Compensation

Extra! Extra! Stay up to date on the latest news about the DWC team.

The retirement plan landscape is ever evolving. We distill the details so you don’t have to!

We’ve corralled the best news from inside the beltway – not only regulations, but also new legislation from Congress as well as relevant guidance from the IRS and Department of Labor. In true DWC fashion, we don’t just repackage a recitation of the rules, we provide our thoughts and commentary about what those rules mean to you.

We know cash balance rules can be intimidating! Settle into the Cash Balance Corner and let us break it down for you.

Have 401(k) questions? We have 401(k) answers! We bring you answers to many of the common questions we receive.

A behind-the-scenes look not at how the sausage is made, but why we make it the way we do. (Hint: It’s all about the best interests of the client.)

We’re all about learning from other people’s (alleged) mistakes. We might not be attorneys, but we still follow benefits-related cases and summarize lessons and key take-aways. No hourly fee needed for these insights!

A deeper dive into retirement plan topics doesn’t have to be headache-inducing. Our Pension Primer articles provide depth of information without depth of jargon!

10/22/24

DWC | 10/22/2024

Compensation Jeopardy: Things You Might Not Know About Your Retirement Plan

According to the IRS, using incorrect compensation amounts to calculate retirement plan benefits and conduct annual compliance testing is one of the most common errors they see. How can such a ...

DWC | 01/19/2021

Which Financial Details Do I Report On My Year-End Census?

Facts Last week, you explained some the demographic data points that get reported on the annual census. Now, I’ve got some questions on the financial information I’ve been asked to provide to my TPA. ...

DWC | 12/1/2020

Overtime Is Up and Bonuses Are Down: Will This Year's Irregular Compensation Impact our Retirement Plan?

Facts We sponsor a 401(k) plan for our employees and provide a company matching contribution to those who defer. Our plan specifies that in calculating that match, we only consider employee base pay ...

DWC | 08/27/2020

Your Definition of Compensation Isn't in the ERISA Dictionary? We've Got a Fix for That.

Getting creative with the plan’s definition of compensation can be an effective way to target benefits, budget your benefit dollars, and maintain consistent benefit levels from year to year. However, ...

DWC | 07/23/2020

Just Can't Get Enough...Savings from your 401(k) Plan

Now that we know the basics, we can apply our knowledge to (almost) real life scenarios. We will follow our fictitious company: Robert Smith, Inc., an S-corporation with no employees other than the ...

DWC | 06/9/2020

Do We Have to Consider Pay Before a Participant is Eligible When Calculating Matching Contributions?

Facts Each year, after our last payroll in December, I submit my census information to the TPA for our 401(k) plan. Even though I’ve looked at each participant’s total deferrals for the year to ...

DWC | 04/21/2020

Should We Include Government-Mandated Coronavirus PTO When Calculating Company Contributions?

Facts We have several employees who have had to take time off from work either because of a loss of childcare or to care for affected family members due to the coronavirus. As a result of recent ...

DWC | 06/25/2019

Which Comes First: The Contribution or the K-1?

Facts As a self-employed individual, I run a successful business and have set up a retirement plan to provide for tax-sheltered savings. When its time to determine the contribution amount each year, ...

DWC | 05/21/2019

Which Compensation Do You Use When Your Company Fiscal Year is Different Than Your Plan Year?

Facts When we set up our 401(k) plan, our partnership operated on a fiscal year that ran from July 1st to June 30th. We set the 401(k) plan year to line up with our company’s fiscal year. We recently ...

DWC | 03/19/2019

What Common Compliance Issues Should We Be Watching For?

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 ...

DWC | 07/10/2018

Can A Departing Employee Make 401(k) Contributions From Severance Pay?

Facts When certain employees terminate employment with our company, we agree to continue severance payments for a period of time after they leave. Some of these employees have asked us to continue ...

DWC | 06/28/2018

Correcting a Failure to Withhold Deferrals from Eligible Compensation

Facts ABC Company maintains a 401(k) plan that includes the following provisions: It operates on a calendar year. Compensation is defined as W2 wages with pre-tax deferrals added back and no ...

DWC | 06/26/2018

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

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 ...

DWC | 03/13/2018

Can Bonuses Be Excluded From Retirement Plan Compensation?

Facts Our company pays a number of different types of bonuses—signing bonuses, spot bonuses, holiday bonuses, production bonuses, etc. You get the idea. We know that bonuses paid once the employee ...

DWC | 06/23/2017

Nondiscrimination Testing: Compensation Ratio Test

The compensation ratio test is one of several nondiscrimination tests a plan must satisfy in order to remain compliant with IRS rules. The term “compensation” can seem uncomplicated; however, when we ...

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Compensation

Extra! Extra! Stay up to date on the latest news about the DWC team.

The retirement plan landscape is ever evolving. We distill the details so you don’t have to!

We know cash balance rules can be intimidating! Settle into the Cash Balance Corner and let us break it down for you.

Have 401(k) questions? We have 401(k) answers! We bring you answers to many of the common questions we receive.

A behind-the-scenes look not at how the sausage is made, but why we make it the way we do. (Hint: It’s all about the best interests of the client.)

We’re all about learning from other people’s (alleged) mistakes. We might not be attorneys, but we still follow benefits-related cases and summarize lessons and key take-aways. No hourly fee needed for these insights!

A deeper dive into retirement plan topics doesn’t have to be headache-inducing. Our Pension Primer articles provide depth of information without depth of jargon!

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