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

Do We Have to Provide New Paperwork When a Participant Requests a Second Distribution?

DWC 06/16/20

Facts When a participant requests a distribution from our plan, I provide them with a with a package that includes an election form and a bunch of other information. A participant who terminated and took a distribution last year received an additional company contribution and, as a result, has additional money in her account and is asking for a ...

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

DWC 06/9/20

DWC 401(k) Q&A: Do We Have to Consider Pay Before a Participant is Eligible When Calculating Company 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 determine the matching contributions, the TPA almost always has true-up contributions for me to make. Taking a closer look, it seems like these true-ups ...

Who Signs Our Form 5500?

DWC 06/2/20

Facts The person in our office who handles many of our administrative functions, including those related to our 401(k) plan, will be retiring soon, so we’re reviewing many of our internal processes in anticipation of training someone new to take on those functions. We know that our Form 5500 must be filed by the end of July, so that particular ...

Should We Make Up for Earnings Lost as a Result of a Delayed Distribution?

DWC 05/19/20

Facts Over the past several months, our turnaround times for normal business processes have lagged somewhat as we have adjusted operations in response to the various stay-at-home orders. When participants in my 401(k) plan request distributions, I usually make them a priority and forward them along for processing by the next day at the latest. ...

How Much Fidelity Bond Coverage Are We Required to Have?

DWC 05/12/20

Facts We are in the process of reviewing all our various business insurance policies to determine which ones we need to keep, update, or eliminate. One the coverages on our review list is the fidelity bond for our 401(k) plan. Although our plan does invest some in regular mutual funds (about $200,000), the plan also holds some non-traditional ...

What Retirement Plan Filings and Records Must We Keep?

DWC 05/5/20

Facts We’ve sponsored a 401(k) plan since 2002 and the amount of paperwork and related records we’ve accumulated is incredible. Cleaning up these records has always been on my to-do list for a while, but it’s not the most exciting task. As much as I would like to I know I can’t just throw it all away, but it seems like the mountains of old filings ...

Can We Pay Plan-Related Expenses Out of Plan Assets?

DWC 04/28/20

DWC 401(k) Q&A Question of the Week: Can We Plan Plan-Related Expenses Out of Plan Assets?

Facts Like many businesses, we’ve been watching our cash flow carefully over the past several weeks. We’re making adjustments where necessary so that we can stay on top of the invoices we receive from our service providers. Among those invoices are a few related to expenses for our 401(k) plan. I think I’ve heard that I can pay those invoices ...

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.

Is There Any Coronavirus Relief for Participants Who Want to Postpone Plan Loan Payments?

DWC 04/14/20

DWC 401(k) Q&A: Is There Any Coronavirus Relief for Participants Who Want to Postpone Loan Payments?

Facts Several participants in our 401(k) plan currently have outstanding plan loans, and many others are looking to initiate them. However, given the current pandemic, many participants are concerned that they won’t have the funds available to continue making payments right now.

How Does the CARES Act Expand the Availability of Retirement Plan Loans?

DWC 04/7/20

DWC 401(k) Q&A Question of the Week: How Does the CARES Act Expand Availability of Plan Loans?

Facts Our 401(k) plan allows participants access to their accounts via hardship distributions and, for those at least age 59 ½, via in-service withdrawals. But with the economic uncertainty of the current environment, participants are now asking about taking loans from their plan accounts.

Plan Document

Plan Compliance

Defined Benefits Services

Mergers, Aquisitions & Related Company Analysis

Plan Corrections

Government Audits

Investment Advisor Support

Plan Corrections

Fiduciary Duties & Due Dilligence

Plan Distributions

Retirement Plan Design

Retirement Plan Investment Menu

Plan Sponsor Requirements

Corporate Structure / M&A

Qualified Plan Compliance

401(k) Q&A Blog

Visit the Full Blog

Question of the Week

Correction of the Quarter

In the News

Cash Balance Corner

Downloadable Resources

eBooks & Guides

Reference Materials

Media

Our Team

Join the 401k Experts

Recent Post

Categories

Categories

Only the Best Retirement Industry Content

As Featured In

Sign up to receive insights from DWC