Articles — Ascensus

To assist Ascensus clients during the busy contribution and tax season, the 800 Consulting telephone lines will be open for extended hours.

IRA, Employer Plan, HSA, ESAAscensusMarch 21, 2024Compliance & Operations, IRA, Coverdell ESA, HSA, SEP Plan, SIMPLE IRA Plan, Retirement Plan, Qualified Retirement Plan, Business Insights

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

The Sarbanes-Oxley Blackout Notice and Its Requirements

What is a Sarbanes-Oxley blackout notice? What is a blackout period? What information must be included in the blackout notice? What are the potential consequences of not providing a timely blackout notice?

expert, Employer PlanAscensusJanuary 18, 2024Compliance & Operations, Distribution, Qualified Retirement Plan, Beneficiary

IRS Issues SECURE 2.0 Guidance

On December 20, 2023, the IRS released Notice 2024-2, Miscellaneous Changes Under the SECURE 2.0 Act of 2022. The so-called “Grab Bag” Notice provides guidance to multiple provisions of the SECURE 2.0 Act of 2022.

Employer Plan, IRA, News BriefAscensusDecember 21, 2023IRA, SEP Plan, SIMPLE IRA Plan, IRS, Retirement Plan, Qualified Retirement Plan

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

IRS Releases 2024 Cost-of-Living Adjusted Retirement Savings Limitations

The IRS has issued Notice 2023-75, which contains the 2024 cost-of-living increases for qualified retirement plan dollar limitations on benefits and contributions under the Internal Revenue Code (IRC).

Employer Plan, IRA, News BriefAscensusNovember 16, 2023Compliance & Operations, Traditional IRA, Roth IRA, Retirement Plan, Qualified Retirement Plan, SIMPLE IRA Plan, SEP Plan, Contributions, IRS, IRA

DOL Proposes Expanded Definition of Investment Advice Fiduciary

The Department of Labor (DOL) recently released a regulatory package that includes a proposed amendment to the regulations that define what constitutes an investment advice fiduciary under the Employee Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code (the “Retirement Security Rule”).

Employer Plan, IRAAscensusNovember 16, 2023Compliance & Operations, Business Insights, Washington Pulse, Regulations, Retirement Plan, Qualified Retirement Plan, IRA, Traditional IRA, Roth IRA, DOL

Top-Heavy Testing

The top-heavy test in Internal Revenue Code Section (IRC Sec.) 416 compares the benefits that have accrued under the plan for key employees to those of nonkey employees.

expert, Employer PlanAscensusNovember 16, 2023cp, Compliance & Operations, Regulations, Qualified Retirement Plan, Retirement Plan, Business Insights

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

Deposit Deadlines for Elective Deferrals

If deferrals are not deposited into participants’ accounts by the Department of Labor’s (DOL’s) deposit deadline, the deposits are considered late. This failure may result in a prohibited transaction.

expert, Employer PlanAscensusSeptember 21, 2023Qualified Retirement Plan, Retirement Plan, DOL, Regulations

The Importance of Establishing Sound Plan Policies and Procedures

You’ve established your retirement plan. Contributions are coming in and distributions are going out. Everything seems to be running smoothly . . . until your recordkeeper sends an alert indicating that you may not be operating your plan according to all the terms of the document.

Employer PlanAscensusAugust 17, 2023Retirement Plan, Qualified Retirement Plan, Plan Establishment, Compliance & Operations

How a Qualified Plan’s Effective Date Contributes to a Plan’s Success

With the passing of key retirement legislation in the last few years, there are many incentives for employers to adopt a qualified retirement plan that can provide meaningful benefits to employees. While there are numerous factors to consider during the establishment process, employers should consider certain effective dates that will significantly affect the success of their plan’s initial year of operation.

expert, Employer PlanAscensusAugust 17, 2023Plan Establishment, Qualified Retirement Plan, Eligibility, Regulations, Retirement Plan