Covid-19 prompted the IRS to update its rules on substitute mortality tables. Gain insight on what this mean for defined benefit plans.

Employer-sponsored retirement plans are generally divided into two primary categories: defined benefit plans and defined contribution plans, both of which are covered by the Employee Retirement Income Security Act (ERISA). Both types of plans provide a variety of advantages to employees and employers but determining which one is the best fit for any given company requires an understanding of the key differences between these plan categories. Let’s examine these plans in more

What is a cross-tested plan? A cross-tested plan is a defined contribution plan that uses a certain testing method to show that the plan does not discriminate in favor of highly compensated employees. To be entitled to favorable tax treatment, a qualified retirement plan cannot discriminate in favor of highly compensated employees (HCEs). An individual is generally a highly compensated employee for a particular year if the individual earned over a certain dollar amount in the