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 ourse...
February
27
2020
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...
August
21
2019
How to Fix a Participant Loan
Posted by David J. Kupstas, FSA, EA, MSEA
in 401(k), participant loan, epcrs, irs, vcp
with No Comments
Recently, we shared the basic rules related to participant loans in qualified retirement plans. From time to time, there will be loans that are not in compliance with one or more of these rules. What happens then? Is there a fix? Today, we will go th...
June
19
2019
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 ...