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 ...
Mega Backdoor Roth IRA: A Neat Idea that Rarely Works
“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...
Out with 2020, In with the 2021 Retirement Plan Rates and Limits
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...
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...
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...
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 ...
Options for Accessing Retirement Plan Money Amid COVID-19 Outbreak
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...
What does it mean when a plan fails its ADP test? An ADP test, Actual Deferral Percentage, is a discrimination test required by the law to ensure that the Highly Compensated Employees (HCEs) are not deferring at a much higher rate than the Non-Highly...
What You Need to Know About the SECURE Act
By now you have likely heard about the SECURE Act recently passed by Congress. The Setting Every Community Up for Retirement Enhancement (SECURE) Act will increase access to workplace retirement plans and expand retirement savings, but what provision...
Five Best Practices to Protect Your Retirement Nest Egg from Cybertheft
I remember when I was 10, there was no such thing as a debit card. In fact, growing up in the ‘80s meant no internet, no PayPal, no direct deposit or any type of remote banking. While they make things extremely efficient and easy for us, these techno...