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Am I Now Required to Include Part-Time Employees in my 401(k) Plan?

DWC 01/28/20
Facts As the owner of a beachside hotel, I sponsor a calendar year 401(k) plan for my employees.  In the summer we hire many part-time employees to assist with the uptick in guests and activities.  Our plan has always required employees to reach age 21 and complete a year of service before becoming eligible.  Traditionally, this has meant that ...
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Uncashed Distribution Checks? The IRS Provides New Guidance...Sort Of

DWC 08/15/19
Just about anyone who has dealt with a 401(k) plan – either as a plan sponsor or a service provider – for any amount of time has had to deal with the issue of participants not timely cashing plan distribution checks.  There are all sorts of potential concerns that range from tax implications to fiduciary responsibilities, but neither the IRS nor ...
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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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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 - and correction is required - despite everyone’s best efforts to follow the rules.
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Your Tax-Exempt Status Has Just Been Revoked!

Adam C. Pozek 04/19/11
It’s funny how the human brain (or maybe it’s just my brain) forms associations with words or phrases.  Whenever I hear the word “revoked,” I immediately think of a scene from one of the Lethal Weapon movies.  The bad guy had been using his diplomatic immunity to get away with all sorts of nefarious deeds.  At the end of the movie as he lay ...
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Are You Kidding? The Fall Will Probably Kill You!

Adam C. Pozek 03/25/11
My good friend and benefits attorney Ilene Ferenczy sends out an e-newsletter from time-to-time.  The Ferenczy Flash always includes timely, practical information for plan sponsors and service providers.  The edition she sent earlier this week highlights a very important point that often gets lost in the 401(k) shuffle - while all of the fiduciary ...
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What’s The Problem With PTINs?

Adam C. Pozek 02/23/11
I must confess that I have been very surprised by the vocal opposition to the new Preparer Tax Identification Number (PTIN) requirements.
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403(b) Plan Termination: Fact or Fiction?

Adam C. Pozek 02/22/11
Over the last several years, the answer has been a little of both.  Beginning with the 2009 effective date of the IRS overhaul to the 403(b) regulations, it was establised that 403(b) plans could, indeed, be terminated.  However, that legal fact has been somewhat of a practical fiction for plans funded by individual contracts.  The reason being ...
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Confession Is Good For The Soul…And The Checkbook

Adam C. Pozek 09/24/10
Over the last few weeks, I have spoken with at least four plan sponsors who just became aware that they missed the April 30, 2010 deadline to restate their plan documents for EGTRRA.  For those in certain federally declared disaster areas, the deadline was extended to July 30, 2010.
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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.