As the Retirement Plan Consultant (RPC) for Qualified Retirement Plans, it is our duty to ensure the legal plan documents stay up to date and compliant with the IRS regulations and law changes that affect retirement plans. The IRS mandates that Defined Contribution Plans (such as 401(k), Profit Sharing, Money Purchase, etc.) be restated every six years to ensure the documents are current and include all changes that have occurred during the prior six-year period. RPCSI submit

Part Two: Testing and Valuation This is a continuation of a previous post. If you have not read part one, which covers checking census data and balancing asset statements, you will want to do so before you continue reading. You can find Part One here . When all the data is in, everything matches, and it all balances as it should, the Consultant can begin testing. If the plan fails testing, the Consultant first checks that there are no coding errors that caused the plan to f

Part One: Gathering Census Data and Balancing Asset Reports If you sponsor a retirement plan for your employees, you will soon discover that the bulk of the government compliance work done by your Retirement Plan Consultant (RPC) occurs in the first quarter of each year. Your duties as a Plan Sponsor will also become more demanding during that time as you gather the required data and have more frequent communications with your RPC. We often get questions on why the RPC is r

An employer-sponsored retirement plan is a cost-effective benefit strategy that is offered to employees at no or low cost. These benefit programs often include other services such as medical insurance for employees and tax breaks to the employer. Retirement plans fall into one of two general categories: defined benefit plans, in which the retiree is promised a defined monthly amount (also called pension plans), and defined contribution plans, where the employer, employee, or

Are you doing more business with - and through - third party administrators? If so, you're not alone.

Your 401(k) plan census contains important information about your employees. This information is used to complete the annual census.