Author Archive: DWC

Do We Need an IRS Favorable Determination Letter for Former Employees to Roll Over Their Balances?

DWC | 08/15/17

Facts

We recently processed a rollover from our 401(k) plan for a former employee who wants to roll her balance into her new employer’s plan. Shortly after the payment was processed, the former employee emailed us requesting either a copy of our plan’s IRS favorable determination letter or a signed acknowledgment that we have such a letter.

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DWC in FiduciaryNews: 401(k) Rollovers and Roth IRAs

DWC | 08/10/17

"To Roth or Not to Roth," that is the title question of Christopher Carosa's latest FiduciaryNews.com article about 401(k) rollovers.

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Can We Split QDRO Fees Between Participant and Ex-Spouse?

DWC | 08/8/17

Facts

We have a participant who is going through a divorce and told us that he will be submitting a Qualified Domestic Relations Order to assign a portion of his 401(k) account to his ex-spouse. It is our normal practice (which has been communicated to our participants) to charge the participant’s account for the fees associated with reviewing and approving the order as well as segregating the award for the ex-spouse.

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DWC in PLANADVISER: New Comparability Plans

DWC | 08/2/17

More and more small, professional companies are interested in new comparability, or cross-tested, plans.

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Can I Pre-Fund a Matching Contribution for a Participant Who Terminated Employment?

DWC | 08/1/17

Facts

Our company sponsors a safe harbor 401(k) plan that provides for a dollar-for-dollar match up to 4% of pay. At the end of each year, we calculate the total matching contribution, and we usually make the deposit in the late summer. For example, we deposit the matching contribution for 2017 in August or early September of 2018.

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Can I Add a Personal SEP IRA to My Company's 401(k) Plan?

DWC | 07/24/17

Facts

Our firm sponsors a 401(k) plan that includes a 3% of pay safe harbor contribution. The plan also includes a profit sharing provision, but the only company contribution we usually make is the safe harbor.

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Welcome to the New DWC

DWC | 07/24/17

Notice we didn't say new website. Though it's true the site is brand new—redesigned and reconfigured from top to bottom for you—that's not the most important thing that's changed.  

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DWC in the Wall Street Journal: Target-Date Funds

DWC | 07/3/17

Even as target date funds have become staples in 401(k) investment menus, there continue to be questions about their appropriateness as participants approach retirement age. Is the target date meant to be to or through retirement? Is the participant ahead or behind his or her savings goal? These are questions participant should answer to determine whether to stay the course or consider an alternate asset allocation.

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DWC in U.S. News & World Report: 401(k) Brokerage Options

DWC | 06/30/17

Once primarily the domain of 401(k) plans of professional organizations such as law firms or medical practices, the self-directed brokerage window has become a more common option in plans sponsored by other types of business. But offering participants the ability to invest outside of the pre-determined fund lineup comes with its own set of additional fiduciary considerations.

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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.