When it comes to deciding on a retirement plan, there are many choices, yet, one plan that is increasing in popularity is the cash balance plan. Compared to traditional 401(k) retirement plans, cash balance plans come with a twist and numerous benefits that you may not have been aware of. In this week's blog, let's take a look at the six things you may not know about cash balance plans. 1. Significant Tax Benefits Cash balance plans can bring tax benefits to the company. Whe

Below is an outline of the newly released 2021 contribution limits, which will take effect on January 1, 2021. There are not many increases in 2021. The key increases are: Annual compensation limit is increased from $285,000 to $290,000 Annual additions limit for defined contribution plans is increased from $57,000 to $58,000 Social Security Wage Base is increased from $137,700 to $142,800 SEP Threshold is increased from $600 to $650 ESOP: Account Balance is increased from

Currently, the law allows employers to design their retirement plans to exclude part-time employees who work less than 1,000 hours per year from plan participation. Under the SECURE Act, Congress elected to reduce eligibility standards to expand retirement plan coverage. Beginning in 2021, 401(k) plans are required to provide dual eligibility coverage—meaning that employees who have worked at least 500 hours per year for at least three consecutive plan years are eligible for

Every so often, all qualified retirement plans must be updated to reflect legislative or regulatory changes. Some of these updates are made through plan amendments, while others require plan documents to be rewritten—known as "restating" the plan. The deadlines for adopting such updates are usually dependent on the type of plan and plan documents. For example, defined contribution plans (such as a 401(k)) are generally restated every six years. Amendments may still be require

By now, you have heard a lot about the retirement account legislation changes that came with the passing of the Setting Every Community Up for Retirement Enhancement (SECURE) Act in December 2019. We are focusing on just one of those changes in this article: the increased required minimum distribution (RMD) age for all retirement accounts. Before the SECURE Act, someone with money in a traditional IRA or employer-sponsored retirement plan was required to begin taking withdraw

The Coronavirus Aid, Relief, and Economic Security (CARES) Act and other COVID-19-related laws were passed in late March 2020. Not only were $2 trillion of economic stimulus dollars made available to private citizens and small businesses, but some temporary rules were implemented for retirement plans which, for a time, will have an impact on how these plans are administered. In this post, we will give an overview of the changes stemming from these new rules. The CARES Act al