Author Archive: DWC

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

DWC | 08/22/19

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 (no point in hiding it).  And while the rules and regulations get us going, we have a geeky passion for the opportunity to find creative solutions.

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Meet the MEPs: PEOs

DWC | 08/21/19

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: PEOs.  These organizations have an interesting history when it comes to retirement plans.

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

DWC | 08/20/19

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 (and so is cost), and it seems like having all these different providers might be overkill.  Recently, I was talking to a friend who is also a business owner, and she said she’s got one group doing all her plan work from A to Z.

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

DWC | 08/15/19

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 distribution checks.  There are all sorts of potential concerns that range from tax implications to fiduciary responsibilities, but neither the IRS nor the DOL have been especially forthcoming with guidance.

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Meet the MEPs: Working Owners

DWC | 08/14/19

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 of multiple employer plans.  While that is true, what those new rules actually do is to change ERISA’s definition of the term “Employer” so that more types of organizations fit within it, thus allowing them to sponsor MEPs.

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

DWC | 08/13/19

Facts

Returning from sunny days at the beach, I’ve begun discussing my company’s year-end financial projections with my accountant.  Those conversations have been about as fun as a sunburn; it looks like my company and I are looking at a hefty tax bill.  My accountant has suggested on more than one occasion that I consider implementing a retirement plan to help minimize my tax burden, but I’ve just never gotten around to it.  Now, I’m kicking myself.

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Meet the MEPs: Association Retirement Plans

DWC | 08/7/19

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

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

DWC | 08/6/19

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 her own deferrals as well as company contributions (both match and profit sharing). Based on her current financial situation, she believes it would be more advantageous to convert to Roth so that she can receive distributions tax-free when she retires.

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

DWC | 07/30/19

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 contribution for us after the close of each year, and we deposit it sometime before we file our company tax return for that year.  Each year, we have a couple of participants who terminated employment before year end, and we end up making contributions for them even though they are long gone by the time we make the deposit.

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DWC News Update: It's Just Another MEPish Monday

DWC | 07/30/19

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 employer plans to associations, PEOs, and self-employed individuals.

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