Phased retirement has become an increasingly popular trend lately. Along with its increased use, however, a number of questions have arisen. The IRS recently has issued guidance for determining the taxable portion of payments made to an employee during phased…
The DOL provides exemptions to the above broad fiduciary rule through “carve-outs.” For example, a person won’t be considered a fiduciary for providing the following investment advice: Statements or recommendations made to a “large plan investor with financialexpertise” by counterparties…
Well it’s that time of year again…time to dust off those participant files and prepare for the employee benefit plan audit season. As a firm who takes pride in our efficiencies with employee benefit plan audits, here are some tips…
As a plan sponsor, you have a fiduciary responsibility to ensure that your qualified plan complies with all current employee benefits laws and regulations and operates within the plan’s current provisions. Do you know if your plan is current? If…
On October 21, 2015, the Internal Revenue Service announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2016. In general, the pension plan limitations will not change for 2016 because the…
IRS makes changes to determination letter program Sponsors of individually designed qualified retirement plans will need to adjust to the idea of operating without the IRS’s official blessings when changing the plan document to comply with new laws and regulations.…
Earlier in 2015, the U.S. Supreme Court clarified the ongoing duty of retirement plan fiduciaries to monitor plan investments. Tibble v. Edison International has been percolating through the federal court system since 2007. The case focuses on the timing of…
How to use default deferral rates and auto-escalation clauses According to a Plan Sponsor Council of America survey, only 46% of defined contribution plans automatically enroll participants. The most common default deferral rate for those that do is 3%. Are…
The IRS clarified its rules for documentation of hardship withdrawals and participant loans on its website in 2015. With respect to hardship withdrawals, sponsors must retain: Documentation of the hardship request, review and approval, Financial information and documentation that substantiates…
As the turn of the calendar year nears, annual notices should be on the minds of most plan sponsors. For plans using the calendar year, numerous notices are due to be given in the next few months. Here are some…
ERISA’s disclosure rules require plan administrators to inform participants of circumstances that may cause a loss of benefits. But just what counts as a disclosure? This question was recently litigated in the U.S. District Court for the Eastern District of…
Plan record retention requirements As far as the IRS is concerned, you can’t save too many retirement plan documents. Plan sponsors, on the other hand, might reasonably feel the need to free up file storage space every now and again…
Plan documents generally control all aspects of a qualified retirement plan. Whether the plan document invalidates the language in other forms, such as a written beneficiary designation form, can lead to disagreement. Recently, the U.S. Court of Appeals for the…
Most everyone in the employee benefits industry agrees: protecting retirement plans and their participants from investment advisors who may focus more on their own financial interests than those of plan participants is a good idea. However, whether the Department of…
How rollovers to your plan can benefit everyone High workforce mobility means that many employees leave a collection of “orphan” 401(k) plan balances in their wake. As a plan fiduciary, why should you care? Helping new employees roll over their…
Earlier this year, the Pension Benefit Guaranty Corporation (PBGC) announced several changes affecting defined-benefit pension sponsors in 2015, including changes to annual premium rates and scheduling. Sponsors of qualified defined-benefit plans subject to ERISA’s plan termination insurance rules must file…
It’s time to ask Maintaining data security is a significant part of running any business. Breaches are inevitable — although not at every organization. Now is the time to ask your service providers about their data security. Ask the right…
According to the Employee Benefit Research Institute, more than one-fifth (or 21%) of all 401(k) plan participants eligible for loans have loans outstanding at any given time. Looking out for the best interests of your plan participants might involve discouraging…
To clarify its plan audit process, the IRS recently updated the guidance it offers to plan sponsors. Even though the guidance is fairly general, it’s helpful for all plan administrators and sponsors to review. Let’s take a look at some…
