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Retroactively Decided Not to Make Safe Harbor Contributions for Your HCEs? We've Got a Fix (or Two) for That!

DWC 05/28/20
If you’ve been with us for a while you’ve heard us say a few things time and again.  First, the rules and regulatory agencies do not allow plans to disproportionately favor highly compensated employees (HCEs) relative to the non-HCEs.  Second, a plan sponsor must be very careful about how and when it implements or removes benefits from the plan.  ...
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When the Grass Isn't Greener with More Plans, There's a Fix for That!

DWC 03/13/20
In our last Correction of the Quarter, we looked at related companies setting up different types of plans for their respective employees and noted that this sort of structure isn’t “necessarily” a problem when it comes to 401(k) plans.  Well, as usual, the devil’s in the details, so we thought it was worth diving into what happens when this is a ...
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When More (Plans) Isn't Merrier: We've Got a Fix for That!

DWC 11/21/19
Stop us if you’ve heard this one before – a SEP, a SIMPLE, and a 401(k) walk into a bar…unfortunately, there’s not a great punch line at the end of this one.  Instead of some good laughs, this situation is a recipe for some issues in need of attention.  While it might be unusual for a single company to establish one of each, it is not nearly as ...
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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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Feeling Defeated in the Battle of Participant Loans? We've Got a Fix for That.

DWC 05/30/19
While not quite as ominous as a battle with the Night King, dealing with participant loans in retirement plans can be a daunting challenge for plan sponsors.  Because of Congress’ concerns about protecting plan assets from improper use by participants and plan sponsors alike, the loan rules are strict and unforgiving. 
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Forfeiture Account Gathering Dust? We’ve got a fix for that!

DWC 02/28/19
With all the responsibilities that come with being a plan sponsor, not to mention a business owner, your plan’s forfeiture account probably doesn’t make it anywhere near the top of the priority list.  More than likely, forfeitures are allocated to the account automatically by your plan’s recordkeeper following a participant distribution.  Then, ...
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Forgot to (Timely) Execute a Document Restatement? There's a Fix for That!

DWC 12/20/18
You probably know that establishing a qualified retirement plan requires the formal adoption of a written, legal plan document.  And, if you’ve had a plan in place for any amount of time, you’ve most likely also been required to adopt a handful of mandatory amendments along the way. 
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Delinquent Deposits of Employee Deferrals? There's a Fix for That!

DWC 09/27/18
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 deposit deadlines regardless of where the money is physically located.  To the extent those monies are still in the plan sponsor’s control, the delayed ...
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Correcting a Failure to Withhold Deferrals from Eligible Compensation

DWC 06/28/18
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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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.