Are We Still Required to Suspend Deferrals Following a Hardship Distribution?

DWC | 12/11/18

Facts

I sponsor a 401(k) Plan for myself and my staff. I recently processed a hardship distribution for the purchase of my primary residence in October 2018.  I know the rules require me to suspend my deferral elections for six months following a hardship distribution, but I recently came across an article that said I don’t have to impose the suspension anymore.  I’d really like the opportunity to continue deferring if I am allowed.

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Q4 Pension Pontifications

DWC | 12/6/18

All of us here at DWC thrive on the really geeky stuff, and some of the best discussions start with our pontifications about how different topics impact our clients and our industry.  We decided to bring the best of those conversations to you, still with a touch of geekiness but also distilled into easily digested, bite-sized pieces.

This quarter we're taking a look at fraudulent distributions and breaking down what to expect from Washington in the coming months. (Crystal ball not included.)  - As originally published in our Q4 401(k) Q&A Update newsletter

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What is the Deadline to Deposit our Safe Harbor Matching Contribution?

DWC | 12/4/18

Facts

Our company sponsors a safe harbor 401(k) plan that provides a matching contribution equal to 100% of the first 4% each participant defers.  I had always thought that the deadline for us to deposit the match is the due date of our company tax return (with extensions), but my TPA mentioned something about a quarterly deposit requirement.

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Joe Nichols Joins DWC as Firm Actuary

DWC | 12/3/18

SAVANNAH, MO – December 3, 2018 –  DWC - The 401(k) Experts, an industry leader in providing 401(k) plan compliance, defined benefit services, consulting services and third-party plan administration, has hired Joe Nichols as the firm’s first in-house actuary.

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Are RMDs Required for a Retiree Turned Independent Contractor?

DWC | 11/27/18

Facts

We have an employee who attained age 70 ½ earlier in 2018 and will retire by the end of 2018. However, she has agreed to enter into a contract to provide services to our firm and will be reclassified as an independent contractor on December 1, 2018.

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Drama or Comedy: What's Your Holiday Film Favorite?

DWC | 11/20/18

Facts

Here at DWC we're getting into the holiday spirit. We've done our grocery shopping, prepped the pies and pulled out our eating pants. There's just one thing missing. 

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Breaking News: Hardship Distributions Becoming Even Less of a Hardship Than Previously Expected

DWC | 11/13/18

Nearly a year after Congress passed changes to the hardship distribution rules in the Bipartisan Budget Act and the Tax Cuts and Jobs Act, the IRS has published proposed regulations to fill in some of the details on how to implement the new rules. 

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Can We Suspend RMDs for a Rehire?

DWC | 11/13/18

Facts

We have a non-owner participant in our 401(k) plan who is age 74 and retired in 2014.  That means that he has already been taking required minimum distributions for the last few years. We just recently rehired him in October 2018. Now that he is re-employed he has inquired as to whether he can suspend his RMDs this year.

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Announcing a New Knowledge Center Experience

DWC | 11/8/18

At DWC we thrive on the really geeky stuff. We place a premium on research and choose to share that knowledge. A vast majority of our industry reads summaries of regulatory developments and trends for their clients’ knowledge. We actually read the laws, regulations and updates and write our own summaries in a manner that is easy to understand for our clients and their advisors.

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Can a Participant Get a Jump on RMDs & Start Taking Them a Few Months Early?

DWC | 11/6/18

Facts

One of the non-owner participants in our 401(k) plan will be turning 70 in April of next year (2019).  That means she will reach age 70 ½ in October and will need to start taking required minimum distributions.  The participant knows her first RMD is due no later than April 1, 2020, but she has asked whether she has to wait that long to actually withdraw the money. 

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The views expressed in this blog are those of the authors and do not necessarily represent the views of any other person or organization. All content is provided for informational purposes only and is not intended to be tax or legal advice.