Pension
What Happens if I Don’t Name a Beneficiary? Who Gets My 401(k)?
KEY POINTS Neglecting to name a beneficiary means your assets may be designated to your estate and become subject to probate. Plan ahead to review your beneficiary information once per year and when major life changes happen. Avoid subjecting your loved ones to the probate process by designating both primary and alternative beneficiaries. You may…
Read MoreHouse Committee Advances Single-Employer Pension Plan Provisions for the New COVID-19 Relief Package
On February 12, 2021, the House Ways and Means Committee approved additions to the new COVID-19 relief package that will most likely be approved by the end of February. It includes key elements related to single-employer plans including 401(k) and defined benefit plans. The legislation is being prepared to come up for a House vote on February…
Read MorePension Contributions at Risk due to COVID-19
As we try to bestow good tidings and wishes onto 2021, we must also weather the aftershocks of 2020 which include a very prevalent global pandemic. According to an article by Pew Trusts, many states are facing budgetary shortfalls due to a loss in revenues coupled with the increasing demand for public health and other…
Read MoreMissing plan participants? Here's how to find them.
The Department of Labor has recently begun putting pressure on pension plan administrators to locate any ‘missing’ participants, or terminated and fully vested participants, who haven’t received any kind of payout from the plan. There are plenty of reasons a former employee may have left money in your plan and maybe you’ve even tried contacting…
Read MorePension Contributions & Lower 2017 Taxes
Did you know that you can deduct pension contributions made by September 15, 2018 from your 2017 taxes? In most years that helps with managing cash flows, but this year it could have major tax consequences. With the corporate tax rate decreasing for most companies from 35% in 2017 to 21% in 2018, deducting pension…
Read More401(k) Plans & Automatic Enrollment?
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…
Read MoreSIMPLE IRA to 401(k) for 2018? The deadline is now
If you’d like to move to a 401(k) for 2018, you must notify employees by 11/2 As your business or that of your clients has grown, you may be thinking it’s time to upgrade your retirement plan from a SIMPLE-IRA to a 401(k) Plan. The issue is that you can’t switch mid-year as IRS rules…
Read MoreCan an LLC Member Contribute to a 401(k) Plan?
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”…
Read MoreTarget-Date funds expand their reach in 401(k) plans
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…
Read MoreLooking to add a 401(k) Plan for your company?
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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