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Correcting a Failure to Withhold Deferrals from Eligible Compensation

DWC 06/28/18
COTQ - 6.28.2018 - Blog Header Image
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 exclusions. Eligible participants can defer up to the IRS limit $18,500 + $6,000 for those age 50 or older (2018 limits, indexed for inflation) The company ...
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What Compensation Should We Use to Calculate Company Contributions to our 401(k) Plan?

DWC 06/26/18
QOTW - 6.26.2018 - What Compensation Should We Use to Calculate Company Contributions to our 401k Plan - Retirement Plan Design - Plan Sponsor Requirements
Facts Our company has a safe harbor 401(k) plan.  In addition to employees making deferrals, we make a company contribution equal to 3% of each person’s compensation.  We deposit both types of contributions each pay period, so in theory at least, we should be all set by the end of each year.  However, it seems that each year, our TPA comes back to ...
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Can Bonuses Be Excluded From Retirement Plan Compensation?

DWC 03/13/18
QOTW - 3.13.2018 - Can Bonuses Be Excluded From Retirement Plan Compensation - Retirement Plan Design 1
Facts Our company pays a number of different types of bonuses—signing bonuses, spot bonuses, holiday bonuses, production bonuses, etc. You get the idea. We know that bonuses paid once the employee has worked for us for a while count for purposes of the retirement plan, but we would like to carve out signing bonuses.
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