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Nondiscriminatory Benefit Amounts - Treat Me Right

DWC 04/8/21
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 meaning of “nondiscrimination” is well defined, albeit quite complex. Here, the only point of view that matters is that of the IRS.
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Minimum Plan Participation - With or Without You

DWC 03/11/21
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 regulatory requirements. Since these plans provide hundreds of billions of dollars in tax deductions each year, Congress and the various agencies want to ...
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Nondiscrimination Testing Creates Career Opportunites

DWC 02/11/21
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 regulatory requirements. Since these plans provide hundreds of billions of dollars in tax deductions each year, Congress and the various agencies want to ...
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Anticipating a New Hire - You Might Change Your Mind

DWC 01/28/21
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 regulatory requirements. Since these plans provide hundreds of billions of dollars in tax deductions each year, Congress and the various agencies want to ...
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Adding an Employee to Your Cash Balance Plan? You Should be Thinking This Article is "Just What I Needed"

DWC 12/3/20
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 regulatory requirements. Since these plans provide hundreds of billions of dollars in tax deductions each year, Congress and the various agencies want to ...
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Cash Balance Compliance: "Takin' Care of Business"

DWC 11/5/20
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 complexities of an owner-only plan. Now, it’s time to take a step back to take a look at some of the more mundane-sounding but still very important ...
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How to "Push It" (But Not Too Much) by Prefunding Cash Balance Plans

DWC 10/22/20
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.
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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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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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"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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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.