July 10 2019

When Cross-Tested Plans Become Integrated Plans

Many 401(k) and profit sharing plans are set up to be cross-tested plans. (Most of those that aren't probably should be.) There are times, however, when using cross-testing is not the best way to satisfy the nondiscrimination rules. Sometimes, you mi...

June 19 2019

Participant Loan Basics

Participant loans are a popular feature of 401(k)s and other qualified retirement plans. It is safe to say that if employees didn’t have the ability to borrow from their retirement account when times were tough, some number of these employees simply ...

June 12 2019

401(k) Word Search

Hello summer. I have teenage girls so summer arrives with an energy in my house that is filled with sleepovers, karaoke, ice cream and late night laughter. Summer is a season where people slow down a bit to catch their breath. In a world so busy with...

May 08 2019

What to Know about Your 401(k) Plan

We all know the saying Knowledge is Power. This quote hits the mark when it comes to retirement plans – for both the participant and plan sponsor. Being equally important, I will discuss what you should know about your plan from both perspectives. Pl...

April 17 2019

IRS Reverses Position on Retiree Lump Sum Windows

In a somewhat surprising reversal of guidance issued four years ago, the IRS announced recently that it is okay to offer retirees and beneficiaries who are currently receiving annuity payments under a defined benefit plan a temporary option to elect ...

April 10 2019

Traditional 401(k) Versus Roth 401(k)

Posted by Mona Jain in 401(k), Retirement with No Comments

As most of us have either recently filed our 2018 federal income taxes, or are in the frantic last-minute scramble to do so, now is a good time to consider your retirement investment options. Recently, a growing number of employers offer a Roth 401(k...

March 20 2019

Considerations Before Excluding Bonuses in 401(k)

During the implementation a 401(k) plan, a retirement plan consultant sits with the plan sponsor and explains the various plan design options. There is a lot of flexibility offered, but some provisions carry a level of risk that is greater than other...

February 13 2019

Deadlines for 401(k) Contributions and How to Fix Late Deposits

Taking too long to deposit an employee’s salary deferral contributions into a 401(k) plan is a big no-no. We hear all kinds of excuses why plan sponsors take too long to make their deposits. Reasonable as they may sound to the person making them, the...

December 12 2018

What’s the Big Change with 401(k) Hardships?

On February 9, 2018, the Bipartisan Budget Act of 2018 was passed into law, which ended the government shutdown by raising the debt ceiling for the next two years. Sandwiched deep within were changes to rules that govern hardship distributions in 401...

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, ...

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