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

Can We Offer Higher Profit Sharing Contributions to Employees Based on Performance?

DWC 07/28/20

Facts We’ve had a 401(k) plan for years, but we are now looking at ways to make it a more strategic part of our overall compensation package. In one of your previous Questions of the Week, you mentioned that we cannot really give employees the choice between higher pay or a profit sharing contribution, but we would like to explore ways to use ...

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

DWC 07/23/20

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 owner. Robert is an accomplished song writer who is currently living off royalties from his hits. Robert sponsored a SEP for many years, then at the ...

Can We Increase Profit Sharing Contributions and Decrease Salaries to Improve Testing and Save Money?

DWC 07/21/20

Facts We want to make job offers to some new employees and are looking strategically at our overall compensation package. Some of these candidates are seeking upwards of $130,000 which will make them highly compensated employees (HCEs) in 2021. We are thinking about negotiating a lower salary of $100,000 with a promise of $30,000 in profit sharing ...

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

DWC 04/21/20

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 legislation, they qualify to receive compensation during their leave from work.

Your Safe Harbor Actually Isn't? We've Got a Fix for That!

DWC 08/22/19

We’ve been through a few Corrections of the Quarter together now, and we appreciate you being along for the ride. We feel this is pretty good stuff but, at the heart of it all, we’re pension geeks (no point in hiding it). And while the rules and regulations get us going, we have a geeky passion for the opportunity to find creative solutions.

How Can We Improve ADP/ACP Test Results Without Offering Safe Harbor?

DWC 06/18/19

Facts My architectural firm sponsors a 401(k) plan. We have 38 architects and 2 administrative assistants. We currently provide a matching contribution to participants and, some years, a profit sharing contribution too. I’m reluctant to utilize a safe harbor design, because I really value the vesting schedule on our employer contributions to help ...

Retirement Planning & Regulatory Trends You Should Be Watching

DWC 08/16/18

Industry Insight Round Up 8.16.2018_blog header image

Feeling out of the loop on industry happenings this summer? DWC stays on top of what's trending, and our self-proclaimed pension geeks often offer their insights in industry publications. Get caught up with this month's round-up:

What Are The Different Types of 401(k) Contributions And How Do They Work?

DWC 03/27/18

Facts Our business is considering setting up a 401(k) plan for our employees. We know that it can include both employee contributions and company contributions, but we keep hearing about all sorts of other contributions. There are profit-sharing contributions, matching contributions, qualified nonelective contributions, and Roth contributions.

How Should We Handle It If We Accidentally Overfund Our 401(k) Match?

DWC 02/20/18

QOTW - 2.20.2018 - How Should We Handle It It We Accidentally Overfund our 401k Match - Plan Corrections

Facts Our company sponsors a safe harbor 401(k) plan with a match, and we also make a profit sharing contribution each year. Our payroll company calculates match and profit sharing contributions along the way, and we fund both of those each pay period. This year, when our TPA calculated the total match and profit sharing contributions for the ...

Exactly the Same but Completely Different

Adam C. Pozek 09/17/14

At the end of August, I made my first trip to Burning Man, an annual event held in the Black Rock Desert of northern Nevada. With 10 guiding principles, it involves art, music and free-spiritedness. This experiment in temporary community sees 65,000+ attendees converge on a dried-up lake bed, build a temporary city and leave behind no trace that ...

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