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Finding Balance with Form 5500

Adam C. Pozek 02/24/23
It’s rare that updates to the Form 5500 warrant little more than a yawn, if anyone other than those who prepare the forms even notice.  That is NOT the case with changes issued by the Department of Labor today.  In nearly 250 pages of new regulations, revised instructions and sample forms, the DOL announced some changes for the 2023 plan year that ...
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Can We Require Employees to be Employed at Year-End to Receive a Safe Harbor Contribution?

DWC 07/30/19
QOTW - 7.30.2019 - Can We Require Employees to be Employed at Year-End to Receive a Safe Harbor Contribution - Plan Design
Facts Our company sponsors a safe harbor 401(k) plan.  Each participant receives a safe harbor nonelective contribution equal to 3% of his or her annual pay.  Our TPA calculates the safe harbor contribution for us after the close of each year, and we deposit it sometime before we file our company tax return for that year.  Each year, we have a ...
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How Does a Participant's Divorce Affect our 401(k) Plan?

DWC 07/23/19
QOTW - 7.23.2019 - How Does a Participants Divorce Affect our 401k Plan - Plan Compliance
Facts One of the participants in our 401(k) plan is going through a divorce, and we just received a court order directing us to provide a portion of his account to his ex-spouse.  I thought that retirement plan accounts had special protection against legal judgments.
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Are We Required to Force Former Employees to Take Their Money Out of Our Plan?

DWC 04/23/19
QOTW - 4.23.2019 - Are We Required to Force Former Employees to Take Their Money Out of Our Plan - Plan Distributions
Facts We just received our year end testing and it mentioned that we have several terminated participants with small balances that we are required to distribute from the plan.  I remember seeing something in one of our documents that mentioned distributions for account balances below $5,000, but I’m not entirely sure what that means or how I’m ...
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What is the Form 8955-SSA and What Does It Do?

DWC 04/2/19
QOTW - 4.2.2019 - What is the Form 8955-SSA and What Does It Do - Plan Compliance
Facts Our company has been very fortunate to have low turnover over the years.  Those that have left either were not eligible for our 401(k) plan, or they had very small balances and had their accounts forced out when they terminated.  We recently did have one longer-term employee leave us.  She was an active participant in our plan and has a ...
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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.

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