Topic Archive: Plan Compliance

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

DWC | 07/17/18


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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Can You Make Extra Payments on a 401(k) Loan to Pay It off Faster?

DWC | 05/29/18


A participant in our 401(k) plan took out a loan a couple years ago. She could only afford to make the bare minimum payments at the time, but is now in a financial position to pay down the loan more quickly.

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What Is the Deadline to Correct a Failed ADP/ACP Test?

DWC | 04/24/18


Every couple of years, our 401(k) plan fails the ADP/ACP test by a small margin. Since we don’t always fail the test, gathering our year-end census information to send to our TPA sometimes isn’t as high a priority as some of the other projects necessary to close out the year.

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How Do You Correct An Excess Deferral?

DWC | 04/17/18


Due to a glitch in our payroll system, one of the participants in our 401(k) plan contributed more than the IRS limit last year. It came to light while she was preparing her individual income tax return, and she is now asking us to return the excess amount to her?

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DWC on Enterprise Radio: How Selling a Business Can Impact Your Retirement Plan

DWC | 02/26/18
DWC partner Jen Gibbs Swets recently spoke with Enterprise Radio host Eric Dye to discuss selling a business and the impact it has on retirement planning.

Swets, who has more than 15 years of experience in the industry, shared her expert opinion and advice on how to handle this kind of transaction, what to expect (both the good and the bad), and how to deal with the parties involved. She noted that selling a business can be an overwhelming process, but advised listeners to rely on the people that they trust.

“The most important thing is surrounding yourself with the right people, the trusted advisors who have been there with you throughout the time you’ve built your business and who know you, know your motivations, and can really support you through it,” Swets said.

During the rest of their conversation, the pair unpacked the different challenges that come with selling your business and retirement planning. To hear more insights into this topic, you can hear the rest of the podcast here on Entrepreneur Podcast Network.
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DOL and IRS Audits: How DWC's Annual ERISA Compliance Review Helps Plan Sponsors

DWC | 10/19/17

Our first piece of advice for audited plan sponsors? Don't panic. 

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Does Your Third Party Administrator Make a Big First Impression?

DWC | 10/16/17

Service providers are judged by by many factors and one of the most important is managing to zero service issues. And considering how important plan compliance is, issues with plan compliance via a government audit is not considered a factor—until it is. 

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When Can We Change Our ADP/ACP Testing Method?

DWC | 10/10/17


We have a 401(k) plan that allows for both employee deferrals and a company match. Our annual testing each year is based on the amounts contributed in the previous year. That has allowed us to notify our highly compensated employees of the maximum they can contribute each year to ensure we pass testing.

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Why Compliance Services Are Important for a Plan Sponsor

DWC | 10/9/17

Retirement plan compliance is a big deal to the IRS.  After all, the tax deductions that both plan sponsors and participants receive each year for contributions to retirement plans surpass deductions taken for charitable donations and health insurance premiums.  With so much at stake, the IRS wants to be sure everyone is playing by the rules.

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10 Common Retirement Plan Compliance Failures Found by the IRS

DWC | 10/2/17

Contrary to what some people may think while writing out checks for penalty fees, the IRS  doesn't actually want to find compliance issues in retirement plans.

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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.