A blog by Pete D’Angio, CFP, CRPS, National Director, Not-for-Profit Markets, Pentegra Retirement Services – November 21, 2016 Small to mid-size plan sponsors have for years been simplifying their 401(k) plan oversight by merging their plan into a Multiple Employer Plan (MEP), a retirement plan…
…for the 2022 plan year. Technically, it is a simplified mechanism for filing a single Form 5500 information return for a collection of defined contribution plans that have the same overall set up. If you are thinking Multiple Employer Plan (MEP) or Pooled Employer Plan…
…is a retirement plan. Today, with unemployment trending lower, wage growth is picking up. This is good news for job candidates. Employers have positions to fill, which also means that workers now have leverage, confidence and options. For organizations competing for job candidates, a comprehensive…
…any calendar year for which the plan is deemed disqualified. IRS Example: Pat is a participant in the XYZ Profit Sharing Plan. The plan has immediate vesting of all employer contributions. In calendar year one, the employer makes a $3,000 contribution to the trust under…
…them over to an individual retirement account or another employer’s retirement plan. Distributions generally are taxable to the recipients in the year they are received. For Employers If your retirement plan is disqualified, your deductions for contributions to the plan could be restricted and delayed….
…employer provided allocations and investment earnings. Cost Control. Cash balance plans tend to reduce pension costs because benefit targets are based on current salary rather than projected final average salary. Employers typically find they can get “more for less” by providing a more easily understood…
No question, keeping a retirement plan in compliance with tax and pension law requirements can be challenging for employers. Since mistakes in plan administration are not unusual — and can be costly if uncovered in a government audit — it’s smart for employers to review…
…the wayside in most industries, with a shift toward the defined contribution plan like the 401(k), which revolutionized saving for retirement when it was enacted into law in 1978. The 403(b) savings plan, the individual retirement account (IRA) and Roth IRA, the multiple-employer plan (MEP)…
…a new copy of the SPD must be distributed every 10 years. Can the SPD be sent electronically to participants? If certain requirements are met, employers may furnish the SPD using electronic media, such as the Internet, an intranet, or e-mail. However, employers should ensure…
“Set it and forget it” might be the approach that many participants prefer to take when it comes to their retirement plan account, but for employers such an approach can be extremely limiting – or even detrimental. As with most components of a successful business,…
…wage (where supply equals demand), there will be a surplus of workers and employers may have to cut back on hours and/or employees; and (b) if employers cannot pass on the higher costs to consumers, they may be forced to reduce employment. Minimum wage advocates…
…a number of ways. Small local businesses can join together in order to offer retirement plans for their workers, in what is known in the industry as a MEP (Multiple Employer Plan) – something that can save time and money for the company while benefiting…