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.
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Beneficiaries are allowed to disclaim inherited IRA assets. But beneficiaries cannot direct where the assets will go.
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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.
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Health savings accounts (HSAs) continue to grow in popularity. And as they become more popular, you should expect an increase in HSA-related questions from clients. This article provides answers to some of the more common HSA questions that your clients may have.
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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.
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Here are answers to some of the common Coverdell ESA questions we receive from financial organizations.
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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.
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A sole proprietor whose aim is maximizing her contribution may find a SEP plan more appealing than a SIMPLE IRA. But as her business grows and she starts hiring employees, she might decide to switch to a SIMPLE IRA, which allows for employee deferrals instead of solely relying on employer contributions.
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Although Roth IRAs and designated Roth accounts have a few similarities, such as the name “Roth” and the objective of generating tax-free earnings, there are also some significant differences between the two accounts.
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Withholding elections for nonperiodic distributions are now made on the new IRS Form W-4R.
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Given the complexity involved in operating a retirement plan, it’s not surprising that from time to time there may be miscues, such as operational, document, or even eligibility failures. Some can be resolved without the direct involvement of the IRS, under the agency’s Self-Correction Program within the broader Employee Plans Compliance Resolution System. Other failures must—or, if an employer chooses, can—be corrected under the IRS Voluntary Correction Program (VCP).
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Although there are a few similarities between IRAs and HSAs, the beneficiary options are different.
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When an employer establishes a 401(k) plan, the IRS expects the plan to have longevity. If the employer terminates the 401(k) plan, the employer should have a good reason for doing so.
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Here’s a refresher on how to know the reporting differences between rollovers, postponed/late contributions, and repayments.
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An in-plan Roth rollover (IRR) is a rollover of non-Roth assets to a designated Roth account under the plan. Learn more about the plan and notification requirements for an employer plan to offer IRRs.
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An individual can contribute to an employer-sponsored retirement plan and to a Traditional IRA. But claiming a federal income tax deduction for a Traditional IRA contribution may be a different matter.
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Qualified plan loan offsets (QPLOs) give clients more time to repay most outstanding plan loans.
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A conversion is a taxable, reportable movement of assets from either a Traditional IRA (including Traditional IRAs that hold SEP contributions) or a SIMPLE IRA (after a two-year period) to a Roth IRA.
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