What Do Safe Harbor Adjustments Mean for Compensation Definitions?
Safe Harbor Adjustments (Part 2 of 3) (click here to see Part 1) / (click here to see Part 3) The four definitions of compensation described in the previous article are acceptable definitions of compensation for IRC 414(s) in addition to IRC 415(c). IRC 414(s) compensation is used in allocating certain contributions and performing certain […]
You can’t afford to ignore your retirement plan responsibilities
In today’s environment of rising regulatory scrutiny, retirement plan sponsors must keep up with complex legal requirements, while trying to design effective plans that retain employees. “Regulators such as the Department of Labor (DOL) actively review plan Form 5500 filings for evidence of noncompliance, inaccurate reporting and excessive fees, especially since electronic filing makes it […]
Qualified Retirement Plan Definition of Compensation: More Complicated Than You Would Think
What Is Plan Compensation? (Part 1 of 3) (click here to see Part 2) /(click here to see Part 3) One of the most fundamental definitions for a qualified retirement plan is eligible compensation for plan purposes. The definition of compensation, as detailed in the plan’s adoption agreement, determines many things, including highly compensated employees, […]
Changes to Retirement Plan Features Benefit Participants
The awaited final regulations for hardship distributions were released by the IRS in September 2019. The new regulations were a response to proposed changes to the Bipartisan Budget Act of 2018, the 2018 proposed regulations, the Tax Cuts and Jobs Act and other legislation. The regulations put in place proposed changes to hardship distribution rules […]
4 new law changes that may affect your retirement plan
If you save for retirement with an IRA or other plan, you’ll be interested to know that Congress recently passed a law that makes significant modifications to these accounts. The SECURE Act, which was signed into law on December 20, 2019, made these four changes. Change #1: The maximum age for making traditional IRA contributions […]
Top Twelve Strategies for Year-End Planning
The end of the year is approaching—it’s a great time to review your employee benefit plans to ensure they’re compliant and up to date. Below are our top twelve strategies: Is your plan on track to require an audit? Generally, most existing benefit plans require an audit once the number of eligible employees exceeds 120 […]
Factor 2020 cost-of-living adjustments into your year-end tax planning
The IRS recently issued its 2020 cost-of-living adjustments. With inflation remaining largely in check, many amounts increased slightly, and some stayed at 2019 levels. As you implement 2019 year-end tax planning strategies, be sure to take these 2020 adjustments into account. Under the Tax Cuts and Jobs Act (TCJA), annual inflation adjustments are calculated using […]
Fiduciary Responsibilities of Not-for-Profits: Employee Benefit Plans
Benefit plans can be invaluable assets for recruiting and retaining employees. Offering them, however, adds fiduciary responsibilities and compliance requirements to your plate. Do you have a process for identifying and meeting ERISA guidelines? To help non-profit leaders understand these issues, Clark Schaefer Hackett is hosting a free, informative lunch-and-learn presentation on fiduciary responsibilities of […]
DOL expands retirement plan options for smaller businesses
The U.S. Department of Labor (DOL) has released a final rule which should make it easier for smaller businesses to provide retirement plans to their employees. According to the DOL, the rule will enable more small and midsize unrelated businesses to join forces in multiple employer plans (MEPs) that provide their employees a defined contribution […]
You may have to pay tax on Social Security benefits
During your working days, you pay Social Security tax in the form of withholding from your salary or self-employment tax. And when you start receiving Social Security benefits, you may be surprised to learn that some of the payments may be taxed. If you’re getting close to retirement age, you may be wondering if your […]