By: Scott M. Cloud, MBA, CPC Including a safe harbor contribution provision in a 401(k) plan gives the plan an exemption to the actual deferral percentage (ADP) test that might otherwise limit the salary deferral contribution amounts of owners and highly compensated employees (collectively referred to as “HCEs”). In a safe harbor 401(k)...
By : Scott M. Cloud, MBA, CPC During the past six months there’s been a flurry of retirement plan regulatory/legislative changes between the SECURE Act and CARES Act (and subsequent coronavirus-related relief), and on Thursday, May 21st the DOL announced the final rules enabling required plan notifications, disclosures, and other materials to be...
By: Scott M. Cloud, MBA, CPC Administered by the Department of Labor (DOL), the Employee Retirement Income Security Act (ERISA) provides the federal statutory framework for fiduciary compliance standards in 401(k) plans, profit sharing plans, money purchase plans, defined benefit plans, and some 403(b) plans. Three sections of ERISA that receive...
Understanding the CARES ActUpcoming Compliance Deadlines for Calendar-Year PlansAsk the Experts Understanding the CARES Act On Friday, March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), a massive relief bill for those suffering as a result of the Coronavirus pandemic, was signed into law. Besides the generalized...
On Friday afternoon the President signed into law an unprecedented $2 trillion stimulus bill to rescue the U.S. economy, including retirement plan provisions which will bring relief to many participants and employers alike. It is called the Coronavirus Aid, Relief, and Economic Security (CARES) Act. As for the retirement-based provisions, it...
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. ...
