401(k) Plan

Extra! Extra! Stay up to date on the latest news about the DWC team.

The retirement plan landscape is ever evolving. We distill the details so you don’t have to!

We’ve corralled the best news from inside the beltway – not only regulations, but also new legislation from Congress as well as relevant guidance from the IRS and Department of Labor. In true DWC fashion, we don’t just repackage a recitation of the rules, we provide our thoughts and commentary about what those rules mean to you.

We know cash balance rules can be intimidating! Settle into the Cash Balance Corner and let us break it down for you.

Have 401(k) questions? We have 401(k) answers! We bring you answers to many of the common questions we receive.

A behind-the-scenes look not at how the sausage is made, but why we make it the way we do. (Hint: It’s all about the best interests of the client.)

We’re all about learning from other people’s (alleged) mistakes. We might not be attorneys, but we still follow benefits-related cases and summarize lessons and key take-aways. No hourly fee needed for these insights!

A deeper dive into retirement plan topics doesn’t have to be headache-inducing. Our Pension Primer articles provide depth of information without depth of jargon!

DWC |

The 2025 Retirement Plan Contribution Limits

Extra! Extra! The IRS has released the 2025 contribution limits.
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DWC |

401(k) or 403(b) : Tomāto, Tomäto?

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, ...
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DWC |

Twenty Questions: Retirement Plan Loan Style

Twenty Questions: Retirement Plan Loan Style
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DWC |

Download the Plan Design Quick Reference Chart

Which retirement plan design is right for you? With so many design options it can be difficult to keep them all straight. We've taken all the guess work out of it with our Plan Design Comparison ...
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Jen Swets |

New Distribution Options to Encourage Savings

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Adam C. Pozek |

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

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Adam C. Pozek |

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

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Sue Schnur |

Grab Bag of RMD Changes

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DWC |

The 2024 Retirement Plan Contribution Limits

Extra! Extra! The IRS has released the 2024 contribution limits.
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Carter Kimball |

Cash Out Limit is Movin' On Up

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Haden McDonald |

Trust But Verify...But Not For Hardship Distributions

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DWC |

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 ...
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DWC |

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 ...
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DWC |

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 ...
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DWC |

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 ...
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DWC |

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.
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DWC |

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.
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DWC |

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 ...
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DWC |

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 ...
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DWC |

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 ...
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DWC |

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 ...
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DWC |

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 ...
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DWC |

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 ...
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DWC |

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 ...
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DWC |

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.
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DWC |

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 ...
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DWC |

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 ...
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DWC |

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 ...
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DWC |

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 ...
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DWC |

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 ...
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DWC |

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 ...
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DWC |

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 ...
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DWC |

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 ...
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DWC |

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 ...
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DWC |

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.
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DWC |

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 ...
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DWC |

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 ...
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DWC |

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.
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DWC |

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 ...
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DWC |

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.
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DWC |

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 ...
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DWC |

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 ...
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DWC |

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 ...
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DWC |

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 ...
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DWC |

What Are The Different Types of 401(k) Contributions And How Do They Work?

Facts Our business is considering setting up a 401(k) plan for our employees. We know that it can include both employee contributions and company contributions, but we keep hearing about all sorts of ...
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DWC |

Which 401(k) Plan Fees Can Be Paid Out of Plan Assets?

Facts When we first established our 401(k) plan, the company didn’t have a lot of discretionary income, so we went with a low-cost provider and set it up so the plan would pay for its own fees. We ...
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DWC |

DWC on Enterprise Radio: How Selling a Business Can Impact Your Retirement Plan

DWC partner Jen Gibbs Swets recently spoke with Enterprise Radio host Eric Dye to discuss selling a business and the impact it has on retirement planning. Swets, who has more than 15 years of ...
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DWC |

DWC in BenefitsPRO: Tax Bill Might Affect 401(k) Offerings

The reconciliation of the tax reform bills working their way through Congress is prompting retirement industry experts to speak up. Many are expressing concern that the unintended consequence of the ...
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DWC |

The 2018 Retirement Plan Contribution Limits Are Here

The IRS has released the 2018 contribution limits! Since not everyone was awaiting them quite as eagerly as we were, here is a quick summary.
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DWC |

DWC in Bloomberg BNA: Bitcoin Too Risky for 401(k)s?

"Bitcoin may be the hottest thing going in the investment world, but 401(k) plan participants aren’t likely to see it on their regular investment menus anytime soon," writes Jasmine Ye Han in ...
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DWC |

DWC in 401(k) Specialist: Trends to Watch in Plan Service

"The 401(k) service sector has evolved considerably since its introduction in the Revenue Act of 1978," writes DWC Partner Keith Clark in 401(k) Specialist.
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DWC |

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

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 ...
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DWC |

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 ...
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Adam C. Pozek |

SchoolHouse Rock Meets The 401(k) Plan

When I was kid, I used to love Schoolhouse Rock during the commercial breaks of Saturday morning cartoons. Even now, I have them all on DVD as well as a CD of covers by various rock musicians, and I ...
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Adam C. Pozek |

Accidents Will Happen

If you’ve spent any time working with retirement plans, you know how complicated they can be. It seems like every rule has an exception and an exception to that exception. It is no wonder that ...
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Adam C. Pozek |

Happy MEP-morial Day From The DOL

Back in March, Assistant Secretary of Labor Phyllis Borzi testified before a Senate committee, expressing concern about whether open MEPs can be treated as single plans under ERISA since there is no ...
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Adam C. Pozek |

Easy Peasy Lemon Squeezy…Not When It Comes To Retirement Plans

Qualified plans are complicated beasts regardless of size or design. This truth is sometimes forgotten at this time of year when sponsors and service-providers are busy dealing with nondiscrimination ...
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Adam C. Pozek |

Confession Is Good For The Soul…And The Checkbook

Over the last few weeks, I have spoken with at least four plan sponsors who just became aware that they missed the April 30, 2010 deadline to restate their plan documents for EGTRRA. For those in ...
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