Topic Archive: DWC

Do We Need an IRS Favorable Determination Letter for Former Employees to Roll Over Their Balances?

DWC | 08/15/17

Facts

We recently processed a rollover from our 401(k) plan for a former employee who wants to roll her balance into her new employer’s plan. Shortly after the payment was processed, the former employee emailed us requesting either a copy of our plan’s IRS favorable determination letter or a signed acknowledgment that we have such a letter.

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Can We Split QDRO Fees Between Participant and Ex-Spouse?

DWC | 08/8/17

Facts

We have a participant who is going through a divorce and told us that he will be submitting a Qualified Domestic Relations Order to assign a portion of his 401(k) account to his ex-spouse. It is our normal practice (which has been communicated to our participants) to charge the participant’s account for the fees associated with reviewing and approving the order as well as segregating the award for the ex-spouse.

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Can I Pre-Fund a Matching Contribution for a Participant Who Terminated Employment?

DWC | 08/1/17

Facts

Our company sponsors a safe harbor 401(k) plan that provides for a dollar-for-dollar match up to 4% of pay. At the end of each year, we calculate the total matching contribution, and we usually make the deposit in the late summer. For example, we deposit the matching contribution for 2017 in August or early September of 2018.

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

DWC | 07/24/17

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 safe harbor.

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Welcome to the New DWC

DWC | 07/24/17

Notice we didn't say new website. Though it's true the site is brand new—redesigned and reconfigured from top to bottom for you—that's not the most important thing that's changed.  

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What's Old Is New Again

Adam C. Pozek | 11/14/14

Whether we’re talking fashion or music or architecture or barber shops, it seems things that have faded from existence eventually come back around.  See if this cycle looks familiar:  cutting edge becomes status quo becomes so last week becomes so [insert decade] becomes retro becomes vintage.

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Exactly the Same but Completely Different

Adam C. Pozek | 09/17/14

At the end of August, I made my first trip to Burning Man, an annual event held in the Black Rock Desert of northern Nevada.  With 10 guiding principles, it involves art, music and free-spiritedness.  This experiment in temporary community sees 65,000+ attendees converge on a dried-up lake bed, build a temporary city and leave behind no trace that it ever existed only a couple of short weeks later.  Katie Couric, Chris Taylor and Grover Norquist describe it better than I could.

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Don’t Be The Next Target for a Data Breach

Adam C. Pozek | 09/1/14

The TJX Companies, Target, and AT&T are just three of the big names to have been victims of massive data breaches in which sensitive personal and financial information was compromised. Although it might seem that large companies are the only potential victims, the risk is shared by any organization that houses or transmits such information. 

If you think about it, the data necessary for ongoing administration of employee benefit plans is enough to make an identity thief’s mouth water—names, social security numbers, birth dates, addresses—pretty much everything except mother’s maiden name, favorite pet and name of first grade teacher.

With the rapid evolution of technology and the sophistication of the bad guys who wish to exploit it to their advantage, it is increasingly critical that we take steps to prevent them.

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SchoolHouse Rock Meets The 401(k) Plan

Adam C. Pozek | 04/22/13

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 still sing along with all of them word-for-word!

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Accidents Will Happen

Adam C. Pozek | 02/24/13

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 accidents occasionally happen despite everyone’s best efforts to follow the rules.

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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.