 25 participants with assets of $1M) automatically enroll eligible employees as opposed to 68% of larger plans. Why the contrast when automatic enrollment is traditionally seen as an […]

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14 Aug
401k

Do S-Corporation Distributions count for 401k & Pension Plans?

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S-Corporations, Distributions, W-2 Wages, Self-Employment Tax, 401k & Pension Plans & their interaction – it’s all about balance. So, you’ve talked to your accountant & they tell you to minimize your W-2 wages to limit your self-employment taxes. Then, you talk to your investment advisor and they explain the advantages of tax-qualified retirement plans such […]

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13 Aug
401k

Can a LLC member contribute to a 401(k) Plan?

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Generally 401(k) deferrals & contributions are allowed, but there are exceptions. The biggest issue to consider is whether or not the member/owner is providing material services that are income producing for the LLC. Here is the basic checklist or list of things to consider: Under Internal Revenue Code Section 401(c)(1), the IRS states that “employee” […]

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07 Jun
Vanguard How America Saves 2017 based on 2016 Defined Contribution Data - Target-Date funds roll on

Target-Date funds expand their reach in 401(k) plans

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Vanguard Group recently issued their 110 page “How America Saves 2017” report on the behavior of defined contribution plan participants in the plans that they record-keep. The trend toward professionally managed options – primarily target-date funds – continues with 53% of participants using such accounts in 2016 (46% were in a single target-date fund). This is […]

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07 Feb

Looking to add a 401(k) Plan for your company?

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The safe harbor deadline for 2016 is October 1st so time is of the essence If you or your clients have been thinking it’s time to add a 401(k) Plan for yourself & your employees, the time is now. As you’re likely aware, the IRS offers a “Safe Harbor” feature that means if you are […]

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07 Feb

2nd chance for those who missed the 60-day IRA/401(k) rollover window

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New IRS waiver program effective immediately If you, one of your clients or one of your employees inadvertently exceeded the 60-day limit when moving retirement funds associated with a “rollover”, they can now receive an IRS waiver of penalties and keep this funds in a retirement plan. The full details may be found in IRS Revenue […]

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Is A Solo DB Plan Right For Me?

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If you’re a one-person business or have substantial self-employment income outside of your “regular” job, a Solo Defined Benefit (“DB”) plan may be for you.  We recently received a call from a professional with the situation of a surprise $250,000 income boost this year and another $100,000 the following year.   His question was “how can […]

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