By: Scott Cloud, MBA, CPC and Kyle Brown, CEBS Cash balance plans are a type of defined benefit retirement savings plan that enables business owners to make significant tax-deductible contributions each year and to accumulate significant retirement savings on a tax-deferred basis. While SEPs and 401(k)/profit sharing plans – as defined...
The IRS has announced changes to retirement plan limits for 2021 Each year the Internal Revenue Service announces the cost-of-living adjustments applicable for all types of qualified retirement plans and IRAs. The various annual contribution limitations and other important indexes which govern all plans either remain unchanged...
Electronic Delivery Could Save BillionsUpcoming Compliance Deadlines for Calendar-Year PlansIRS Issues Additional Pandemic Relief Electronic Delivery Could Save Billions On May 21, 2020, the U.S. Department of Labor and the Employee Benefits Security Administration (EBSA) announced the publication of a final rule that will allow employers to...
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...
