Topic Archive: Legislation

Can We Allow a Distribution for a Coronavirus-Related Hardship?

DWC | 03/31/20

Facts

Some of our employees are dealing with financial challenges due to the coronavirus situation, and they are asking whether they can access their 401(k) accounts.  Our plan allows for loans and for in-service distributions at age 59 ½, but some of these employees are younger than that.  As a plan sponsor, I’ve always felt strongly that our 401(k) plan was a tool to save for retirement; however, these are unprecedented times, and I’d like to find ways to support my employees’ needs.

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DWC News Update | The CARES Act: Federal Coronavirus Relief

DWC | 03/30/20

On Friday afternoon, March 27th, Congress passed, and the President signed, the Coronavirus Aid, Relief, and Economic Security (CARES) Act - sweeping legislation intended to provide much-needed relief due to the coronavirus public health emergency.  At nearly 1,000 pages in total, the legislation covers a lot of ground in a many areas.  With respect to company-sponsored retirement plans, the relief focuses on four areas:

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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 these part-time employees have never entered the plan.

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DWC News Update | The SECURE Act Has Snuck Through

DWC | 12/17/19

(Updated 12/23/2019) Late Friday evening (aboard Air Force One leaving DC for his holiday retreat), President Trump signed the spending bill that included the SECURE Act. In a bit of last-minute maneuvering in Washington, DC, the House of Representatives added the provisions from the SECURE Act to the spending bill that had to be passed by Friday to avoid a government shutdown.  Although the provisions that were problematic before are still part of the mix, the political climate is such that both parties wanted political wins and neither wanted to risk being branded as the one that “allowed” or “forced” another government shutdown.

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Meet the MEPs: What's Next?

DWC | 09/18/19

Welcome to the finale of our series on the Department of Labor’s new regulations, updating the definition of “Employer” under ERISA to extend the availability of multiple employer plans to more businesses.

We’ve covered a lot of ground so far:

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Meet the MEPs: Grab Bag

DWC | 09/11/19

The Department of Labor’s new regulations that expand the availability of multiple employer plans cover quite a bit of ground.  In previous posts, we’ve explored Association MEPs, PEO MEPs, Corporate MEPs, and working owners.

Though not technically part of the regulations themselves, the Department of Labor also addresses a grab bag of questions that came in through the comment process in the preamble.  In this post, we will run through some of those items.

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Meet the MEPs: Corporate MEPs

DWC | 08/28/19

Thanks to the Department of Labor’s recently published regulations, we went from just having multiple employer plans top having several different types of MEPs.  We’ve already covered association MEPs and PEO MEPs, so now it is time to take a quick look at what the DOL calls “corporate MEPs.”

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Meet the MEPs: PEOs

DWC | 08/21/19

The next item up for bids in our series on the Department of Labor’s new regulations on multiple employer plans is on professional employer organizations, more commonly referred to by their acronym: PEOs.  These organizations have an interesting history when it comes to retirement plans.

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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 the DOL have been especially forthcoming with guidance.

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Meet the MEPs: Working Owners

DWC | 08/14/19

Unless you’ve been on vacation somewhere off the grid, you’ve likely heard the news and read the headlines that the Department of Labor recently published new regulations that expand the availability of multiple employer plans.  While that is true, what those new rules actually do is to change ERISA’s definition of the term “Employer” so that more types of organizations fit within it, thus allowing them to sponsor MEPs.

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