…under which an employee must complete either a one year of service requirement (with the 1,000-hour rule) or three consecutive years of service where the employee completes at least 500 hours of service. Again, anything that encourages employers and employees to save – or expand…
…and redo their contribution tracking, make corrections, and ultimately pay a penalty. Bonuses. Some clients give employees a monetary bonus at the end of the year, and they don’t want to see deductions taken from those bonuses. There are a couple of potential problems here:…
…employees who work at small and midsized firms do not have an employer-sponsored plan. Also worth noting is Sen. Sheldon Whitehouse (D-R.I.)’s introduction of a bill that would introduce the concept of helping employees contribute to a retirement plan through an automatic payroll deduction Individual…
…a then unknown company (Abbott Laboratories) who wanted to amend its 401(k) plan to offer a special benefit to help its employees who were paying off student loan debt by making special contributions to its 401(k) plan for those employees. The PLR created quite a…
…a then unknown company (Abbott Laboratories) who wanted to amend its 401(k) plan to offer a special benefit to help its employees who were paying off student loan debt by making special contributions to its 401(k) plan for those employees. The PLR created quite a…
…Once a plan is disqualified, different rules apply to the amount an employer can deduct for plan contributions and when deductions are allowed. Unlike contributions to a qualified plan, contributions to a nonexempt employees’ trust cannot be deducted until the contributions are includable in employees’…
…Meanwhile, on May 11, the New York State Assembly passed a bill that automatically enrolls employees at private sector companies with 10 or more employees that do not offer a retirement plan in the Secure Choice Savings program; similar to the Delaware EARNS program, the…
…client established a payroll file only for each employee who was contributing to the plan on an automatic enrollment basis. The problem here was that the client had a lot of employee turnover, with new hires coming in all the time. Six months later, we…
403(b) plans are commonly used by tax-exempt organizations to provide retirement benefits for their employees. Generally, plans that are established or maintained by private tax-exempt organizations are subject to ERISA (governmental and non-electing church plans are always exempt). However, there have always been questions about…
…participants. KSOP A KSOP is an ESOP with a 401(k) feature and provides for both employer stock contributions and employee deferrals. Employer contributions can be mad in either stock or cash. A KSOP combines two separate plans, offering simplified administration, streamlined employee communication and greater…
…compensated employees who would expect to receive a lower retirement income, expressed as a percentage of pay from Social Security, than lower paid employees. Integrated formulas also reduce program costs, as a lower accrual rate is used to determine benefits based on salary up to…
…employees can make a direct rollover from a Roth 401(k) account to a Roth IRA. Under a traditional 401(k) plan, funds are typically rolled over to a rollover IRA. And while an employee can convert a traditional IRA to a Roth IRA, income taxes must…