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 ...

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...

January 09 2019

What Is a Cash Balance Plan?

Our firm provides third party administrative services for both defined benefit (DB) and defined contribution (DC) plans. There is a type of plan called “cash balance” that sort of falls in between. While they are technically DB plans, they have some ...

October 10 2018

Participant Loans: Are They Right for Your Plan?

There was a time when a good friend convinced me to go with a car lease instead of a purchase. I never had leased a car, but she pointed out all of the great reasons why leasing was better. I ran out and leased a high-end SUV for three years. When my...

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...

April 04 2018

How to Avoid 401(k) Administration Mistakes

Here’s a public service announcement for all plan sponsors of 401(k)s.  Remember the quote from "Jerry Maguire," “Help me help you?”  It’s been 22 years since that movie, but it still holds true today. Third party administrators (TPAs) are the people...