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

DWC 10/13/20
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 pay for each person, but your previous Question of the Week about using the profit sharing feature to reward certain key performers piqued our interest.
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Maximum Contributions: Additional "Opportunities"

DWC 10/8/20
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 – tax deductibility. After all, the need for additional deductions is one of the main drivers for businesses to setup cash balance plans in the first ...
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Can We Tweak our 401(k) to Allow Additional Savings for Reasons More Immediate than Retirement?

DWC 10/6/20
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 insurance options as well as a 401(k) plan with company match. We would also like to make it easy for our employees to set money aside for other ...
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Are Discretionary Matching Contributions Becoming a Little Less...Discretionary?

DWC 09/29/20
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 discretion not only in how much we match each year and when we make those contributions (each pay period, monthly, etc.) has worked well for us. I recently ...
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Pension Pontifications | Q3 2020

DWC 09/24/20
  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 adjust to their impacts on retirement plans. So this quarter we’re using our Pension Pontifications column as an opportunity to round up all of the hot ...
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Can We Add a Safe Harbor Provision While Maintaining Flexibility in Contribution Costs?

DWC 09/22/20
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 the idea of a mandatory contribution. If cash flow isn’t what we expect in a given year, we don’t want to be stuck with expensive contributions.
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Maximum Contributions: "Everybody Wants Some"

DWC 09/17/20
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, we will talk about what he can contribute (the Maximum).
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Can a Former Employee Roll a Coronavirus-Related Distribution Back into our Plan?

DWC 09/15/20
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 CRDs, but we didn’t anticipate any would be interested in that option. We’re glad that some do now want to repay, but we want to be sure we handle ...
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"Complete Control" with Recommended Contributions

DWC 09/3/20
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 get what you want. To make up for the complexity of determining the Minimum Required Contribution (MRC), we are going to discuss Recommended ...
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DWC - The 401(k) Experts Announces Jamelle Moody as Principal

DWC 09/1/20
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 is pleased to announce that Jamelle Moody will be a member of the partnership’s Operating Committee effective September 1, 2020 as Principal.
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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.