It is no secret that a corporate 401(k) plan provides many benefits to both employers and employees. But what is perhaps lesser known is that how that plan is designed has a huge impact on the resulting benefits. Business owners must identify the features and options they want to see in a plan before sitting down with an administrator. Owners should consider the needs of their employees when designing a plan. When owners include their employees’ wishes in their planning, they

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

One of the most popular 401(k) Plans, Safe Harbor is great for owners and employees alike. The Safe Harbor plan design allows business owners to provide retirement benefits to their employees while simultaneously ensuring they can save at the maximum rate allowed by the IRS. While Safe Harbor plans offer many benefits, there are strict rules that must be followed and some potential drawbacks that must be considered. In this post, we will provide you with information that may

Someone with discretionary authority over an organization’s 401(k) plan administration, is considered a “Fiduciary.” A fiduciary has many administrative responsibilities and must perform them with diligence and prudence. They are responsible for acting in the best interest of plan participants and beneficiaries, and as such, they are held to very strict standards of conduct. Failure to understand these responsibilities can lead to administrative errors which can result in per

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