401(k) Q&A | Plan & Industry Content From DWC - The 401(k) Experts

Who are Leased Employees & Are They Eligible for my 401(k) Plan?

DWC 04/16/19

QOTW - 4.16.2019 - Who are Leased Employees and Are They Eligble for my 401k Plan - Plan Compliance

Facts I own a small manufacturing company that specializes in office supplies, and I sponsor a 401(k) plan for my employees. One of my former employees, Tim Halpert, worked full-time with me for the past several years but recently left to work for a staffing agency called Prestige Worldwide. Tim was a great employee for many years, and Prestige ...

What Common Compliance Issues Should We Be Watching For?

DWC 03/19/19

QOTW - 3.19.2019 - What Common Compliance Issues Should We Be Watching Plan - Plan Compliance

Facts Our company sponsors a 401(k) plan, and we want to make sure we do everything correctly. We have a great staff and have put processes in place to help ensure we operate the plan in a compliant manner. With all the moving parts, however, there is still a concern that we might miss something.

Are RMDs Required for a Retiree Turned Independent Contractor?

DWC 11/27/18

This QOTW has been updated to reflect changes made by the SECURE Act, which was signed into law on December 20, 2019. Participants who were born on or before July 1, 1949, are required to start taking their RMDs in the year they turn 70 ½. Those born after that date are subject to RMDs on reaching age 72. Facts We have an employee who attained age ...

Can We Change our 401(k) Plan Eligibility Requirements to Exclude Employees Who Have Already Joined?

DWC 10/9/18

QOTW - 10.9.2018 - Can We Change our Plan Eligibility Requirements to Exclude Employees Who Have Already Joined - Plan Design

Facts Our company has quite a few employees who only work a few hours each week. When we setup the 401(k) plan, we wanted to allow all our employees to save, so we set the eligibility requirement at the first day of the month following an employee’s hire date. Unfortunately, hardly any of our part-timers are contributing, and it has become ...

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

DWC 07/17/18

QOTW - 7.17.2018 - Employee Joined the Plan Too Soon - Qualifed Plan Compliance

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 ...

What Compensation Should We Use to Calculate Company Contributions to our 401(k) Plan?

DWC 06/26/18

Facts Our company has a safe harbor 401(k) plan. In addition to employees making deferrals, we make a company contribution equal to 3% of each person’s compensation. We deposit both types of contributions each pay period, so in theory at least, we should be all set by the end of each year. However, it seems that each year, our TPA comes back to us ...

Can We Exclude Seasonal Employees From Our 401(k) Plan?

DWC 06/5/18

Facts Our company’s workload fluctuates throughout the year with big spikes during the summer. As a result, we often hire seasonal workers who help us out during the busy times, but do not work during the regular workload months.

Can We Exclude Seasonal Employees From Our 401(k) Plan?

DWC 02/27/18

QOTW - 2.27.2018 - Can We Excluse Seasonal Employees from our 401k Plan - Retirement Plan Design

Facts Our company has a retail store that sells items like patio furniture, swimming pool supplies, and equipment. We also have a department that cleans and services swimming pools. The service department is much busier during the summer months, so we hire students to fill these seasonal roles while they are on break from school.

Who Must Receive Retirement Plan Blackout Notices?

DWC 10/3/17

Facts We have selected a new recordkeeper for our 401(k) plan. We are told that there will be a period of eight business days when our participants are not able to log in and manage their accounts. We know that we have to provide notice at least 30 days ahead of time to everyone who is affected.

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