Topic Archive: EPCRS

What Does Safe Harbor Mean, Exactly?

DWC | 05/28/19

Facts

When we set up our new 401(k) plan last year, we decided not to add a safe harbor provision because we were not in a position to commit to the required contribution.  Then we heard our TPA say something about our deferral deposits fitting within the safe harbor deadline.  Now I’m just confused.

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Which Compensation Do You Use When Your Company Fiscal Year is Different Than Your Plan Year?

DWC | 05/21/19

Facts

When we set up our 401(k) plan, our partnership operated on a fiscal year that ran from July 1st to June 30th.  We set the 401(k) plan year to line up with our company’s fiscal year.  We recently changed our company’s fiscal year to follow the calendar year and didn’t think to notify our TPA to discuss the impact to the Plan.  Now, they are asking for annual census information (including compensation) in order to prepare the profit sharing allocation and complete the required testing.

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Are Missed Deferrals and Late Deferral Deposits the Same Thing?

DWC | 05/14/19

Facts

Our company sponsors a 401(k) plan.  One of our newer employees, Jane Smith, met the eligibility requirements and should have joined the plan on January 1st.  Due to an oversight, we forgot to enroll Jane in the plan until she asked about it a couple months later.  We assume that we need to make some sort of correction, and we’ve done some online research to figure out next steps.  We’ve seen references to missed deferral opportunities and late deferral deposits, but to be honest, it’s all a little confusing.

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DWC News Update: The IRS Helps Those Who Help Themselves

DWC | 04/22/19

The IRS did its part to make Friday, April 19th a really good Friday for those who sponsor qualified retirement plans.  After not making many friends when it jacked up the user fees for the Voluntary Correction Program (VCP) a year or so ago, the IRS has responded to industry requests (that DWC representatives helped draft) by now allowing plan sponsors to self-correct a number of more common missteps without the need to submit anything to the IRS at all.

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Decoding the Alphabet Soup: What's With All the Acronyms? | Part 3

DWC | 09/11/18

Facts

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.

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An Employee Joined the Plan Too Soon:  No Harm, No Foul or Failure In Need of a Fix?

DWC | 07/17/18

Facts

In order to be eligible for our company’s 401(k) plan, employees must have worked for us for at least a year and be a minimum of 21 years old.  They can join the plan on the next January 1st or July 1st following the date they meet those requirements.  Recently, we discovered that we allowed an employee to start contributing to the plan before he met those requirements.  He also received company matching contributions.

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