The IRS has announced that, for qualified retirement plans adopted in 2021 retroactive to the 2020 plan year, a 2020 Form 5500 will not be required.
August
12
2021
No 2020 Form 5500 Needed for Retroactive Qualified Plans
Posted by David J. Kupstas, FSA, EA, MSEA
in 401(k), Retirement, defined benefit, secure act, form 5500
with No Comments
May
21
2021
RMDs for Beneficiaries in Qualified Retirement Plans
Posted by David J. Kupstas, FSA, EA, MSEA
in 401(k), Retirement, RMD, 70 1/2, death, required minimum distribution, beneficiary, secure act, nonspouse
with No Comments
When an employee in a qualified retirement plan dies, the employee’s account balance has to be distributed to the beneficiary at a certain rate over a certain timeframe. The money cannot stay in the plan forever. What is that timeframe? When do distr...
April
29
2021
Catch-Up Contributions: A Good Thing for Both Men and Women
Posted by David J. Kupstas, FSA, EA, MSEA
in 401(k), Retirement, ADP test, catch-up contribution
with No Comments
Back in 2001, a law called the Economic Growth and Tax Relief Reconciliation Act (EGTRRA) was passed. Some referred to it as the Bush Tax Cuts, Round One. The law had a number of provisions related to qualified retirement plans. Among these, in a sec...
December
23
2020
Mega Backdoor Roth IRA: A Neat Idea that Rarely Works
Posted by David J. Kupstas, FSA, EA, MSEA
in 401(k), retirement plan, qualified plan, roth ira, mega backdoor roth ira
with No Comments
Lately, several people have asked me about a “mega backdoor Roth IRA.” I didn’t really know what this was, but anything with “backdoor” in the name is something I want to explore. It sounds a little devious. Maybe I could finally be a bad boy – more ...
November
20
2020
“You keep using that word. I do not think it means what you think it means.” So goes the internet meme based on Inigo Montoya’s complaint to Vizzini about his use of the word "inconceivable" in The Princess Bride movie. In the pension business, ther...
October
29
2020
Out with 2020, In with the 2021 Retirement Plan Rates and Limits
Posted by David J. Kupstas, FSA, EA, MSEA
in 401(k), defined contribution, defined benefit, irs, pbgc, social security, retirement plan, qualified plan
with No Comments
As we head toward the close of this turbulent year, we have learned that most IRS limits related to qualified retirement plans will hold steady in 2021. Retirees receiving Social Security benefits will receive another modest increase, while PBGC prem...
August
19
2020
You may recall that the CARES Act says required minimum distributions (RMDs) don’t have to be taken in 2020 from IRAs and many employer retirement plans. This seems like a pretty simple concept, but it’s not. There were a number of unanswered questio...
July
08
2020
The CARES Act, signed into law on March 27, 2020, allows employees affected by COVID-19 greater access to money set aside for them in employer retirement plans. As often happens, many details of this new law were not immediately clear. We found our...
June
17
2020
Retirement planning has become top of mind for many Americans in today’s economy. Fortunately, most businesses now offer 401(k) plans to attract new talent and compensate existing employees, helping them plan for their financial futures beyond their ...
March
23
2020
Options for Accessing Retirement Plan Money Amid COVID-19 Outbreak
Posted by David J. Kupstas, FSA, EA, MSEA
in 401(k), Retirement, Financial Planning, distribution planning, coronavirus, covid-19
with No Comments
Amid the coronavirus (COVID-19) scare, we are getting reports that our clients are imposing layoffs, furloughs, and temporary shutdowns. It makes sense; if people aren’t coming to your business, there’s no work for the employees to do and no money t...