403(b) Plan — Articles

Post-Severance Compensation vs. Severance Pay

A widely discussed but frequently misunderstood topic that is critical to a qualified plan’s operations and compliance is post-severance compensation.

Employer PlanAscensusJune 20, 2024Compliance & Operations, Business Insights, Retirement Plan, Qualified Retirement Plan, 401(k) Plan, 403(b) Plan

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.

expert, Employer PlanAscensusJune 20, 2024Qualified Retirement Plan, Compliance and Operations, Business Insights, 401(k) Plan, 403(b) Plan, Regulations

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.

Employer Plan, expertAscensusApril 18, 2024Qualified Retirement Plan, Retirement Plan, 401(k) Plan, 403(b) Plan, Regulations, Contributions, Plan Establishment

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.

expert, Employer PlanAscensusMarch 21, 2024Compliance & Operations, Q&A, Qualified Retirement Plan, Retirement Plan, Business Insights, 401(k) Plan, 403(b) Plan, Profit Sharing Plan

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.

Employer PlanAscensusMarch 21, 2024Compliance & Operations, Retirement Spotlight, Retirement Plan, Qualified Retirement Plan, Business Insights, 401(k) Plan, 403(b) Plan, Profit Sharing Plan, Regulations

SECURE 2.0 Expands Roth Options for Employer-Sponsored Retirement Plans

The SECURE 2.0 Act contains provisions that allow individuals to place more of their assets into Roth accounts. Implementing these provisions requires significant retooling for employers, third-party providers, and financial organizations.

Employer PlanAscensusMarch 21, 2024Retirement Plan, Qualified Retirement Plan, Roth IRA, Business Insights, 401(k) Plan, 403(b) Plan

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.

Employer Plan, IRAAscensusFebruary 15, 2024Compliance & Operations, Washington Pulse, IRA, SEP Plan, SIMPLE IRA Plan, Roth IRA, 401(k) Plan, 403(b) Plan, Form 1099-R, Form 5498, Regulations, Business Insights

Additional Employer Matching Contributions in a Safe Harbor Plan

An employer can design a plan and avoid worrying about ADP/ACP testing by offering an ADP/ACP safe harbor 401(k) plan.

expert, Employer PlanAscensusFebruary 15, 2024Qualified Retirement Plan, 401(k) Plan, 403(b) Plan, Retirement Plan, Q&A

Common Compliance Testing Questions

If you’re new to qualified retirement plans, or simply need a refresher on these common terms in the retirement plan industry, we’ve got you covered.

Employer PlanAscensusDecember 21, 2023Compliance & Operations, Qualified Retirement Plan, 401(k) Plan, 403(b) Plan, Regulations, Reporting, Profit Sharing Plan

IRS Issues Proposed Long-Term, Part-Time Regulations

The Internal Revenue Service (IRS) has released a proposed regulation reflecting statutory changes related to long-term, part-time (LTPT) employees made by the SECURE Act of 2019 (SECURE Act) and the SECURE 2.0 Act of 2022 (SECURE 2.0).

Employer PlanAscensusDecember 21, 2023Qualified Retirement Plan, SIMPLE IRA Plan, Compliance & Operations, Washington Pulse, 401(k) Plan, 403(b) Plan, Profit Sharing Plan, Regulations, Eligibility, IRS

Effects of Military Service on a Retirement Plan

Eligible employees must be given the opportunity to contribute deferrals or after-tax contributions, including catch up, for the period of military service.

expert, Employer PlanAscensusDecember 21, 2023Compliance & Operations, Retirement Plan, Qualified Retirement Plan, Q&A, 401(k) Plan, 403(b) Plan, Distribution

Safe Harbor 401(k) Basics

A safe harbor 401(k) is a specific 401(k) retirement plan design that allows sponsoring employers to avoid certain compliance testing. Many aspects of 401(k) plans are subject to compliance testing to ensure that higher paid employees and owners don’t benefit from the plan disproportionately in comparison with the rank-and-file employees. Put another way, the plan’s provisions must not unduly discriminate in favor of owners and the highly paid.

Employer Plan, expertAscensusOctober 19, 2023Compliance & Operations, Business Insights, Regulations, Qualified Retirement Plan, Retirement Plan, 403(b) Plan, 401(k) Plan, Plan Establishment

Demystifying Forfeiture and Suspense Accounts

Certain events in the life of a retirement plan may lead to some assets being temporarily allocated to special unallocated accounts, rather than being credited to a specific plan participant. This is the case with both forfeiture accounts and suspense accounts, which—perhaps not surprisingly—are sometimes confused with one another.

Employer Plan, expertAscensusJuly 20, 2023Retirement Plan, Qualified Retirement Plan, 401(k) Plan, 403(b) Plan, Compliance & Operations, Business Insights, Reporting, Regulations

IRS Provides Additional RMD Transition Relief Under SECURE/SECURE 2.0

The IRS on July 14, 2023, issued Notice 2023-54 to provide transition relief for required minimum distributions (RMDs) in connection with the change in required beginning date (RBD) to age 73 under SECURE 2.0, and guidance for certain specified RMDs for 2023.

IRA, Employer Plan, News BriefAscensusJuly 20, 2023Regulations, Required Minimum Distributions, Beneficiary, Compliance & Operations, IRA, IRS, Retirement Plan, Qualified Retirement Plan, 401(k) Plan, 403(b) Plan, Reporting

IRS Issues Interim Guidance on Plan Corrections Under SECURE 2.0 Act

The SECURE 2.0 Act of 2022 (SECURE 2.0) provisions affecting the Employee Plans Compliance Resolution System (EPCRS) support the IRS trend toward shifting certain types of retirement account corrections to the Self Correction Program (SCP).

Employer Plan, IRAAscensusJuly 20, 2023Regulations, Retirement Spotlight, 401(k) Plan, 403(b) Plan, Qualified Retirement Plan, Compliance & Operations, SIMPLE IRA Plan, SEP Plan, Profit Sharing Plan, Excess Contribution

How SECURE 2.0 Affects Family Attribution Rules

SECURE 2.0 is the hot topic in the retirement industry right now and has been hailed as the most important retirement enhancement legislation in more than a decade. One of the changes effective for plan years beginning after December 31, 2023, reforms the family attribution rules by redefining “employer” for qualified retirement plan (QRP) purposes.

Employer Plan, expertAscensusJune 15, 2023Compliance & Operations, Q&A, Qualified Retirement Plan, 401(k) Plan, 403(b) Plan

Can Interns and Other Employment Classes be Excluded From Retirement Plan Participation, Including Eligibility to Receive Safe Harbor Contributions?

Not everyone who participates in the workforce serves an employer on a permanent full-time basis. Most qualified retirement plan documents allow an employer to tailor a plan to meet its specific needs, including defining the eligibility requirements for employees to enter and participate in the plan.

Employer PlanAscensusMay 18, 2023Compliance & Operations, Business Insights, Qualified Retirement Plan, 401(k) Plan, 403(b) Plan, Retirement Plan

Agencies Update Form 5500

Plan sponsors have watched for updates to the process of filing Form 5500 over the past three years as the Department of Labor’s (DOL’s) Employee Benefits Security Administration, the IRS, and the Pension Benefit Guaranty Corporation (“the Agencies”) released changes to the form to comply with provisions in the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE 1.0).

Employer PlanAscensusApril 20, 2023Qualified Retirement Plan, 401(k) Plan, 403(b) Plan, Profit Sharing Plan, Reporting, Business Insights, DOL, IRS