Annemarie Keehn, ERPA, QPA, QKA Navigating the maze of retirement plan options can be confusing. 401(k), Simple, SEP, Money Purchase, Profit Sharing – how can an employer be sure it has chosen the right plan? When an employer implements a SEP (Simplified Employee Pension), oftentimes it is not aware of the limitations of that type of plan.
Investopedia (www.investopedia.com) Please click Here for more information.
The American Institute of CPA's (www.aicpa.org) Please click Here for more information.
Employee Benefits Security Administration, US Department of Labor Starting a retirement savings plan can be easier than most business owners think. What's more, there are a number of retirement programs that provide tax advantages to both employers and employees.
IRS (www.irs.gov) Since the proposed 2015 IRS compliance qustions on the Forms 5500 and 5500-SF and Schedules H, I, and R weren't approved by the Office of Management and Budget when the 2015 Form 5500 and Form 5500-SF were published on December 7, 2015, the IRS has decided that plan sponsors should not complete these question for the 2015 plan year.
IRS (www.irs.gov) Retirement plan documents must be revised when the law changes. Your retirement plan will remain qualified and provide tax benefits only if you update your plan document for law changes by the required deadline.
ASPPA Net Staff (asppa-net.org) The advent of a new year traditionally is a time to take of stock of where one has been and what lies ahead. Accordingly, Transamerica recently issued "Prescience 2019: Expert Opinions on the Future of Retirement Plans," a report containing the results of its survey of experts from a wide range of sectors and perspectives on their expectations regarding retirement plans. APC's President Marc Roberts contributed to this study.
IRS (www.irs.gov) During 2015, the IRS began classifying Voluntary Correction Program (VCP) fees as user fees subject to IRC 7528. As a result, in 2016, plan sponsors will refer to a new, annual revenue procedure to determine the appropriate fee when making a VCP submission to the IRS. In addition, the IRS made changes to the general fees for submissions for IRC 401(a) and 402(b) retirement plans.
DrinkerBiddle (www.drinkerbiddle.com) The U.S. Supreme Court's recent unanimous decision in Tibble v. Edison International sounds a reminder that fiduciary reponsibility includes the duty to monitor. Tibble involved a challenge by 401(k) plan pariticipants to the retention of higher priced retail class mutual funds when allegedly materially identical lower priced institutional class mutual funds where available.
McGladrey (mcgladrey.com) Rev. Proc. 2015-32 provides a procedure for plan administrators and plan sponsors of retirement plans not subject to Title I of the Employee Retirement Income Security Act of 1974 (ERISA) to receive penalty relief for late filed returns without having to demonstrate resaonable cause for the late filing.
IRS (www.irs.gov) You received this notice because you filed Form 5500-EZ for a retirement plan last year (or you filed Form 5500-SF in place of a Form 5500-EZ for a one-participant plan). This notice is a reminder of your filing requirements.
US Department of Labor (www.dol.gov) How can the fiduciaries of terminated defined contribution plans fulfill their obligations under ERISA to locate missing participants' account balances?
IRS (www.irs.gov) A new pilot program gives sponsors and administrators of retirement plans not covered by Title I of ERISA automatic relief from IRS late filing penalties on past due 5500 forms.
IRS (www.irs.gov) We examined approximately 50 Form 5500 returns of defined contribution plans with: 1. assets valued between $100,000, and $250,000; 2. a plan effective date of January 1, 1997 (or earlier); and 3. disclosed plan distributions.
By Chris CarosaA few weeks ago FiduciaryNews.com published an exclusive interview with Assistant Secretary Phyllis Borzi. In that article, Borzi expressed concern about the potential for fraud and abuse in Multiple Employer Plans (MEPS). This set off a major debate among those in the know.
By Todd Berghuis Most of us have heard the expression "Don't shoot the messenger." In other words the bearer of unwelcome news may not be the cause of it and shouldn't be blamed or punished for delivering it. Sadly, our retirement industry, and in particular those associated with 401(k) plans, have at times been the victim of "messenger blame," particularly with respect to American workers' retirement readiness.
By Chris Carosa A few weeks ago FiduciaryNews.com published and exclusive interview with Assistant Secretary Phyllis Borzi. In that article, Borzi expressed concern about the potential for fraud and abuse in Multiple Employer Plans (MEPs). This set off a major debate among those in the know. Was Borzi suggesting MEPs are more susceptible to fraud and abuse than the typical 401(k) plan?
The more you know before you start making decisions, the better off you will be in retirement. This retirement toolkit is brought to you by the three federal agencies involved in key elements of your retirement planning and security: The Department of Labor, the Social Security Administration and The Centers for Medicare & Medicaid Services.
As a plan sponsor, you have a fiduciary responsibility to find a bargain when it comes to picking a plan provider, but you may increase your potential liability by picking providers just because they are cheap. This article is about why you shouldn't pick a plan provider just on low price.
U.S. workers willing to take tax pain today in exchange for tax-free gains on earnings in their 401(k) retirement accounts later have a new avenue to do so.
Going forward, advisers working on company 401(k) plans are going to be graded on how well they prepare their plan participants to meet their retirement needs.
The Labor Department issues important guidance on what constitutes a valid multiple-employer 401(k) plan.
Protecting retirement benefits through educating customers.
The Retirement News for Employers is a periodic newsletter with retirement plan information for employers and business owners - and their tax advisors from Employee Plans (Tax Exempt and Government Entities (TE/GE) at the IRS).
Your financial adviser doesn't want you to read this column. Many retirement investors, egged on by brokers and mutual-fund companies, put a great deal of emphasis on crafting finely tuned portfolios out of stocks, bonds and -increasingly, these days- other exotic investments.
The percentage of America's younger workers who say an employer-sponsored retirement program is important for either joining or staying with an employer has increased dramatically in the past two years, according to the Towers Watson Retirement Attitudes Survey.
The Internal Revenue Service is offering a break to employers who come clean about wrongly classifying workers as independent contractors to avoid paying federal payroll taxes, the agency recently announced.
The US Department of Labor's Employee Benefits Security Administration today announced the it intends to extend the applicability date for the new disclosure rules under section 408(b)(2) of ERISA to Jan 1, 2012.
The Employee Retirement Income Security Act (ERISA) requires plan fiduciaries, when selecting and monitoring service providers and plan investments, to act prudently and solely in the interest of the plan's participants and beneficiaries....
During the week of May 17th, IRS Employee Plans Compliance Unit (EPCU) will send a letter and instructions to 1,200 employers sponsoring 401(k) plans asking them to complete the 401(k) Compliance Check Questionnaire.
Just how much are you going to need in order to retire comfortably? It may be the biggest financial question in your life. With 80 million baby boomers now heading into the flight path for retirement, it's a pressing one, too.
New York accounting firm Eisner LLP has issued a warning that the Internal Revenue Service (IRS) will begin sending questionnaires to 401(k) sponsors to gather information about their level of compliance with applicable tax rules.....
A special edition of the IRS Employee Plan News reminds employers of the deadline to adopt their new pre-approved plan.
Several signs suggest that the number of EBSA investigations and penalties will increase.
Our recent column about tax rules that are about to give more people access to a Roth individual retirement account prompted many questions from readers...
The IRS has launched a new site www.retirementplans.irs.gov to encourage small-business owners to establish retirement plans for their employees. The site will help employers choose the right plan for their business and has information and resources on maintaining plans and correcting plan errors.
If you offer a defined contribution plan to your workers, your plan document must be restated with the IRS sometime within the next year. This is a result of the Economic Growth and Tax Relief Tax Reconciliation Act of 2001....
The IRS has issued proposed regulations that will permit employers who maintain a safe harbor 401(k) plan to reduce or suspend ("exit") that safe harbor nonelective contribution during the plan year without disqualifying the 401(k) arrangement....
Current Economic conditions have raised considerable questions regarding required Safe Harbor contributions. This article from Sungard Relius covers how an employer can eliminate or freeze fixed contributions under a safe harbor 401(k) plan.
The Field Assistance Bulletin from the DOL (link above) is an in-depth Q&A article providing guidance and valuable information about current bonding requirements.
The DOL recently issued a fact sheet with information relating to Qualified Default Investment Alternatives in Participant-Directed Individual Account Plans.