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10/22/24

DWC | 10/22/2024

How to Determine Eligibility for Your 401(k) Plan

Companies that sponsor retirement plans have a great deal of flexibility in determining who is eligible for those plans. However, since plans are always required to follow the terms outlined in the ...

DWC | 10/22/2024

How to Calculate Years of Service in your Retirement Plan

One of the most fundamental requirements in managing a qualified retirement plan is counting an employee’s length of service. It is the basis for determining such items as plan eligibility, ...

DWC | 10/22/2024

How to Allocate Profit Sharing Contributions

Many retirement plans are designed to include a feature that allows the plan sponsor to make a profit sharing contribution each year. Since IRS rules allow the contribution to be discretionary ...

DWC | 10/22/2024

How Long Must We Store our 401(k) Records?

Employee Benefit Plan Record Retention

DWC | 10/22/2024

How Does My Investment Professional Get Paid?

DWC | 10/22/2024

Historic DOL Enforcement Results

The Employee Benefits Security Administration (EBSA) is the division of the Department of Labor (DOL) that is responsible for ensuring the integrity of the private, employment-based benefit system. ...

DWC | 10/22/2024

Hardship Distributions

Plan sponsors have the option to allow participants to access their accounts while still employed via a plan loan or an in-service distribution. However, some companies prefer to limit that access so ...

DWC | 10/22/2024

Getting Mergers and Acquisitions Right for your 401(k) Plan

Congratulations! You’re buying (or selling) a company! Call your lawyer; call your accountant; call your…third party administrator? With all the hullabaloo surrounding this kind of transaction, the ...

DWC | 10/22/2024

Form 8955-SSA FAQs

What information is required to be reported on the Form 8955-SSA? The form requires the plan sponsor to report any participant who terminated in a prior year and is still due a vested benefit from ...

DWC | 10/22/2024

Form 5500 FAQs

The Form 5500 is an information return that is filed, usually with the Department of Labor, each year to provide certain details about the operations and financial status of an employee benefit plan. ...

DWC | 10/22/2024

Form 5330 FAQs

What is form 5330? The Form 5330 has one job – to accompany remittances of certain excise taxes that are associated with qualified retirement plans and 403(b) plans.

DWC | 10/22/2024

Fiduciary Duties & Due Diligence 101

Understanding what it means to be a retirement plan fiduciary is simultaneously very simple and quite complex. An attorney we know gave this very simple explanation about how plan fiduciaries should ...

DWC | 10/22/2024

Fidelity Bonds FAQ

What is a fidelity bond? Also known as a surety bond, a fidelity bond is a special type of insurance that protects a company-sponsored retirement plan from losses due to misuse or misappropriation of ...

DWC | 10/22/2024

eBook: How to Select Retirement Plan Service Providers

Are you a Plan Sponsor? Then it's your fiduciary duty to hire and oversee the industry service providers for your plan. Hopefully your current selection criteria is not limited to out-of-pocket costs ...

DWC | 10/22/2024

Don't make these Compensation Errors in Your Retirement Plan

According to the IRS, using incorrect compensation amounts to calculate retirement plan benefits and conduct annual compliance testing is one of the most common errors they see. How can such a ...

DWC | 10/22/2024

Determining Plan Eligibility for your Non-Full-Time Employees

USA Today recently ran an article describing how many companies are using alternative work arrangements to adapt to an ever-changing business environment. Some may rely on more part-time workers, ...

DWC | 10/22/2024

Deposit Deadlines for 401(k) Deferrals

Both the Internal Revenue Service (IRS) and the Department of Labor (DOL) consider it a top priority to make sure that contributions employees make to their 401(k) and 403(b) plans are deposited on a ...

DWC | 10/22/2024

Deposit Deadline for Company Contributions

The deadline for depositing employee salary deferrals into the plan is relatively straightforward; however, the same cannot be said for company contributions such as matching and profit sharing ...

DWC | 10/22/2024

Cycle 3 DC Plan Restatement Resources

Every 6 years or so, the IRS requires the vast majority of company-sponsored retirement plans to update their plan documents through a process called "restating" the document. For 401(k) and other ...

DWC | 10/22/2024

Cycle 3 DC Plan Restatement FAQs

DWC | 10/22/2024

Everything You Want to Know about QDRO

Very few employers have any desire to get caught in the middle of the divorce proceedings of their employees; however, when company retirement benefits become part of the negotiations, unsuspecting ...

DWC | 10/22/2024

Corporate Structure and M&A 101

Retirement plans such as 401(k), 403(b) and defined benefit plans are employer-sponsored arrangements in that employers sponsor them for the benefit of their employees. That means it is important to ...

DWC | 10/22/2024

Compliance Deadlines for Calendar Year Plans

January 31 | Forms 1099-R to the Participants The custodian/directed trustee of the plan generally delivers the 1099-Rs directly to the participants. Note that some custodians deliver the 1099-R ...

DWC | 10/22/2024

Cash Balance Plans 101

You are currently maximizing the contributions to your 401(k) profit sharing plan. While this level of savings is beneficial, you still want to be able to save more, plus you are looking for ...

DWC | 10/22/2024

Cash Balance Plan Basics Webinar on Demand

Everything You Want To Know About Cash Balance Plans But Are Too Afraid to Ask

DWC | 10/22/2024

Cash Balance Chart

DWC | 10/22/2024

Attribution of 401(k) Plan Ownership FAQ

Although the notion of company ownership seems relatively straight-forward, Congress was concerned that companies could use “creative” ownership structures to avoid certain laws. As a result, they ...

DWC | 10/22/2024

401(k) vs 403(b): What is the Difference?

The last few years have brought significant changes to the 403(b) world. The IRS' first update to the regulations in more than 40 years directly imposed new plan document and oversight requirements, ...

DWC | 10/22/2024

401(k) Plan Loan Guide

Twenty Questions: Retirement Plan Loan Style

DWC | 10/22/2024

401 (k) Beneficiary Designations Primer

Thousands of plan sponsors surveyed … the top two answers are on the board. Name two sensitive subjects you would prefer to avoid getting stuck in the middle of with your employees. Ready, go!

Jen Swets | 12/11/2023

New Distribution Options to Encourage Savings

Adam C. Pozek | 11/27/2023

It’s About Time – Long Term, Part Time Employees – Part 2

Adam C. Pozek | 11/27/2023

It’s About Time – Long Term, Part Time Employees – Part 1

Sue Schnur | 11/13/2023

Grab Bag of RMD Changes

DWC | 11/2/2023

The 2024 Retirement Plan Contribution Limits

Extra! Extra! The IRS has released the 2024 contribution limits.

Carter Kimball | 10/17/2023

Cash Out Limit is Movin' On Up

Haden McDonald | 10/12/2023

Trust But Verify...But Not For Hardship Distributions

Adam C. Pozek | 07/13/2023

The New Eligible Inadvertent Failure: A “Catch-Most” for Self-Correcting Plan Errors

Adam C. Pozek | 02/24/2023

Finding Balance with Form 5500

It’s rare that updates to the Form 5500 warrant little more than a yawn, if anyone other than those who prepare the forms even notice. That is NOT the case with changes issued by the Department of ...

Adam C. Pozek | 02/6/2023

Automatic (Enrollment) for the People - Losing Your Discretion

Ever since creating the ACA, EACA, and QACA as part of the Pension Protection Act of 2006, Congress has acted like automatic enrollment is the greatest thing since sliced bread when it comes to ...

Adam C. Pozek | 02/2/2023

Catch-Up Contributions: If It Ain’t Broke, Break It!

Adam C. Pozek | 02/02/23 Yeah, we know that’s not how the saying goes, but it appears Congress doesn’t.

Adam C. Pozek | 01/31/2023

Roth, Roth and More Roth – as Far as the Eye Can See

Congress seems to be in a continual love fest with two retirement concepts – automatic enrollment and Roth contributions – and SECURE 2.0 (S2) continues the trend for both. I guess it’s not ...

Jen Swets | 01/25/2023

SECURE 2.0’s New & Improved (But Really Math-y) Tax Credits for Startup Plans

SECURE 2.0 (S2) took the tax credits of OG SECURE and enhanced them, particularly for plans with fewer than 50 employees. And if you think “enhanced” sounds a bit loaded, you’re right; credits have ...

Adam C. Pozek | 01/12/2023

SECURE 2.0 Overview Post

You have likely already heard and read plenty about SECURE 2.0, signed into law on December 29, 2022. Rather than write yet another recitation of what’s in the new law in chronological order, we are ...

DWC | 10/21/2022

The 2023 Retirement Plan Contribution Limits

Extra! Extra! The IRS has released the 2023 contribution limits. In past years we would list only the limits that changed. With almost everything changing at historic levels, we have provided a few ...

DWC | 10/21/2022

DWC - The 401(k) Experts Announces Tianna Schulz as Firm Partner

National 401(k) Consultancy Expands Partnership with Tianna Schulz promoted to Partner Virginia Beach, VA – October 21, 2022 - DWC - The 401(k) Experts, an industry leader in providing 401(k) plan ...

DWC | 05/16/2022

DWC in Investment News: Bitcoin Too Risky for 401(k)s Part II?

"Before Fidelity made its move, the Department of Labor had sent a warning about using crypto in retirement accounts. In March, the agency issued a compliance assistance release cautioning retirement ...

Adam C. Pozek | 03/31/2022

Secure 2.0 - Don't Count Your Chickens Before They Hatch

Earlier this week, the House of Representatives passed SECURE 2.0. The bill (actual name is Securing a Strong Retirement Act of 2022) passed by the nearly unanimous margin of 414 to 5. It doesn’t get ...

DWC | 12/2/2021

DWC Selected as TPA for Franklin Templeton Retirement Group Plan Solution with Transamerica

Transamerica has been selected by Franklin Templeton as the recordkeeper for a new retirement plan solution. The Franklin Templeton Group Plan Solution is offered exclusively through Franklin ...

DWC | 08/24/2021

Step Aside 3(16) – the 402(a) Fiduciary Is The New Flavor of the Week

In the color-by-numbers world of retirement plan fiduciaries, the 3(21) was the first one on the block, followed quickly by the 3(38). Then came the 3(16), widely sold as the silver bullet that would ...

DWC | 08/19/2021

“Cover Me” with the Pension Benefit Guaranty Corporation

Welcome back to Cash Balance Corner (CBC) after a brief summer hiatus. We thought you deserved a break after all the math we threw at you in the last few entries. This is the 15th installment for ...

DWC | 07/29/2021

The Mega Backdoor Roth…Here We Go Again

Every year, the financial press seems to write about the so-called Backdoor Roth and Mega Backdoor Roth strategies in 401(k) plans, and this year is no exception. (Maybe the Super Duper Mega Backdoor ...

DWC | 06/17/2021

When Is the Best Time to Set Up a Safe Harbor 401(K) Plan?

Facts We have been thinking about setting a safe harbor 401(k) plan and have heard that there are some pretty stringent timing requirements depending on some of the provisions we select.

DWC | 05/6/2021

Designing Your 401(k) Plan for Combined Testing

Thousands of 401(k) plans are designed each year to promote savings in the most cost-effective manner. Most are established as stand-alone plans and will remain that way for their entire existence. ...

DWC | 04/29/2021

IRS Enforcement Initiatives: It’s Not Paranoia If They’re Really After You

DWC | 04/15/2021

2020 Retirement Plan Tax Deductions - It's Not Too Late

DWC | 04/8/2021

Nondiscriminatory Benefit Amounts - Treat Me Right

Outside the complex world of qualified plans, the term “nondiscrimination” can take on many different meanings based on many different points of view. Fortunately, in the qualified plan world, the ...

DWC | 03/25/2021

Will Moving My Company Ownership Into a Trust Impact Our 401(K) Plan?

Facts I’ve been working with my personal attorney and financial advisor on some estate planning. and one item I’m considering is placing some of my assets, including my company ownership, in a trust. ...

DWC | 03/18/2021

Interesting Compliance Scenarios - 2021 Edition

Minimum Plan Participation - Cash Balance Corner

DWC | 03/11/2021

Minimum Plan Participation - With or Without You

Sponsoring a retirement plan can provide significant benefits to a company (and its participants). But with great benefits comes great responsibility…responsibility to follow all of the various ...

DWC | 03/4/2021

2020 DOL Enforcement Stats: Is the Glass Half Full or Half Empty?

From the Hot Seat to a Fireside Chat This week, we are bringing the heat in two completely different ways. Receiving notification that the Department of Labor is about to pay a visit to investigate ...

DWC | 02/25/2021

Can I Convert a Coronavirus-Related Distribution to a Roth IRA?

Facts We added Coronavirus-Related Distributions (CRDs) to our 401(k) plan in 2020, and a number of our participants availed themselves of the new feature. I know they have the option to pay any ...

DWC | 02/18/2021

MEP, PEP, or Stand Alone Plan, Which Is the Best Fit for Your Company?

Nondiscrimination Testing Creates Career Opportunities

DWC | 02/11/2021

Nondiscrimination Testing Creates Career Opportunites

Sponsoring a retirement plan can provide significant benefits to a company (and its participants). But with great benefits comes great responsibility…responsibility to follow all of the various ...

DWC | 02/2/2021

Why Does My Year-End Census Require Ownership and Family Information?

Facts We’ve compiled our year end census information, and we are now turning out attention to the accompanying questionnaire. I’m being asked for additional information such as ownership percentages, ...

DWC | 01/28/2021

Anticipating a New Hire - You Might Change Your Mind

Sponsoring a retirement plan can provide significant benefits to a company (and its participants). But with great benefits comes great responsibility…responsibility to follow all of the various ...

DWC | 01/22/2021

DWC The 401(k) Experts Partner Joe Nichols Announced as ARA President

National 401(k) Consultancy is Proud to Announce Joe Nichols as President of the ARA ST PAUL, Minn. – January 21, 2021 - The American Retirement Association (ARA) has named Joe Nichols, ASA, EA, MSPA ...

DWC | 01/19/2021

Which Financial Details Do I Have to Include on my Year-End Census?

Facts Last week, you explained some the demographic data points that get reported on the annual census. Now, I’ve got some questions on the financial information I’ve been asked to provide to my TPA. ...

DWC | 01/12/2021

Which Employees Do I Have to Report on my Year-End Census Report?

Facts As for so many companies, the end of one year and the start of the next are especially busy times. And, without fail, we’ve already received the request for our annual census data from our ...

DWC | 12/15/2020

DWC's "How Do You Holiday?" Survey

Facts We're getting in the holiday spirit here at DWC, but we've noticed that there are a lot of differing opinions on how to holiday around here. We've settled some important debates with past ...

DWC | 12/8/2020

CARES Act Relief for Retirement Plan Loan Payments is Ending, Now What?

Facts Earlier this year, we implemented the coronavirus relief provisions that allowed our participants to suspend loan payments for the remainder of 2020. As a result of reduced hours and other ...

DWC Cash Balance Corner: Adding an Employee to Your Cash Balance Plan

DWC | 12/3/2020

Adding an Employee to Your Cash Balance Plan? You Should be Thinking This Article is "Just What I Needed"

Sponsoring a retirement plan can provide significant benefits to a company (and its participants). But with great benefits comes great responsibility…responsibility to follow all of the various ...

DWC In the News: DWC Announces Joe Nichols as Firm Partner

DWC | 12/2/2020

DWC - The 401(k) Experts Announces Joe Nichols as Firm Partner

National 401(k) Consultancy Expands Partnership with Joe Nichols promoted to Partner KANSAS CITY, MO – December 1, 2020 - DWC - The 401(k) Experts, an industry leader in providing 401(k) plan ...

DWC 401(k) Q&A: Will Irregular Compensation in 2020 Impact Your Retirement Plan?

DWC | 12/1/2020

Overtime Is Up and Bonuses Are Down: Will This Year's Irregular Compensation Impact our Retirement Plan?

Facts We sponsor a 401(k) plan for our employees and provide a company matching contribution to those who defer. Our plan specifies that in calculating that match, we only consider employee base pay ...

DWC | 11/24/2020

DWC's Thanksgiving Dinner Prep Playlist

Facts All year long we've been leaving little rock 'n' roll Easter eggs in our Cash Balance Corner feed. ICYMI: Each post title incorporates one of our favorite songs. And for our 20th century rock ...

DWC 401(k) Q&A Question of the Week: Impact of Furloughed Employees on Retirement Plan at Year-End

DWC | 11/17/2020

How Do Furloughed Employees Impact Our Plan at Year-End?

Facts Like many businesses, we had to furlough some employees earlier this year in response to the coronavirus shutdowns. We’ve been fortunate enough to bring back a few of these employees, but a ...

DWC 401(k) Q&A Question of the Week: Plan Design Options to Consider as Part of the Mandatory Cycle 3 Plan Document Restatement

DWC | 11/10/2020

Are There Plan Design Options We Should Consider as Part of the Mandatory Cycle 3 Plan Document Restatement?

Facts We’ve been following your recent posts about how making even small changes to certain plan provisions can make managing the plan easier without sacrificing our objectives. Making life easier, ...

DWC's Cash Balance Corner: Cash Balance Plan Compliance

DWC | 11/5/2020

Cash Balance Compliance: "Takin' Care of Business"

Wow! We have covered a lot of ground over the last few entries, learning about how cash balance benefits are earned and funded. So far, our plan sponsor Robert Smith, Inc. has dealt with the ...

DWC 401(k) Q&A: Counting Hours of Service for Retirement Plan Eligibility

DWC | 11/3/2020

Does Counting Hours of Service for Plan Eligibility Have to be a Nightmare?

Facts We’ve been following along with the last few Questions of the Week and think we’re pretty comfortable with how we want to set up eligibility for our 401(k) plan. We’re definitely looking to ...

DWC 401(k) Q&A Question of the Week: One-Year Eligibility

DWC | 10/27/2020

What's the Simplest Way to Set Up a One Year Eligibility Waiting Period for our 401(k)?

Facts We are looking to set up a 401(k) plan for our company. Our workforce includes both hourly and salaried employees as well as full-time, part-time, and seasonal workers. For now, we really want ...

DWC News Update | 2021 Contribution Limits

DWC | 10/26/2020

The 2021 Retirement Plan Contribution Limits

Extra! Extra! The IRS has released the 2021 contribution limits. Since not everyone was awaiting them quite as eagerly as we were, here is a quick summary.

Cash Balance Corner: Prefunding Your Cash Balance Plan

DWC | 10/22/2020

How to "Push It" (But Not Too Much) by Prefunding Cash Balance Plans

Thanks to the last few CB Corner entries, we now know that our plan sponsor Robert Smith, Inc. has a wide range of options when it comes to making contributions to its cash balance plan.

DWC 401(k) Q&A: Simplifying Plan Eligibility Determinations

DWC | 10/20/2020

How Can We Tweak Our Plan's Eligibility Requirements to Make Administration Easier?

Facts We’ve sponsored our 401(k) plan for several years now, and it’s been very well-received by our employees. Believe it or not, though, one of the biggest challenges we have had is around when ...

DWC 401(k) Q&A: Adding Flexibility to Profit Sharing Contributions

DWC | 10/13/2020

How Can We Add More Flexibility to our Standard Profit Sharing Contributions?

Facts We have made profit sharing contributions each year, and we plan to continue to do so every year that our financial situation allows. Historically, we have contributed the same percentage of ...

DWC Cash Balance Corner - Maximum Contributions and Tax Deductibility

DWC | 10/8/2020

Maximum Contributions: Additional "Opportunities"

In our last episode, we mentioned we would move on to developing an ideal funding policy. Before doing so, we realized there is one more aspect of the maximum allowable contribution we need to cover ...

DWC 401(k) Q&A Question of the Week: Tweaking Your 401(k) to Allow Additional Accessible Savings

DWC | 10/6/2020

Can We Tweak our 401(k) to Allow Additional Savings for Reasons More Immediate than Retirement?

Facts Our company takes a holistic approach to the benefits we offer. We want our employees to have access to benefits that assist them with their overall financial security. We offer several health ...

DWC 401(k) Q&A Question of the Week: New Limitations on Discretionary Matching Contributions

DWC | 09/29/2020

Are Discretionary Matching Contributions Becoming a Little Less...Discretionary?

Facts My company has sponsored a 401(k) plan for many years, and it provides for a discretionary matching contribution. I’ve always sought to build in as much flexibility as possible, so having ...

DWC | 09/24/2020

Pension Pontifications | Q3 2020

Over the last several months we’ve been in touch quite a bit to keep you up to date on the many changing regulations occurring in the industry as legislators work to react to current events and ...

DWC 401(k) Q&A Question of the Week: Adding Safe Harbor Provision, Maintaining Contribution Cost Flexibility

DWC | 09/22/2020

Can We Add a Safe Harbor Provision While Maintaining Flexibility in Contribution Costs?

Facts We currently sponsor a 401(k) plan and have been debating adding a safe harbor provision for 2021. While the idea of buying our way out of the ADP/ACP tests is appealing, we’re nervous about ...

DWC 401(k) Q&A Cash Balance Corner: Calculating Maximum Contributions

DWC | 09/17/2020

Maximum Contributions: "Everybody Wants Some"

Let’s do a little recap. In the last two installments, we discussed what Robert is required to contribute (the Minimum) to his cash balance plan and what he should contribute (the Recommended). Now, ...

DWC | 09/15/2020

Can a Former Employee Roll a Coronavirus-Related Distribution Back into our Plan?

Facts Earlier this year, we decided to make the CARES Act coronavirus-related distributions (CRDs) available to participant in our 401(k) plan. We know that it is possible for participants to repay ...

DWC 401(k) Q&A Cash Balance Corner: Calculating Recommended Contributions

DWC | 09/3/2020

"Complete Control" with Recommended Contributions

Congratulations on making it through our last installment and to this one. We typically do not like to get that deep into the weeds, but hey, this is actuarial stuff after all, and you can’t always ...

In the News: DWC Announces Jamelle Moody as Principal

DWC | 09/1/2020

DWC - The 401(k) Experts Announces Jamelle Moody as Principal

HOUSTON, TX. – September 1, 2020 - DWC - The 401(k) Experts, an industry leader in providing 401(k) plan compliance, defined benefit services, consulting services and third-party plan administration ...

DWC | 09/1/2020

Is There an "Easy Button" for Setting Up a New Retirement Plan?

Facts As a small business owner, I’m constantly looking for cost-effective ways to improve the benefits I offer my employees. My industry is a competitive one, and it’s important to me to have a ...

DWC | 08/27/2020

Your Definition of Compensation Isn't in the ERISA Dictionary? We've Got a Fix for That.

Getting creative with the plan’s definition of compensation can be an effective way to target benefits, budget your benefit dollars, and maintain consistent benefit levels from year to year. However, ...

DWC 401(k) Q&A: How Can I Minimize my Risk When Reviewing and Approving a Hardship Withdrawal?

DWC | 08/25/2020

How Can I Minimize my Risk When Reviewing and Approving Hardship Withdrawals?

Facts As a plan sponsor, I want my employees to have access to their retirement accounts in the event of a financial emergency. I know that offering hardship withdrawals could satisfy that goal, but ...

DWC | 08/20/2020

One and One Makes Five: Calculating the Minimum Required Contribution

In our last episode, we showed how the cash balance benefit for our owner, Robert Smith, accumulates over time. In our Perfect World (no offense Huey!), Robert contributes exactly $100,000 to the ...

DWC 401(k) Q&A Question of the Week: Which Common Plan Fees Can (& Should) We Pay from Plan Assets?

DWC | 08/18/2020

Which Common Plan Fees Can (and Should) We Pay from Plan Assets?

Facts We are reviewing our company expense budget to identify any that we can eliminate or reduce. We’ve read that it is possible to pay expenses related to maintaining company retirement plans out ...

DWC | 08/13/2020

DWC Celebrates the Success of its Summer 2020 Intern Consultants

DWC is honored to announce its 2020 intern consultants as they complete their final stage of the DWC University Intern Program.

DWC | 08/11/2020

What Are My Options (and Deadlines) for Implementing a Retirement Plan This Year?

Facts We’ve been debating implementing a 401(k) plan for 2020. After much back and forth, we’ve decided its “a go!” for this year. Since we are still in a more relaxed summer vacation mode, we’d like ...

DWC | 08/6/2020

Cash Balance Contributions: Definitely Not "Money for Nothing"

In our last installment, we took a look at the different ways to define the contribution credits in a cash balance plan. For Robert Smith, the owner and only employee of Robert Smith, Inc., the ...

DWC | 08/4/2020

Can We Offer Additional Matching Contributions Without Losing our Safe Harbor Status?

Facts We currently sponsor a 401(k) plan for our company. While we certainly want to be able to provide meaningful benefits to the owners, our goal is to encourage all our employees to save more for ...

DWC - The 401(k) Experts Hires Jacki Betz as Director of Business Development

DWC | 07/30/2020

Jacki Betz Joins DWC as Director of Business Development

MIAMI, FL. – July 30, 2020 – 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 ...

DWC | 07/28/2020

Can We Offer Higher Profit Sharing Contributions to Employees Based on Performance?

Facts We’ve had a 401(k) plan for years, but we are now looking at ways to make it a more strategic part of our overall compensation package. In one of your previous Questions of the Week, you ...

DWC | 07/23/2020

Just Can't Get Enough...Savings from your 401(k) Plan

Now that we know the basics, we can apply our knowledge to (almost) real life scenarios. We will follow our fictitious company: Robert Smith, Inc., an S-corporation with no employees other than the ...

DWC | 07/21/2020

Can We Increase Profit Sharing Contributions and Decrease Salaries to Improve Testing and Save Money?

Facts We want to make job offers to some new employees and are looking strategically at our overall compensation package. Some of these candidates are seeking upwards of $130,000 which will make them ...

DWC | 07/14/2020

Must I Complete the Upcoming Mandatory Plan Document Restatement Before Terminating My Plan?

Facts I currently sponsor a 401(k) plan for my employees. As I start to consider retirement myself and eventual dissolution of the business, I’m compiling a list of all the things I need to do to ...

DWC | 07/9/2020

Defined Benefit vs. Defined Contribution: A Cash Balance Plan Primer

Welcome to Cash Balance Corner! We've created this bi-monthly column to teach you everything you need to know about defined benefit and cash balance plans in order to help you make the best possible ...

DWC | 06/29/2020

DWC News Update | eDisclosures: Initial Notice and Notice of Internet Availability

Welcome to the exciting conclusion of our foray into the brave new world of eDisclosures. Today, in our final look at the DOL’s new eDisclosure ruling, we will breakdown the Initial Notice and the ...

DWC | 06/25/2020

Pension Pontifications | Q2 2020

Get ready for the “PEP as panacea” pitch to the small plan marketplace (think low cost, highest quality services, coolest technology, least risk, etc.). We’ve already seen one promoter using the ...

DWC 401(k) Q&A: 401(k) vs. 403(b) - Which Is the Best Plan Design for My Non-Profit?_Retirement Plan Design

DWC | 06/23/2020

401(k) vs 403(b): Which Is the Best Choice for My Non-Profit?

Facts As the director of a not-for-profit organization, I’m looking at retirement plan options for our employees. The fiscal year ends June 30th and I’d love to implement something to benefit our ...

DWC | 06/16/2020

Do We Have to Provide New Paperwork When a Participant Requests a Second Distribution?

Facts When a participant requests a distribution from our plan, I provide them with a with a package that includes an election form and a bunch of other information. A participant who terminated and ...

DWC In the News: eDisclosures Covered Documents

DWC | 06/15/2020

DWC News Update | eDisclosures: Covered Documents

The Department of Labor’s new rules that expand the electronic distribution of plan-related notices is a long-overdue and welcome change. We have provided a summary of the new eDisclosure rules and ...

DWC 401(k) Q&A: Do We Have to Consider Pay Before a Participant is Eligible When Calculating Company Matching Contributions?

DWC | 06/9/2020

Do We Have to Consider Pay Before a Participant is Eligible When Calculating Matching Contributions?

Facts Each year, after our last payroll in December, I submit my census information to the TPA for our 401(k) plan. Even though I’ve looked at each participant’s total deferrals for the year to ...

DWC In The News: eDisclosures: A Deep Dive into Electronic Addresses and Internet Websites

DWC | 06/8/2020

DWC News Update | eDisclosures: A Deep Dive into Electronic Addresses and Internet Websites

Although the Department of Labor’s new ruling on electronic disclosures doesn’t officially go live until the end of next month, it is already breathing new life into some fairly antiquated-sounding ...

DWC | 06/2/2020

Who Signs Our Form 5500?

Facts The person in our office who handles many of our administrative functions, including those related to our 401(k) plan, will be retiring soon, so we’re reviewing many of our internal processes ...

DWC In The News: DOL Publishes New eDisclosure Rules

DWC | 05/29/2020

DWC News Update | New eDisclosure Rules: Maybe This Whole Internet Thing is Going to Stick

Just before Memorial Day weekend, the Department of Labor published rules allowing plan sponsors to set electronic media as the default method to provide plan information to participants. At more ...

DWC 401(k) Q&A Correction of the Quarter: Retroactively Decided Not to Make Safe Harbor Contributions for HCEs?

DWC | 05/28/2020

Retroactively Decided Not to Make Safe Harbor Contributions for Your HCEs? We've Got a Fix (or Two) for That!

If you’ve been with us for a while you’ve heard us say a few things time and again. First, the rules and regulatory agencies do not allow plans to disproportionately favor highly compensated ...

DWC | 05/19/2020

Should We Make Up for Earnings Lost as a Result of a Delayed Distribution?

Facts Over the past several months, our turnaround times for normal business processes have lagged somewhat as we have adjusted operations in response to the various stay-at-home orders. When ...

DWC | 05/12/2020

How Much Fidelity Bond Coverage Are We Required to Have?

Facts We are in the process of reviewing all our various business insurance policies to determine which ones we need to keep, update, or eliminate. One the coverages on our review list is the ...

DWC | 05/5/2020

What Retirement Plan Filings and Records Must We Keep?

Facts We’ve sponsored a 401(k) plan since 2002 and the amount of paperwork and related records we’ve accumulated is incredible. Cleaning up these records has always been on my to-do list for a while, ...

DWC 401(k) Q&A Question of the Week: Can We Plan Plan-Related Expenses Out of Plan Assets?

DWC | 04/28/2020

Can We Pay Plan-Related Expenses Out of Plan Assets?

Facts Like many businesses, we’ve been watching our cash flow carefully over the past several weeks. We’re making adjustments where necessary so that we can stay on top of the invoices we receive ...

DWC | 04/21/2020

Should We Include Government-Mandated Coronavirus PTO When Calculating Company Contributions?

Facts We have several employees who have had to take time off from work either because of a loss of childcare or to care for affected family members due to the coronavirus. As a result of recent ...

DWC | 04/16/2020

The CARES Act Weekly Update | 4.16.2020

As the conversations surrounding CARES Act provisions continue to evolve, we are constantly updating our FAQs to provide the most in-depth and up to date information. This week, as a result of a lot ...

DWC 401(k) Q&A: Is There Any Coronavirus Relief for Participants Who Want to Postpone Loan Payments?

DWC | 04/14/2020

Is There Any Coronavirus Relief for Participants Who Want to Postpone Plan Loan Payments?

Facts Several participants in our 401(k) plan currently have outstanding plan loans, and many others are looking to initiate them. However, given the current pandemic, many participants are concerned ...

DWC | 04/9/2020

The CARES Act Weekly Update | 4.9.2020

This week we took a deeper look into participant's self-certification that they are eligible for relief under the Act, as well as the option some service providers are taking to automatically ...

DWC 401(k) Q&A Question of the Week: How Does the CARES Act Expand Availability of Plan Loans?

DWC | 04/7/2020

How Does the CARES Act Expand the Availability of Retirement Plan Loans?

Facts Our 401(k) plan allows participants access to their accounts via hardship distributions and, for those at least age 59 ½, via in-service withdrawals. But with the economic uncertainty of the ...

DWC | 03/31/2020

Can We Allow a Distribution for a Coronavirus-Related Hardship?

Facts Some of our employees are dealing with financial challenges due to the coronavirus situation, and they are asking whether they can access their 401(k) accounts. Our plan allows for loans and ...

DWC | 03/30/2020

DWC News Update | The CARES Act: Federal Coronavirus Relief

On Friday afternoon, March 27th, Congress passed, and the President signed, the Coronavirus Aid, Relief, and Economic Security (CARES) Act - sweeping legislation intended to provide much-needed ...

DWC | 03/26/2020

How Do We Stop Our Discretionary Matching Contribution?

Facts My company sponsors a 401(k) plan that provides for a discretionary matching contribution, which we deposit each pay period along with employee deferrals. Given the economic uncertainty, I’m ...

DWC | 03/24/2020

Can We Suspend our Safe Harbor Contribution Mid-Plan Year?

Facts Given the current uncertainty in the world economy and the unknown ongoing affects of coronavirus, I’m looking at all financial obligations for our company, and for opportunities to reduce ...

DWC | 03/17/2020

How Can We Create More Flexibility in our Cash Balance Plan Contributions?

Facts We are considering adopting a new cash balance plan. We really like the higher contribution amounts, but we keep hearing that the contributions are fairly rigid and inflexible.

DWC | 03/13/2020

When the Grass Isn't Greener with More Plans, There's a Fix for That!

In our last Correction of the Quarter, we looked at related companies setting up different types of plans for their respective employees and noted that this sort of structure isn’t “necessarily” a ...

DWC | 03/10/2020

We Can't Find our Signed Plan Document, Now What?

Facts We have a new TPA for our 401(k) plan and they’ve asked for our current plan document that was effective January 1, 2017. We know the document was signed back when it was prepared, but we can’t ...

Have the Rules for Safe Harbor Notices Changed? | DWC 401(k) Q&A Question of the Week

DWC | 03/3/2020

Have the Rules for Safe Harbor 401(k) Notices Changed?

Facts My company sponsors a safe harbor 401(k) plan and every year my TPA sends me a reminder to distribute a notice to participants. It’s not the biggest hassle but I’ve wondered if it’s really ...

DWC | 02/25/2020

Do We Still Need to Suspend Deferrals Following a Hardship Distribution?

Facts Larry and Kent are both participants in our company’s 401(k) plan. Both recently went back to school on a part-time basis to pursue graduate degrees and will continue working for us. Each of ...

DWC | 02/18/2020

Do We Need to Continue Paying RMDs for a Deceased Participant?

Facts The CEO (and 5% owner) of our company passed away earlier this year at the age of 73. He started taking his required minimum distributions right on time after reaching age 70 ½. At the time of ...

DWC | 02/11/2020

Short Plan Years... Lookback Years... What (and When) Are They and Why Do I Care?

Facts My company started a brand new 401(k) plan last year. We didn’t start the plan until July 1, and since we operate on the calendar year, our first “year” of the plan will only be the six-month ...

DWC | 02/4/2020

What New Tax Credits are Available for Adding an Automatic Enrollment Feature to our Plan?

Facts Our business currently has a retirement plan and we are considering adding automatic enrollment. We have heard that there are new tax credits available to employers who include automatic ...

DWC | 01/28/2020

Am I Now Required to Include Part-Time Employees in my 401(k) Plan?

Facts As the owner of a beachside hotel, I sponsor a calendar year 401(k) plan for my employees. In the summer we hire many part-time employees to assist with the uptick in guests and activities. Our ...

DWC | 01/21/2020

Is It Too Late to Set Up a Retirement Plan to Get a Tax Deduction for Last Year?

Facts Although my New Year’s resolutions include less procrastination it’s likely that by the time Valentine’s Day gets here that good intention will long be in my rear view. As I draft these 2020 ...

DWC | 01/14/2020

What Tax Credits are Available for Setting Up a New Retirement Plan?

Facts Our business is thinking of setting up a retirement plan. We’ve heard that there are new tax credits offered under the SECURE Act available to employers who set up new plans.

DWC | 01/7/2020

What is the Simplest Way to Add Automatic Enrollment to our Plan?

Facts We are considering adding automatic enrollment to our 401(k) plan. We’ve read some of the other posts on your website about EACAs and QACAs, but that all seems like a lot of extra complexity ...

SECURE Act_12.20.2019_News Update Blog Header Image

DWC | 12/17/2019

DWC News Update | The SECURE Act Has Snuck Through

(Updated 12/23/2019) Late Friday evening (aboard Air Force One leaving DC for his holiday retreat), President Trump signed the spending bill that included the SECURE Act. In a bit of last-minute ...

DWC | 12/17/2019

Do the Rules About Related Companies Apply to Non-Profits with No Owners?

Facts I work for a non-profit organization that is thinking of setting up a retirement plan. One of the service providers who we’ve spoken to about this said something about determining whether we ...

Q4 2019 Pension Pontifications Blog Header Image

DWC | 12/12/2019

Pension Pontifications | Q4 2019

Written by Keith Clark, Managing Partner The end of the year is a time for reflection, and this year we have a lot to look back on. We entered our 20th year of business this past May. Eleven years ...

DWC | 12/10/2019

Do 401(k) Loans Impact a Participant's Credit Score?

Facts Our 401(k) plan allows participants to take loans from their accounts. We have a written policy that describes how the loans work and spells out the requirements that the plan and participants ...

DWC | 12/3/2019

What is a Suspense Account and Can We Use Our Forfeiture Account Instead?

Facts The annual compliance report that our TPA provided to us indicates that we over-funded matching contributions for certain employees and instructs us to transfer the excess amounts out of the ...

DWC | 11/26/2019

Tradition vs. Taste: What Classic Thanksgiving Dish Do You Secretly Dislike?

Facts Every year we gather with family and friends to stuff ourselves silly in honor of the first harvest here in the New World. Since that time, families have perfected and passed down Turkey Day ...

Q4 2019 COTQ - Blog Header Image - When More Plans Isnt Merrier - Plan Corrections

DWC | 11/21/2019

When More (Plans) Isn't Merrier: We've Got a Fix for That!

Stop us if you’ve heard this one before – a SEP, a SIMPLE, and a 401(k) walk into a bar…unfortunately, there’s not a great punch line at the end of this one. Instead of some good laughs, this ...

DWC | 11/19/2019

Are Rehires Immediately Eligible for our 401(k) Plan?

Facts We just rehired an employee that used to work for us but who terminated almost 4 years ago. She was eligible for our 401(k) plan during her previous tenure but took a distribution of her ...

DWC | 11/12/2019

What is a Short Plan Year and What Does It Mean for My Deferrals?

Facts Our company operates on a calendar tax year, but our 401(k) plan runs on a fiscal year ending each June 30th. It is a real hassle to manage two different year-ends, so we asked our TPA about ...

2020 Contribution Limits_blog header image

DWC | 11/6/2019

The 2020 Retirement Plan Contribution Limits

The IRS has released the 2020 contribution limits! Since not everyone was awaiting them quite as eagerly as we were, here is a quick summary.

DWC | 11/5/2019

What Do You Do with the SIMPLE IRA Sponsored by the Company You Just Acquired?

Facts My company recently acquired another firm. As we work to combine all of our operations, we’ve discovered a few differences in our employee benefits, specifically our retirement plans. While ...

DWC | 10/29/2019

Is It Possible to Split Eligibility to Allow for Deferrals but to Postpone Safe Harbor Contributions?

Facts We allow new employees to join our 401(k) plan on the first of the month after they are hired. They become eligible to make deferrals and also receive the company safe harbor contribution at ...

In the News_Blog Header Image_IRS Final Hardship Distribution Regulations_10.24.2019

DWC | 10/24/2019

DWC News Update | Two Years in the Making: The Final IRS Hardship Distribution Regulations Are Here

It’s been a while, but we finally have them! Late last month, the IRS published the final hardship distribution regulations, nearly two years after Congress passed the Bipartisan Budget Act and the ...

DWC | 10/22/2019

Are We Required to Make Safe Harbor Contributions for HCEs?

Facts My company sponsors a safe harbor 401(k) plan so that all of the highly compensated employees can maximize their deferrals without worrying about failing the ADP test each year. Although we ...

DWC | 10/15/2019

Is There a Plan Design that Combines the Benefits of Automatic Enrollment and Safe Harbor?

Facts My company sponsors a 401(k) plan, and we fail the annual ADP test pretty consistently. We really want to increase participation; not only to help our test results, but also to encourage our ...

DWC | 10/8/2019

Can Automatically Enrolled Participants Who Forgot to Opt Out Withdraw Their Deferrals?

Facts We are thinking of adding automatic enrollment to our 401(k) plan. One of our concerns, however, is that we might end up with a bunch of tiny account balances for participants who forget to opt ...

DWC | 10/1/2019

Is It Possible to Avoid an Audit for the First (Short) Year of Our Plan?

Facts Our company has about 200 employees, and we launched a new 401(k) plan on October of last year. We were eager for all of our existing employees to get excited about this new benefit, so we ...

DWC | 09/24/2019

How Do I Calculate How Much Money is Available for a 401(k) Loan?

Facts The participants in my company’s 401(k) plan are regularly inquiring about how much money they have available for a loan. When I report back the amount available to them, it’s not unusual for ...

Meet the MEPs_Conclusion_9.18.2019_Blog Header Image

DWC | 09/18/2019

Meet the MEPs: What's Next?

Welcome to the finale of our series on the Department of Labor’s new regulations, updating the definition of “Employer” under ERISA to extend the availability of multiple employer plans to more ...

DWC | 09/17/2019

What is Automatic Enrollment and How Does it Work?

Facts Our company sponsors a 401(k) plan, but very few of our participants are contributing. We started the plan as an added benefit to help attract and retain employees, but we also truly want to ...

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DWC | 09/12/2019

Pension Pontifications | Q3 2019

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 ...

DWC | 09/11/2019

Meet the MEPs: Grab Bag

The Department of Labor’s new regulations that expand the availability of multiple employer plans cover quite a bit of ground. In previous posts, we’ve explored Association MEPs, PEO MEPs, Corporate ...

DWC | 09/10/2019

What is a Successor Plan and Does It Prevent Me from Starting a New 401(k) Plan?

Facts My company used to sponsor a 401(k) plan for my employees. Due to an unforeseen financial hardship, we terminated the plan two years ago. Now that we are back on solid footing, I would like to ...

DWC | 08/28/2019

Meet the MEPs: Corporate MEPs

Thanks to the Department of Labor’s recently published regulations, we went from just having multiple employer plans top having several different types of MEPs. We’ve already covered association MEPs ...

QOTW - 8.27.2019 - How Do We Identify HCEs for the First Year Our Company Exists - Plan Compliance

DWC | 08/27/2019

How Do We Identify Highly Compensated Employees for the First Year Our Company Exists?

Facts We established our company on February 1st of this year, and now we are planning to launch our 401(k) plan. We know there are number of tests and determinations that require us to look at ...

DWC | 08/22/2019

Your Safe Harbor Actually Isn't? We've Got a Fix for That!

We’ve been through a few Corrections of the Quarter together now, and we appreciate you being along for the ride. We feel this is pretty good stuff but, at the heart of it all, we’re pension geeks ...

Meet the MEP_PEOs_8.21.2019_Blog Header Image

DWC | 08/21/2019

Meet the MEPs: PEOs

The next item up for bids in our series on the Department of Labor’s new regulations on multiple employer plans is on professional employer organizations, more commonly referred to by their acronym: ...

QOTW - 8.20.2019 - Who Are All the Providers Servicing My Plan and What Do They Do - Fiduciary Duties and Due Diligence

DWC | 08/20/2019

Who Are All the Providers Servicing My Plan & What Do They Do?

Facts I sponsor a small 401(k) plan for my employees. Sometimes, I get confused about which service provider to go to for different plan-related questions. Time and efficiency are important to me ...

Uncashed Distribution Checks_DWC News Update_8.15.2019_blog header image

DWC | 08/15/2019

Uncashed Distribution Checks? The IRS Provides New Guidance...Sort Of

Just about anyone who has dealt with a 401(k) plan – either as a plan sponsor or a service provider – for any amount of time has had to deal with the issue of participants not timely cashing plan ...

DWC | 08/14/2019

Meet the MEPs: Working Owners

Unless you’ve been on vacation somewhere off the grid, you’ve likely heard the news and read the headlines that the Department of Labor recently published new regulations that expand the availability ...

DWC | 08/13/2019

What is the Deadline to Implement a Retirement Plan for the Current Year?

UPDATE | This QOTW has been updated to reflect changes included in the SECURE Act, signed into law on December 20, 2019. The updated article is available here. Facts Returning from sunny days at the ...

DWC | 08/7/2019

Meet the MEPs: Association Retirement Plans

When the Department of Labor’s new multiple employer plan regulations take effect later this year, we will have three types of MEPs:

DWC | 08/6/2019

Is It Possible to Convert a Pre-Tax 401(k) Account to a Roth Account?

Facts We recently had one of the participants in our 401(k) plan ask if it is possible to convert her balance from pre-tax to Roth. She has been a participant in our plan for many years and has both ...

DWC | 07/30/2019

Can We Require Employees to be Employed at Year-End to Receive a Safe Harbor Contribution?

Facts Our company sponsors a safe harbor 401(k) plan. Each participant receives a safe harbor nonelective contribution equal to 3% of his or her annual pay. Our TPA calculates the safe harbor ...

MEP Announcement_7.30.2019_DWC News Update_Blog Header Image

DWC | 07/30/2019

DWC News Update: It's Just Another MEPish Monday

Yesterday morning while we were all sipping our first cup of Monday morning coffee, the Department of Labor published its much-anticipated final regulations expanding the availability of multiple ...

DWC | 07/23/2019

How Does a Participant's Divorce Affect our 401(k) Plan?

Facts One of the participants in our 401(k) plan is going through a divorce, and we just received a court order directing us to provide a portion of his account to his ex-spouse. I thought that ...

DWC | 07/9/2019

What Do We Need to Consider When Switching from a SIMPLE IRA to a 401(k)?

Facts We’ve sponsored a SIMPLE IRA for our employees for years and while it’s served its purpose, we are beginning to feel the limitations inherent in the plan. As we begin to grow, we’d love to be ...

A Bad Apple a Day Keeps the MEP Away_DWC News Update_blog header image_7.8.2019

DWC | 07/8/2019

DWC News Update: A Bad Apple a Day Keeps the MEP Away

One of the drawbacks that is often cited about multiple employer plans is the so-called “one bad apple rule.” It provides that if a single participating employer in a MEP allows its part of the plan ...

DWC | 06/25/2019

Which Comes First: The Contribution or the K-1?

Facts As a self-employed individual, I run a successful business and have set up a retirement plan to provide for tax-sheltered savings. When its time to determine the contribution amount each year, ...

DWC | 06/18/2019

How Can We Improve ADP/ACP Test Results Without Offering Safe Harbor?

Facts My architectural firm sponsors a 401(k) plan. We have 38 architects and 2 administrative assistants. We currently provide a matching contribution to participants and, some years, a profit ...

QOTW - 6.11.2019 - Safe Habor 401k Match vs. Nonelective - Two Words for the Same Thing or Two Different Options - Plan Design

DWC | 06/11/2019

Safe Harbor 401(k) Match vs. Nonelective: Two Words for the Same Thing or Two Different Options

Facts I recently got a promotion at work, and one of my new job responsibilities is to help manage our company’s retirement plan. It is a safe harbor 401(k) plan. A number of our employees are about ...

QOTW - 6.4.2019 - Spouse or Not a Spouse - Plan Compliance

DWC | 06/4/2019

Spouse or Not a Spouse? That is the Question...of the Week

Facts Our company has sponsored a 401(k) plan for a while and although it’s not new to us that certain situations - from beneficiary designations to annual nondiscrimination testing - might require ...

DWC | 05/30/2019

Feeling Defeated in the Battle of Participant Loans? We've Got a Fix for That.

While not quite as ominous as a battle with the Night King, dealing with participant loans in retirement plans can be a daunting challenge for plan sponsors. Because of Congress’ concerns about ...

QOTW - 5.28.2019 - What Does Safe Habor Mean Exactly - Plan Compliance

DWC | 05/28/2019

What Does Safe Harbor Mean, Exactly?

Facts When we set up our new 401(k) plan last year, we decided not to add a safe harbor provision because we were not in a position to commit to the required contribution. Then we heard our TPA say ...

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DWC | 05/24/2019

DWC News Update: House Passes the SECURE Act

-A breakdown of breaking news from DWC's Managing Partner, Keith Clark If you are reading the mainstream press, the SECURE Act being signed into law is just around the corner. While the overwhelming ...

DWC | 05/21/2019

Which Compensation Do You Use When Your Company Fiscal Year is Different Than Your Plan Year?

Facts When we set up our 401(k) plan, our partnership operated on a fiscal year that ran from July 1st to June 30th. We set the 401(k) plan year to line up with our company’s fiscal year. We recently ...

DWC | 05/14/2019

Are Missed Deferrals and Late Deferral Deposits the Same Thing?

Facts Our company sponsors a 401(k) plan. One of our newer employees, Jane Smith, met the eligibility requirements and should have joined the plan on January 1st. Due to an oversight, we forgot to ...

DWC | 05/7/2019

Top Heavy vs. ADP: What's the Difference?

Facts As a plan sponsor, I do my best to review the annual compliance reports my TPA sends to me, but to be honest, it might as well be written in a foreign language. For example, several of our ...

DWC | 04/23/2019

Are We Required to Force Former Employees to Take Their Money Out of Our Plan?

Facts We just received our year end testing and it mentioned that we have several terminated participants with small balances that we are required to distribute from the plan. I remember seeing ...

The IRS Helps Those Who Help Themselves_News Update_Blog Header Image

DWC | 04/22/2019

DWC News Update: The IRS Helps Those Who Help Themselves

The IRS did its part to make Friday, April 19th a really good Friday for those who sponsor qualified retirement plans. After not making many friends when it jacked up the user fees for the Voluntary ...

QOTW - 4.16.2019 - Who are Leased Employees and Are They Eligble for my 401k Plan - Plan Compliance

DWC | 04/16/2019

Who are Leased Employees & Are They Eligible for my 401(k) Plan?

Facts I own a small manufacturing company that specializes in office supplies, and I sponsor a 401(k) plan for my employees. One of my former employees, Tim Halpert, worked full-time with me for the ...

QOTW - 4.9.2019 - What is the PBGC and Does it Cover our Cash Balance Plan - Plan Compliance

DWC | 04/9/2019

What is the PBGC & Does it Cover our Cash Balance Plan?

Facts Our company is thinking of setting up a cash balance plan. In our research about what that entails, we keep running into information about the PBGC and paying premiums.

DWC | 04/2/2019

What is the Form 8955-SSA and What Does It Do?

Facts Our company has been very fortunate to have low turnover over the years. Those that have left either were not eligible for our 401(k) plan, or they had very small balances and had their ...

Will Association MEPs be DOA_DWC in the News_4.1.2019_header image

DWC | 04/1/2019

DWC News Update: Will Association MEPs be DOA?

If you followed any news outlets at all on Friday, you probably read or heard headlines like this one from CNN: “Court Blocks Another Trump Attempt to Undermine Obamacare”. While the Washington, D.C. ...

DWC | 03/26/2019

How (and for How Long) Can I Extend the Deadline to File our Form 5500?

Facts We’ve had our retirement plan for a couple of years now and feel that we are finally getting the hang of the various deadlines for our plan. There is just one deadline that I always have ...

QOTW - 3.19.2019 - What Common Compliance Issues Should We Be Watching Plan - Plan Compliance

DWC | 03/19/2019

What Common Compliance Issues Should We Be Watching For?

Facts Our company sponsors a 401(k) plan, and we want to make sure we do everything correctly. We have a great staff and have put processes in place to help ensure we operate the plan in a compliant ...

Q1 Retirement Pension Pontifications Blog Header Image

DWC | 03/14/2019

Pension Pontifications | Q1 2019

QOTW - 3.12.2019 - Can Employees from a Former Subsidiary Take a Distribution for our 401k Plan - Plan Distributions and MandA

DWC | 03/12/2019

Can Employees from a Former Subsidiary Take a Distribution from our 401k Plan?

Facts Our company has several wholly-owned subsidiaries, and each of them has signed onto our 401(k) plan as participating employers. We sold 100% of the stock of one of those subsidiaries – Glen’s ...

QOTW - 3.5.2019 - Plan Loans and Past Participants - Plan Distributions

DWC | 03/5/2019

Plan Loans & Past Participants: What Happens to a Participant's Loan Balance When They Terminate Employment?

Facts We have a participant who took a loan from his 401(k) account at the beginning of the year. Yesterday, he gave us notice of his resignation, effective in two weeks, but he still has an ...

Q1 2019 COTQ Blog Header Image_Forfeiture Account Gathering Dusrt

DWC | 02/28/2019

Forfeiture Account Gathering Dust? We’ve got a fix for that!

With all the responsibilities that come with being a plan sponsor, not to mention a business owner, your plan’s forfeiture account probably doesn’t make it anywhere near the top of the priority list. ...

DWC | 02/26/2019

We Failed the ADP Test! What Did We Do Wrong and How Do We Fix It?

Facts Our TPA just sent us our annual compliance report, and it says we failed testing! This is the first year we’ve failed anything, and now we’re being told that we need to take money out of the ...

QOTW - 2.19.2019 - Can Higher Than Normal Turnover Affect My 401k Plan - 2 of 3 - Plan Compliance

DWC | 02/19/2019

Can Higher Than Normal Turnover Affect my 401(k) Plan? | Part 3 of 3: The Results

Facts In last week’s QOTW, you provided some tools we could use to identify which participants were affected by our decision to close one of our locations, and to calculate our actual turnover rate ...

QOTW - 2.12.2019 - Can Higher Than Normal Turnover Affect My 401k Plan - 2 of 3 - Plan Compliance

DWC | 02/12/2019

Can Higher Than Normal Turnover Affect my 401(k) Plan? | Part 2 of 3: Doing the Math

Facts Last week, we asked whether the turnover we are expecting as a result of closing a facility would have any impact on our 401(k) plan, and you mentioned a partial plan termination. We have some ...

QOTW - 2.5.2019 - Can Higher Than Normal Turnover Affect My 401k Plan - 1 of 3 - Plan Compliance

DWC | 02/5/2019

Can Higher Than Normal Turnover Affect my 401(k) Plan? | Part 1 of 3: Overview

Facts Our company designs and manufactures boats. Due to some advancements in technology, we will be closing one of our older facilities. While we offered those workers the option to relocate to one ...

DWC | 01/29/2019

Are There Risks to Contributing More Than the Minimum to a Cash Balance Plan?

Facts I set up a cash balance plan two years ago and have put in the minimum required contribution each year. Now, in my third year, I would like to make the maximum deductible contribution, which is ...

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DWC | 01/25/2019

New eBook: How To Select Retirement Plan Service Providers

Are you a plan sponsor? Then it's your fiduciary duty to hire and oversee the industry service providers for your plan. This new eBook will help you do it right.

DWC | 01/22/2019

How Can We Pass Nondiscrimination Testing with Low Non-HCE Participation?

Facts I am fed up with sponsoring my current retirement plan. My wife and I contribute the maximum amount we can in deferrals each year. Due to low participation by our employees, we fail ADP testing ...

DWC | 01/15/2019

Can We Reduce the Number of HCEs in our Plan?

Facts We set up our company 401(k) plan soon after we started our business. At the time, we were a small tech company with only a couple of employees. Over the years the company has grown ...

DWC | 01/8/2019

Can We Change our Plan's Vesting Schedule?

Facts We set up our company 401(k) plan soon after we started the business. At the time, being able to afford to make a match or profit sharing contribution seemed so distant as to not be worth ...

Q4 2018 COTQ Blog Header Image_Forgot to Timely Execute a Document Restatement

DWC | 12/20/2018

Forgot to (Timely) Execute a Document Restatement? There's a Fix for That!

You probably know that establishing a qualified retirement plan requires the formal adoption of a written, legal plan document. And, if you’ve had a plan in place for any amount of time, you’ve most ...

QOTW - 12.18.2018 - Hardships and Hurricanes_What are the Hardship Rules Following a Natural Disaster_Plan Distributions

DWC | 12/18/2018

Hardships & Hurricanes: What are the Hardship Rules Following a Natural Disaster?

Facts Our company sponsors a 401(k) plan. One of our participants lives in the Florida panhandle and lost her home in Hurricane Michael. She is under age 59 ½ and is not eligible to take in-service ...

DWC | 12/11/2018

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

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 ...

DWC | 12/6/2018

Q4 Pension Pontifications

DWC | 12/4/2018

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

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 ...

Joe Nichols_New Hire Press Release Blog Header Image

DWC | 12/3/2018

Joe Nichols Joins DWC as Firm Actuary

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, ...

DWC | 11/27/2018

Are RMDs Required for a Retiree Turned Independent Contractor?

This QOTW has been updated to reflect changes made by the SECURE Act, which was signed into law on December 20, 2019. Participants who were born on or before July 1, 1949, are required to start ...

DWC | 11/20/2018

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

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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DWC | 11/13/2018

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

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 ...

DWC | 11/13/2018

Can We Suspend RMDs for a Rehire?

This QOTW has been updated to reflect changes made by the SECURE Act, which was signed into law on December 20, 2019. Participants who were born on or before July 1, 1949, are required to start ...

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DWC | 11/8/2018

Announcing a New Knowledge Center Experience

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 ...

QOTW - 11.6.2018 - Can a Participant get a Jump on RMDs and Start Taking Them a Few Months Early - Plan Distributions

DWC | 11/6/2018

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

This QOTW has been updated to reflect changes made by the SECURE Act, which was signed into law on December 20, 2019. Participants who were born on or before July 1, 1949, are required to start ...

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DWC | 11/1/2018

The 2019 Retirement Plan Contribution Limits

The IRS has released the 2019 contribution limits! Since not everyone was awaiting them quite as eagerly as we were, here is a quick summary.

DWC | 10/30/2018

What Costs can be Covered Under a Hardship Distribution for Purchase of a Primary Residence?

Facts One of the participants in our 401(k) plan submitted a request for a hardship distribution for the purchase of a primary residence. On review of the supporting documentation, we discovered that ...

QOTW - 10.23.2018 - Can In Service Distribtuions Be Take Prior to Age 59.5 - Plan Distributions

DWC | 10/23/2018

Can In-Service Distributions be Taken Prior to Age 59 1/2?

Facts One of the participants in our 401(k) plan heard from a friend that it is possible to take money out of a plan while still employed. I’ve always heard that age 59 ½ is the rule of thumb as to ...

DWC | 10/16/2018

Can Participants Invest Their 401(k) Accounts in Real Estate?

Facts I am the 100% owner of my company, and we have a 401(k) plan that allows all our employees to direct the investment of their own accounts from a menu of mutual fund options via our ...

Industry Insight Round Up 10.11.2018_blog header image

DWC | 10/11/2018

Plan Sponsors & Fiduciaries: Here's What You Should Be Watching

DWC stays on top of what's trending, and our self-proclaimed pension geeks often offer their insights in industry publications. As we transition into the fourth quarter the theme has been, "What Plan ...

QOTW - 10.9.2018 - Can We Change our Plan Eligibility Requirements to Exclude Employees Who Have Already Joined - Plan Design

DWC | 10/9/2018

Can We Change our 401(k) Plan Eligibility Requirements to Exclude Employees Who Have Already Joined?

Facts Our company has quite a few employees who only work a few hours each week. When we setup the 401(k) plan, we wanted to allow all our employees to save, so we set the eligibility requirement at ...

QOTW - 10.2.2018 - Why Does your TPA Need Personal and Ownership Details - Plan Compliance

DWC | 10/2/2018

Why Does Your TPA Need Personal & Ownership Details from Company Owners?

Facts Our company sponsors a 401(k) plan for our employees. The owners of the company have always been somewhat secretive in terms of sharing detailed information about themselves and their families. ...

DWC | 09/27/2018

Delinquent Deposits of Employee Deferrals? There's a Fix for That!

While it might not seem like that big of a deal if 401(k) deposits are made a couple days or weeks late, the Department of Labor (DOL) considers those payroll withholdings to be plan money on the ...

DWC | 09/25/2018

Can a Charitable Organization be Named as a Plan Beneficiary?

Facts Our company sponsors both a 401(k) plan and a cash balance plan. One of our employees is a strong supporter of a local charity. She does not have a spouse or children, so she would like to name ...

DWC | 09/18/2018

What Is a True-Up Matching Contribution?

Facts Our 401(k) plan provides for a matching contribution of 50% of the first 6% deferred by each participant (for a maximum match of 3% of pay per year). We deposit the matching contributions to ...

Q3 Retirement Plan Podium Update Blog Header Image-1

DWC | 09/13/2018

Q3 Pension Pontifications

All of us here at DWC thrive on the really geeky stuff, and some of the best discussions start with Adam and Keith’s pontifications about how different topics impact our clients and our industry. We ...

DWC | 09/11/2018

Decoding the Alphabet Soup: What's With All the Acronyms? | Part 3

Facts People in the retirement plan business sure do like their acronyms. All these letters get thrown around, and I do not know what half of them mean.

DWC | 08/28/2018

No Beneficiary Form: Now What?

Facts A participant in our 401(k) plan recently passed away. His daughter is the executor of his estate and has asked about the process for getting his plan account paid out. We’ve gone through all ...

In the News_Tianna Schulz Relocation Press Release Blog Header Image

DWC | 08/23/2018

DWC's Tianna Schulz Relocates to New Orleans, Expands Company Presence

NEW ORLEANS - Aug. 20, 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, ...

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DWC | 08/21/2018

Breaking News: The IRS PLR on Student Loan Benefits in 401(k) Plans is Much Ado About Not Much

We interrupt your regularly scheduled programming to highlight the IRS’ not-so-ground-breaking entrance into the world of student loan benefits in 401(k) plans.

DWC | 08/21/2018

How Are Corrective Refunds Determined for a Failed ADP Test?

Facts Our 401(k) plan failed the ADP test for the first time this year. We decided to correct the failure by making refunds to the highly compensated employees instead of making additional ...

Industry Insight Round Up 8.16.2018_blog header image

DWC | 08/16/2018

Retirement Planning & Regulatory Trends You Should Be Watching

Feeling out of the loop on industry happenings this summer? DWC stays on top of what's trending, and our self-proclaimed pension geeks often offer their insights in industry publications. Get caught ...

DWC | 08/14/2018

Decoding the Alphabet Soup: What's With All the Acronyms? | Part 2

Facts People in the retirement plan business sure do like their acronyms. All these letters get thrown around, and I do not know what half of them mean.

DWC | 08/7/2018

What Do We Do With Mutual Fund Settlement Proceeds?

Facts Our company sponsors a 401(k) plan, and we moved to a new recordkeeper about two years ago. Last week we received a letter and a check from our previous recordkeeper indicating that the check ...

News_Summer 2018 Intern Program Blog Title Image_8.2.2018

DWC | 08/2/2018

Another Summer Intern Program Success for DWC

DWC is honored to announce its six 2018 summer intern consultants have successfully completed their summer program.

DWC | 07/31/2018

How Do We Correct Missed Deferrals for New Hires?

Facts Our 401(k) plan allows new employees to make contributions on the first day of the quarter after they work for us for a year. All of our full-time employees have been with us for a long time. ...

News_Better Fiduciaries 5.1.2018_Blog Header Image

DWC | 07/26/2018

How Plan Sponsors Can be Better Fiduciaries (With or Without the Rule)

Whether a company is small or large, chances are it offers employees a 401(k). But this well-intentioned benefit has become target practice for attorneys, with lawsuits against companies ranging from ...

DWC | 07/24/2018

Decoding the Alphabet Soup: What's With All the Acronyms? | Part 1

Facts People in the retirement plan business sure do like their acronyms. All these letters get thrown around, and I do not know what half of them mean.

QOTW - 7.17.2018 - Employee Joined the Plan Too Soon - Qualifed Plan Compliance

DWC | 07/17/2018

An Employee Joined the Plan Too Soon: No Harm, No Foul or Failure In Need of a Fix?

Facts 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 ...

DWC | 07/12/2018

Here's What Happens to Your 401(k) After a Company Merger or Acquisition

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 ...

DWC | 07/10/2018

Can A Departing Employee Make 401(k) Contributions From Severance Pay?

Facts 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 ...

DWC | 07/3/2018

DWC Continues Expansion, Adds Ali Bechtel as Marketing Director

RALEIGH, NC - June 18, 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 ...

DWC | 06/28/2018

Correcting a Failure to Withhold Deferrals from Eligible Compensation

Facts ABC Company maintains a 401(k) plan that includes the following provisions: It operates on a calendar year. Compensation is defined as W2 wages with pre-tax deferrals added back and no ...

DWC | 06/26/2018

What Compensation Should We Use to Calculate Company Contributions to our 401(k) Plan?

Facts 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 ...

QOTW - 6.19.2018 - After Tax v Roth Contributions - Retirement Plan Design

DWC | 06/19/2018

After-Tax vs. Roth Contributions: What's the Difference?

Facts 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 ...

DWC | 06/14/2018

When Will Bitcoin Make Its Way to 401(k) Plans?

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 ...

QOTW - 6.12.2018 - Is Bitcoin a Realistic Investment Option - Retirement Plan Design

DWC | 06/12/2018

Is Bitcoin a Realistic 401(k) Investment Option?

Facts 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 ...

DWC | 06/5/2018

Can We Exclude Seasonal Employees From Our 401(k) Plan?

Facts 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 ...

DWC | 05/29/2018

Can You Make Extra Payments on a 401(k) Loan to Pay It off Faster?

Facts A participant in our 401(k) plan took out a loan a couple years ago. She could only afford to make the bare minimum payments at the time, but is now in a financial position to pay down the loan ...

QOTW - 5.22.2018 - Can a Company Freeze a 401k Account if an Employee is Suspected of Stealing - Plan Distributions

DWC | 05/22/2018

Can a Company Freeze a 401(K) Account if an Employee Is Suspected of Stealing From the Company?

Facts We just discovered that one of our employees has been stealing money from the company for quite some time. We fired him as soon as we discovered the theft, and we are working with the police ...

DWC | 05/15/2018

401(k) Notice Distribution: Hard Copy vs. Electronic Delivery

Facts It seems like 401(k) plans require a lot of different notices and disclosures be provided to participants each year. We have safe harbor and default investment notices at the end of the year, ...

DWC | 05/8/2018

401(k) Distribution Rules: After Taking a Hardship Distribution, How Quickly Must a Participant Stop 401(k) Contributions?

Facts A participant in our 401(k) plan recently took a hardship distribution. We know we are supposed to suspend his deferrals for six months following the distribution, but we are not entirely clear ...