GASB 67 and GASB 68: What’s the Difference?

Government employee standardizing pension plan reporting in compliance with GASB 67 and GASB 68.

Key Points Governmental Accounting Standards Board Statement No. 67 (GASB 67) – Financial Reporting for Pension Plans Governmental Accounting Standards Board Statement No. 68 (GASB 68) – Accounting and Financial Reporting for Pensions GASB 67 and GASB 68 changed the way public pension plan data is measured and reported, effectively replacing previous statements GASB 25…

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Social Security and Government Pension Offset Simplified

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KEY POINTS Government Pension Offset (“GPO”) adjusts Social Security spousal or survivor’s benefits for those who receive “non-covered” pensions. GPO reduces Social Security spousal and survivor benefits by 2/3rd of the monthly pension payment from a non-covered government job. The bipartisan Social Security Fairness Act (“SSFA”) bill, designed to eliminate both GPO and the Windfall…

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What Happens if I Don’t Name a Beneficiary? Who Gets My 401(k)?

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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…

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House Committee Advances Single-Employer Pension Plan Provisions for the New COVID-19 Relief Package

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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…

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Pension Contributions at Risk due to COVID-19

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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…

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Missing plan participants? Here's how to find them.

Close up of two people sitting at a desk at a place of business. They are looking at a desk full of financial documents and an ipad.

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…

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Pension Contributions & Lower 2017 Taxes

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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…

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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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SIMPLE IRA to 401(k) for 2018? The deadline is now

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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…

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Do S-Corporation Distributions Count For 401k & Pension Plans?

Key Points Short answer – no. Contributions to a retirement plan may only be made from your W-2 wages/earned income. Your retirement plan contributions are based solely on your W-2 wages and NOT on the flow-through income. Please consult with your accountant, tax advisor, and investment professional to review your compensation and go over specific…

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