Spring 2022- The Retirement Plan Company Newsletter

Timing of Deposits 401(k)/403(b) Deferrals and Loan Repayments New Information on Participation Statements: Lifetime Income Illustrations Upcoming Compliance Deadlines for Calendar -Year Plans Timing of Deposits401(k)/403(b) Deferrals and Loan Repayments One of the questions asked by your TPA during the annual census collection may be whether...

Which Type of Retirement Plan is the Best Fit for Your Business?

By: Scott M. Cloud, MBA, CPC There are several different types of plans from which business owners can choose to enable themselves and their employees to save for retirement.  The type of plan that is most appropriate for a business depends on a number of factors, including how the business is structured for tax purposes, how much the...

Pros and Cons of Automatic Enrollment in a 401(k) Plan

By: Scott M. Cloud, MBA, CPC A well-designed 401(k) plan can help to recruit and retain employees, and – for most workers who have access to a company 401(k) plan – it serves as the primary (or only) investment vehicle to accumulate savings for retirement.  To promote employee participation and retirement readiness, employers can choose to...

Startup Retirement Plan Tax Credit

By: Scott M. Cloud, MBA, CPC Employers that establish a brand new employee retirement savings plan are eligible for a tax credit for each of the plan’s first three years.  The tax credit amount is capped at $5,000 for each of the plan’s first three years (i.e., up to $15,000 total), but is limited by 1) the amount of the plan’s service fees...

The “Large Plan” Audit Requirement

By : Scott M. Cloud, MBA, CPC Retirement plan laws require that a company-sponsored retirement plan be subject to an annual audit if it satisfies the definition of a “large plan”.  The audit must be performed by an Independent Qualified Public Accountant (IQPA) and the audit report must be attached to the Form 5500 filing for that plan year. ...