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Tag: Pension

401(k) Plans & Automatic Enrollment?

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A recent study by Employee Fiduciary examined the negative aspects of automatic employee enrollment in 401(k) plans, particularly for smaller plans. Only 8.7% of small business plans (average of 25 participants with assets of $1M) automatically enroll eligible employees as opposed to 68% of larger plans. Why the contrast when automatic enrollment is traditionally seen as an […]

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14 Aug
401k

Do S-Corporation Distributions count for 401k & Pension Plans?

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S-Corporations, Distributions, W-2 Wages, Self-Employment Tax, 401k & Pension Plans & their interaction – it’s all about balance. So, you’ve talked to your accountant & they tell you to minimize your W-2 wages to limit your self-employment taxes. Then, you talk to your investment advisor and they explain the advantages of tax-qualified retirement plans such […]

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13 Aug
401k

Can a LLC member contribute to a 401(k) Plan?

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Generally 401(k) deferrals & contributions are allowed, but there are exceptions. The biggest issue to consider is whether or not the member/owner is providing material services that are income producing for the LLC. Here is the basic checklist or list of things to consider: Under Internal Revenue Code Section 401(c)(1), the IRS states that “employee” […]

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GE Retiree Health Care Law Suit Dismissed by Judge

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Pay attention to the language in your employee handbook! In summary judgement this week, US District Judge Lynn Adelman in Milwaukee dismissed a suit filed by General Electric (“GE”) retirees claiming the plaintiffs have “not shown that they were cognizably harmed by GE’s fiduciary conduct with respect to the plans.”. In 2012, GE eliminated its […]

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07 Jun
Vanguard How America Saves 2017 based on 2016 Defined Contribution Data - Target-Date funds roll on

Target-Date funds expand their reach in 401(k) plans

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Vanguard Group recently issued their 110 page “How America Saves 2017” report on the behavior of defined contribution plan participants in the plans that they record-keep. The trend toward professionally managed options – primarily target-date funds – continues with 53% of participants using such accounts in 2016 (46% were in a single target-date fund). This is […]

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07 Feb

New PBGC premium due date rule impacts small plans

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For those defined benefit (“DB”) pension plans covered by the Pension Benefit Guaranty Corporation (“PBGC”), the PBGC has adopted a new uniform rule for premium due dates.  This new rule is applicable for the 2014 and later plan years.  Under the current rules, DB Plans covering less than 100 participants (i.e., small plans) have been […]

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07 Feb

Looking to add a 401(k) Plan for your company?

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The safe harbor deadline for 2016 is October 1st so time is of the essence If you or your clients have been thinking it’s time to add a 401(k) Plan for yourself & your employees, the time is now. As you’re likely aware, the IRS offers a “Safe Harbor” feature that means if you are […]

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07 Feb

Lost your retirement account? You’re not alone.

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In recent years workforces have become increasingly transient. One unintended consequence is that when employees leave their jobs, many also leave benefits behind. Years later these benefits may be difficult to find, or employees may not even know that such benefits are owed. Steps to Finding Your 401(k) and Pension Plans 1. Locate your old […]

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Can an employee stock ownership program (“ESOP”) work for you?

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As a small business owner, you may have considered selling your business to a competitor or shopped it via a business broker.  One option you might wish to consider is selling it to your employees via an Employee Stock Ownership Plan (“ESOP”).  While every idea has pros & cons, for the business owner an ESOP […]

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Senate Unemployment Bill, MAP-21 & Pension Funding

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For everyone following the ongoing negotiations over extension of unemployment benefits, the current language would impact sponsors of defined benefit (“DB”) pension plans by lengthening the phase-out period for the pension funding relief under “MAP-21”.  As a sponsor of a DB plan covered by ERISA, this would extend the MAP-21 phase out date from 2018 […]

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