Posts tagged 401(k) Plan
When and How do Retirement Savings and Spousal Consent Intersect?

A marriage begins with the intention that the relationship will endure—the reality of divorce and separation statistics notwithstanding—and that a couple’s retirement years will be spent together. Consequently, it’s easy to understand why laws give special consideration to spouses when it comes to their entitlement to financial resources intended to provide retirement security.

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Choosing the Right Retirement Plan for Your Small Business: SEP, SIMPLE, or Individual (k)?

If your client owns a small business, they’re already juggling a lot. Between managing clients, balancing budgets, and keeping operations moving, retirement planning often falls to the bottom of the list. Yet choosing the right retirement plan can be a game changer, not just for the business owner, but for their employees as well.

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Help Retirees Make the Most of Their Next Chapter: Learn How to Roll Over QRP Assets to an IRA with Confidence

Retirement marks a major life transition—and with it comes a series of financial decisions that can shape your clients’ future. One of the most important choices individuals will face is what to do with money in a qualified retirement plan (QRP), such as a 401(k) or 403(b) plan. For many retirees, rolling those assets into an individual retirement account (IRA) offers flexibility, control, and long-term benefits.

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Prevailing Wage Contributions in Defined Contribution Plans

During the Great Depression, a common practice among contractors bidding for federal contracts was reducing workers’ wages; and thereby, their labor costs, to win bids. While prevailing wage laws had existed on a state and local government level for more than three decades at this time, the first and most significant federal law–protecting the workers’ and their families’ welfare–was the Davis-Bacon Act of 1931.

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IRC Sec. 402(g) Excesses Explained

Plan administrators and plan participants must limit the elective deferrals that are contributed to their qualified retirement plans each calendar year to the Internal Revenue Code Section (IRC Sec.) 402(g) limit. The limit includes elective deferrals (including both pretax and designated Roth deferrals) that participants can defer into their qualified retirement plans (in aggregate) for each taxable year.

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A Brush Up on EPCRS’s Self-Correction Program: Reviewing updates made to EPCRS following the passage of SECURE 2.0

Plan sponsors may generally correct eligible inadvertent failures under the EPCR’s Self-Correction Program. Exceptions to this rule include failures in which the plan or plan sponsor is under examination by the IRS or for failures that have been identified by the plan or plan sponsor but have not been corrected within a reasonable period of time after identification.

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Understanding the New Eligibility Requirements for Long-Term, Part-Time Employees

Over the past five years Congress has passed extensive legislation to encourage more people to save for their retirement. One obstacle many people face in this endeavor is not meeting eligibility requirements to participate in an employer-sponsored 401(k) plan. This hurdle is now easier to overcome for people who have worked on a part-time basis for their long-term employer.

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SECURE 2.0 Provides New Financial Incentive Option for Encouraging Employee Participation

Today, many employers offer long-term incentives, such as employer matching contributions, to boost participation in their retirement plans. But, as of plan years beginning after December 29, 2022, a small immediate financial incentive can also be offered to entice those not deferring in their employer’s 401(k) or 403(b) plan to start contributing to the plan. Inevitably, this has generated questions—the most popular of which we will answer here.

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IRS Releases Final Guidance on Penalty Exceptions for Failure to File Correct Information Returns or Furnish Payee Statements

The Internal Revenue Service (IRS) has released final regulations that provide de minimis error safe harbor exceptions to penalties for failure to file correct information returns or furnish correct payee statements.

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IRS Releases Guidance on SECURE 2.0 Provisions

The Internal Revenue Service (IRS) has released Notice 2024-02, which provides guidance in a question and answer format regarding several provisions of the SECURE 2.0 Act of 2022 (SECURE 2.0). This article summarizes the guidance contained in Notice 2024-02.

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