Articles — Ascensus

Employee Service Crediting: a Key Part of Plan Administration

For qualified retirement plan purposes, is crediting employee service important? Are there certain methods for crediting service and, if so, which one should be used? Can service with an employer ever be excluded?

Employer Plan, expertAscensusFebruary 21, 2019Compliance & Operations, Qualified Retirement Plan, Eligibility, Q&A

How Transfers and Rollovers Differ

How do transfers and rollovers differ? How are they reported to the IRS? What are the restrictions?

Failure to Remove an RMD from a 401(k) Plan Can Be Corrected

When must required minimum distributions (RMDs) from a 401(k) plan start and what is the annual deadline? What happens if RMDs are not timely distributed? Are there any correction options?

What to Know About ESA Transfers and Rollovers

How can Coverdell ESA assets be moved? Can ESA assets be moved after the child turns age 18? Who is a qualified family member for ESA purposes?

expert, ESAAscensusDecember 20, 2018Compliance & Operations, Coverdell ESA, Q&A, Rollover, Transfer

Defining Compensation for 401(k) Plan Contributions and Testing

How is compensation defined for 401(k) plan purposes? How does the definition affect compliance testing? What time period is used for defining compensation?

expert, Employer PlanAscensusDecember 20, 2018Compliance & Operations, Retirement Plan, 401(k) Plan, Contribution, Q&A, Regulations

What Is a Loan Offset and How Do Recent Regulatory Changes Apply?

What does it mean when an outstanding loan amount is offset? What are the tax consequences for the plan participant? What is the timeframe for rolling over a loan offset amount and how should it be reported?

Can an HSA Have Authorized Users?

Can HSA debit cards be issued to individuals other than the HSA owner? Are there issues that financial organizations should be aware of when allowing authorized users?

expert, HSAAscensusNovember 15, 2018HSA, IRS, Distribution

Moving Money to an HSA with a Qualified HSA Funding Distribution

What is a qualified HSA funding distribution and how much can be distributed? Can a qualified HSA funding distribution help satisfy an RMD? What is a testing period?

What Is the Top-Heavy Test and What Should Plans Do if Top Heavy?

What is the top heavy test and who is a key employee? What if a plan is deemed top-heavy? What are top-heavy minimum contributions?

What Does It Mean to Have a Nonqualified ESA Distribution?

What is the difference between a qualified and a nonqualified distribution from a Coverdell ESA? Does a penalty tax apply to a nonqualified distribution?

expert, ESAAscensusSeptember 20, 2018Compliance & Operations, Coverdell ESA, Distribution, Education, Q&A

What Can Be Done to Help Pass ADP/ACP Testing?

When conducting ADP and ACP testing for a plan that does not use a safe harbor 401(k) design, what techniques can be used to structure a test to enhance its chances of passing? How should a failed ADP or ACP test be corrected?

expert, Employer PlanAscensusSeptember 20, 2018Compliance & Operations, 401(k) Plan, IRS, Contribution, Distribution

Disclaiming IRA and HSA Assets

What can be done when an IRA owner’s spouse and children are the primary beneficiaries of the IRA but the children want all of the IRA assets to go to the spouse? With an HSA, the assets are deemed distributed to a nonspouse beneficiary upon the HSA owner’s death, but can the nonspouse beneficiary still disclaim the assets he would receive as a beneficiary?

expert, IRA, HSAAscensusAugust 16, 2018Traditional IRA, Roth IRA, HSA, Beneficiary, Compliance & Operations, Q&A

403(b) Pre-Approved Plans

What is a 403(b) pre-approved plan and what is the benefit of having one? Are existing 403(b) plans required to be restated as a pre-approved plan? Is there a deadline to restate an existing plan onto a pre-approved plan?

expert, Employer PlanAscensusAugust 16, 2018403(b) Plan, Compliance & Operations, IRS, Plan Establishment, Q&A

Safe Harbor 401(k) Plan Mid-Year Amendments

Can the Safe Harbor 401(k) plan be amended mid-year to increase eligibility to a one year of service with 1,000 hours? Can an employer amend a Safe Harbor 401(k) plan mid-year to increase the safe harbor nonelective contribution?

HSA Nonspouse Beneficiary, HSA Access

What happens to an HSA when the owner passes away and the beneficiary is a not the spouse? Can someone besides an HSA owner have access to the HSA?

expert, HSAAscensusJuly 19, 2018HSA, Compliance & Operations, Distribution, Beneficiary, Reporting, Q&A

Retirement Plan Hardship Distribution Changes

What changes are forthcoming regarding qualified retirement plan hardship distribution rules? When are these changes effective? Is the plan document required to be amended for these changes?

IRA Qualified Charitable Distributions

What is a qualified charitable distribution (QCD)? Are there limits to how many QCDs an IRA owner may make in a year? How are QCDs treated when the IRA owner has nondeductible contributions in the IRA?

expert, IRAAscensusJune 14, 2018Traditional IRA, Roth IRA, Compliance & Operations, Distribution, Reporting, Q&A

IRA Document Concerns Upon Mergers and Acquisitions

Are we required to notify IRA clients who came to us from an acquisition that we are the new trustee? What should I do if the IRA documents are missing? Do we need to do anything regarding the SEP plans that were established with the previous organization if we do not offer SEP Plan documents?

expert, IRAAscensusMay 17, 2018Compliance & Operations, Documents & Amendments, SEP Plan, SIMPLE IRA Plan, Q&A