401(k) Q&A | Plan & Industry Content From DWC - The 401(k) Experts

Pension Pontifications | Q3 2020

DWC 09/24/20

Over the last several months we’ve been in touch quite a bit to keep you up to date on the many changing regulations occurring in the industry as legislators work to react to current events and adjust to their impacts on retirement plans. So this quarter we’re using our Pension Pontifications column as an opportunity to round up all of the hot ...

Can We Add a Safe Harbor Provision While Maintaining Flexibility in Contribution Costs?

DWC 09/22/20

DWC 401(k) Q&A Question of the Week: Adding Safe Harbor Provision, Maintaining Contribution Cost Flexibility

Facts We currently sponsor a 401(k) plan and have been debating adding a safe harbor provision for 2021. While the idea of buying our way out of the ADP/ACP tests is appealing, we’re nervous about the idea of a mandatory contribution. If cash flow isn’t what we expect in a given year, we don’t want to be stuck with expensive contributions.

Maximum Contributions: "Everybody Wants Some"

DWC 09/17/20

DWC 401(k) Q&A Cash Balance Corner: Calculating Maximum Contributions

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).

Can a Former Employee Roll a Coronavirus-Related Distribution Back into our Plan?

DWC 09/15/20

Facts Earlier this year, we decided to make the CARES Act coronavirus-related distributions (CRDs) available to participant in our 401(k) plan. We know that it is possible for participants to repay CRDs, but we didn’t anticipate any would be interested in that option. We’re glad that some do now want to repay, but we want to be sure we handle ...

"Complete Control" with Recommended Contributions

DWC 09/3/20

DWC 401(k) Q&A Cash Balance Corner: Calculating Recommended Contributions

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 ...

DWC - The 401(k) Experts Announces Jamelle Moody as Principal

DWC 09/1/20

In the News: DWC Announces Jamelle Moody as Principal

HOUSTON, TX. – September 1, 2020 - DWC - The 401(k) Experts, an industry leader in providing 401(k) plan compliance, defined benefit services, consulting services and third-party plan administration is pleased to announce that Jamelle Moody will be a member of the partnership’s Operating Committee effective September 1, 2020 as Principal.

Is There an "Easy Button" for Setting Up a New Retirement Plan?

DWC 09/1/20

Facts As a small business owner, I’m constantly looking for cost-effective ways to improve the benefits I offer my employees. My industry is a competitive one, and it’s important to me to have a package that helps attract top talent and retain current employees too. Recently, my attention has turned toward implementing a retirement plan, but it ...

Your Definition of Compensation Isn't in the ERISA Dictionary? We've Got a Fix for That.

DWC 08/27/20

Getting creative with the plan’s definition of compensation can be an effective way to target benefits, budget your benefit dollars, and maintain consistent benefit levels from year to year. However, with that creativity comes added layers of testing and compliance to concern yourself with. And, if you sponsor a safe harbor plan, those rules can ...

How Can I Minimize my Risk When Reviewing and Approving Hardship Withdrawals?

DWC 08/25/20

DWC 401(k) Q&A: How Can I Minimize my Risk When Reviewing and Approving a Hardship Withdrawal?

Facts As a plan sponsor, I want my employees to have access to their retirement accounts in the event of a financial emergency. I know that offering hardship withdrawals could satisfy that goal, but after doing some reading, I’m a little nervous about the risk associated with reviewing and approving these types of requests. Not only that, but I ...

One and One Makes Five: Calculating the Minimum Required Contribution

DWC 08/20/20

In our last episode, we showed how the cash balance benefit for our owner, Robert Smith, accumulates over time. In our Perfect World (no offense Huey!), Robert contributes exactly $100,000 to the plan each year, and the investment return is exactly 3% to match the interest crediting rate. When Robert is ready to retire at the end of ten years, the ...

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