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.
Topic Archive: Defined Benefit
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.
I recently sold my business, and all of my employees went to work for the buyer. My goal is to continue working for a period of time, but I do not expect to hire any more employees.
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.
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 testing and contribution calculations. I've many situations in which a plan sponsor decided to skip testing for a year, because their plan was so easy there was no way it could fail. Similarly, I've seen service-providers decide to skip the critical peer review step in their process, because nothing could possibly have been missed on such an easy plan.
As the EGTRRA restatement window closes for pre-approved DC plans and begins to open for pre-approved DB plans, I thought I would pontificate on the importance of the plan document. Qualified plans are required to be maintained pursuant to a written plan document. Operating the plan inconsistent with terms in that document is an operational failure that can threaten a plan’s qualified status.