David J. Kupstas, FSA, EA, MSPA

David J. Kupstas, FSA, EA, MSPA Chief Actuary

Recent Posts

November 14 2018

Can You Have a Maximum DB Plan Without Much Current Compensation? Yes, SIR!

It is generally the case that the more compensation one earns, the bigger the contributions and benefits he may receive from a qualified retirement plan. The limits on salary deferrals in 401(k) plans, annual additions in defined contribution plans, ...

November 07 2018

Qualified Plan, IRA and Social Security Limits Announced for 2019

The IRS, Pension Benefit Guaranty Corporation (PBGC) and Social Security Administration (SSA) have announced 2019 contribution and benefit limits and other numbers of interest. Many of these can be found here. Most limits and thresholds will see mode...

September 19 2018

Is Your Employer Cheating You on Your Pension Lump Sum?

I took a call recently from an employee participating in a defined benefit pension plan that is being terminated. As part of the plan termination, the employee had been offered a lump sum buyout. He could take either a monthly pension or a single lum...

August 22 2018

Make Defined Benefit Plan Contributions By September 15, 2018 Even Though It’s a Saturday

You might be aware that if the due date for a tax return occurs on a weekend or holiday, that due date is moved to the next business day. This has happened a couple of times in recent years with the dreaded April 15 due date for personal tax returns ...

July 18 2018

Vesting Rules Determine How Much of Your Retirement Account You Own

In qualified retirement plans, vesting refers to what portion of your benefit you get to take with you when you receive a payout from the plan. It’s how much of your account you “own.” If you are 100 percent vested, it means you are entitled to recei...

June 20 2018

Deductible Limits for Defined Benefit and Combo Plans

This is the second in a two-part series about deductible contribution limits to qualified retirement plans.  The first part last week covered the limits to defined contribution plans.  The tax-deductibility of qualified retirement plan contributions ...

June 13 2018

Deductible Employer Contribution Limits in 401(k)s and Other Defined Contribution Plans

This is the first in a two-part series about deductible contribution limits to qualified retirement plans.  The second part next week will cover arrangements that include defined benefit plans.  Contributions made by a business to a qualified retirem...

May 09 2018

Get a Fidelity Bond to Insure against Fraud and Dishonesty – and Because It’s the Law

Most qualified retirement plans need a fidelity bond.  This has been the rule for more than 40 years. Even so, it is not the kind of thing the typical plan sponsor spends a lot of time focusing on. A what bond? Fidelity who? We run across a number of...

April 11 2018

Avoid the ADP Test with a Safe Harbor 401(k) Plan

The  ADP test  for 401(k) plans is like a mosquito:  it is annoying and has no known benefit to society.  The worst outcome of a failed ADP test is you have to  refund  excess contributions to  Highly Compensated Employees .  At a minimum, you’ve was...

March 07 2018

If You Defer Too Much in a 401(k), Your Money Will Be Cheerfully Refunded

When an employee contributes too much to a 401(k) plan, a common fix is for the excess amount to be refunded to the employee. The technical term for this kind of refund is “corrective distribution.” At this time of year, plan sponsors may be scrambli...

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