In order to be eligible for our company’s 401(k) plan, employees must have worked for us for at least a year and be a minimum of 21 years old. They can join the plan on the next January 1st or July 1st following the date they meet those requirements. Recently, we discovered that we allowed an employee to start contributing to the plan before he met those requirements. He also received company matching contributions.
Corporate mergers and acquisitions can be stressful. When employees hear that their company is part of such a deal, they instinctively worry about their jobs. Even with reassurances that there's no need to worry about layoffs any time soon, employees should expect changes in their benefit plans, particularly their 401(k)s or other retirement savings plans. DWC Managing Partner Keith Clark highlights these changes in this article published by Kiplinger.
When certain employees terminate employment with our company, we agree to continue severance payments for a period of time after they leave. Some of these employees have asked us to continue withholding 401(k) contributions from their severance pay.
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ABC Company maintains a 401(k) plan that includes the following provisions:
In addition to regular compensation, ABC pays performance-based bonuses at the end of each calendar quarter.
While compiling the year-end census, it was noted that the overall deferral percentages did not appear quite right for certain employees based on their elections. On closer review, it was determined that employees who received quarterly bonuses did not have any 401(k) deferrals withheld from those amounts. With no deferrals withheld, ABC also did not make the corresponding matching contributions.
Our company has a safe harbor 401(k) plan. In addition to employees making deferrals, we make a company contribution equal to 3% of each person’s compensation. We deposit both types of contributions each pay period, so in theory at least, we should be all set by the end of each year. However, it seems that each year, our TPA comes back to us with adjustments that need to made. They tell us that it has something to do with how we determine compensation.
Our company has a 401(k) plan that provides a matching contribution equal to 100% of the first 4% that each employee contributes. We set it up that way to ensure that our highly compensated employees (HCEs) can maximize their salary deferrals at the limit (for 2018 the limit is $18,500 for those under age 50 and $22,500 for those age 50 or older). The HCEs are always looking for ways to contribute as much as they can. I’ve seen a few articles suggesting that “after tax” contributions allow that. We already permit Roth contributions to be made, but I thought they were subject to the same limit as pre-tax deferrals.
For more than a year bitcoin and other cryptocurrencies have been making headlines, and its skyrocketing value has investors asking when it will become an investment menu option for their 401(k) or other retirement savings plans. DWC Managing Partner Keith Clark answers that question in a article published on the Kiplinger website.
Someone would have to be living under a rock for the last year or so not to have noticed all the talk about Bitcoin and other cryptocurrency. The values have fluctuated quite a bit, but all the press makes it sound like cryptocurrencies are a great investment that can generate significant returns.
Our company’s workload fluctuates throughout the year with big spikes during the summer. As a result, we often hire seasonal workers who help us out during the busy times, but do not work during the regular workload months.
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