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Adding an Employee to Your Cash Balance Plan? You Should be Thinking This Article is "Just What I Needed"

DWC 12/3/20
Sponsoring a retirement plan can provide significant benefits to a company (and its participants). But with great benefits comes great responsibility…responsibility to follow all of the various regulatory requirements. Since these plans provide hundreds of billions of dollars in tax deductions each year, Congress and the various agencies want to ...
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Overtime Is Up and Bonuses Are Down: Will This Year's Irregular Compensation Impact our Retirement Plan?

DWC 12/1/20
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 and exclude “irregular” forms of pay (specifically bonuses and overtime). This allows us to be more precise when we are building the expected cost of ...
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DWC's Thanksgiving Dinner Prep Playlist

DWC 11/24/20
Facts All year long we've been leaving little rock 'n' roll Easter eggs in our Cash Balance Corner feed. ICYMI: Each post title incorporates one of our favorite songs. And for our 20th century rock music fans, our  retirement plan-savvy business owner, Robert Smith's name should ring some bells. (Hint: His music has the cure for what ails you.)
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How Do Furloughed Employees Impact Our Plan at Year-End?

DWC 11/17/20
Facts Like many businesses, we had to furlough some employees earlier this year in response to the coronavirus shutdowns. We’ve been fortunate enough to bring back a few of these employees, but a number still remain in limbo. As we approach year-end, we’ve started wondering how this might affect our 401(k) plan and potential company contributions.
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Are There Plan Design Options We Should Consider as Part of the Mandatory Cycle 3 Plan Document Restatement?

DWC 11/10/20
Facts We’ve been following your recent posts about how making even small changes to certain plan provisions can make managing the plan easier without sacrificing our objectives. Making life easier, while minimizing chances for errors…you’ve really been speaking our language.
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Cash Balance Compliance: "Takin' Care of Business"

DWC 11/5/20
Wow! We have covered a lot of ground over the last few entries, learning about how cash balance benefits are earned and funded. So far, our plan sponsor Robert Smith, Inc. has dealt with the complexities of an owner-only plan. Now, it’s time to take a step back to take a look at some of the more mundane-sounding but still very important ...
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Does Counting Hours of Service for Plan Eligibility Have to be a Nightmare?

DWC 11/3/20
Facts We’ve been following along with the last few Questions of the Week and think we’re pretty comfortable with how we want to set up eligibility for our 401(k) plan. We’re definitely looking to implement a one year of service requirement (with 1,000 hours during that year) and quarterly entry dates. We understand that this design may result in ...
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What's the Simplest Way to Set Up a One Year Eligibility Waiting Period for our 401(k)?

DWC 10/27/20
Facts We are looking to set up a 401(k) plan for our company. Our workforce includes both hourly and salaried employees as well as full-time, part-time, and seasonal workers. For now, we really want to focus on our full-timers. It is our understanding that the maximum timeframe we can have employees wait before becoming eligible is one year. With ...
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How to "Push It" (But Not Too Much) by Prefunding Cash Balance Plans

DWC 10/22/20
Thanks to the last few CB Corner entries, we now know that our plan sponsor Robert Smith, Inc. has a wide range of options when it comes to making contributions to its cash balance plan.
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How Can We Tweak Our Plan's Eligibility Requirements to Make Administration Easier?

DWC 10/20/20
Facts We’ve sponsored our 401(k) plan for several years now, and it’s been very well-received by our employees. Believe it or not, though, one of the biggest challenges we have had is around when employees become eligible. Some of our staff are salaried, while others are hourly. We have both part-time and full-time employees, and we are also ...
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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.