Articles — Ascensus

Improved Coverage for Long-Term, Part-Time Employees

The SECURE 2.0 Act has shortened the time necessary to allow part-time workers access to 401(k) plans.

Employer PlanAscensusMarch 16, 2023Retirement Plan, Qualified Retirement Plan, 401(k) Plan, 403(b) Plan, Guidance & Legislation

Retroactive First-Year Elective Deferrals for Sole Proprietors

The SECURE 2.0 Act makes it easier for individuals who own the entire interest in an unincorporated trade or business to make elective deferrals to a 401(k) plan for their first plan year.

Employer PlanAscensusMarch 16, 2023Qualified Retirement Plan, Retirement Plan, Business Insights, Compliance & Operations, 401(k) Plan

SECURE 2.0 Brings Opportunities—and Some Challenges

The ink was barely dry on the President’s signature when the calls started coming in about the SECURE 2.0 Act. And as you might expect, the questions weren’t all about what new provisions this legislation contained.

IRA, Employer PlanAscensusFebruary 16, 2023Compliance & Operations, IRA, Roth IRA, SIMPLE IRA Plan, Regulations

SECURE 2.0 Opens Window to Increase Catch-Up Contributions

SECURE 2.0 has now opened a new window, allowing eligible retirement plan participants and IRA owners to make larger catch-up contributions.

Employer PlanAscensusFebruary 16, 2023Compliance & Operations, Retirement Plan, Qualified Retirement Plan, 401(k) Plan, 403(b) Plan, Contribution

The Ins and Outs of In-Plan Roth Rollovers

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.

Employer Plan, expertAscensusFebruary 16, 2023Compliance & Operations, Roth IRA, Retirement Plan, Qualified Retirement Plan, Q&A, 401(k) Plan

SECURE 2.0 is Congress’s Retirement Enhancement Encore

The SECURE Act of 2019 has been followed by a package of several bills, which have collectively been dubbed “SECURE 2.0.” These bills were eventually combined into a single bill, titled The SECURE 2.0 Act of 2022. This bill was included in the Consolidated Appropriations Act of 2023, which was signed into law on December 29, 2022.

IRA, Employer PlanAscensusJanuary 19, 2023Compliance & Operations, Business Insights, SEP Plan, SIMPLE IRA Plan, IRA, Traditional IRA, Roth IRA, Regulations, Qualified Retirement Plan, 401(k) Plan, 403(b) Plan, Guidance & Legislation, Washington Pulse

RMD Age Delayed to 73 in 2023

The SECURE Act of 2019 increased the RMD age from 70½ to 72 years. Now the SECURE 2.0 Act of 2022 is once again delaying the RMD age—from 72 to 73—starting in 2023. And wait, there’s more. In 2033, the RMD age will increase to age 75.

IRA, Employer PlanAscensusJanuary 19, 2023IRA, Retirement Plan, Traditional IRA, SEP Plan, SIMPLE IRA Plan, Reporting

Plan Loans: What Happens When Employees Leave?

Qualified plan loan offsets (QPLOs) give clients more time to repay most outstanding plan loans.

Employer Plan, expertAscensusJanuary 19, 2023Compliance & Operations, Regulations, Qualified Retirement Plan, 401(k) Plan, 403(b) Plan, Profit Sharing Plan, Business Insights, Retirement Plan

Self-Employed Individuals Wrap Up Their Year With Plan Contributions

The holiday season is often called the most wonderful time of the year, but many self-employed individuals also call it the most stressful time of the year.

Employer PlanAscensusDecember 15, 2022Qualified Retirement Plan, Retirement Plan, 401(k) Plan, Compliance & Operations, Business Insights, Plan Establishment

Selecting the Correct IRS Form 1099-R Box 7 Distribution Codes

One of the most difficult aspects of reporting IRA and retirement plan distributions is determining the proper distribution code(s) to enter in Box 7 on IRS Form 1099-R. Here’s a guide to help you choose the correct code.

IRA, Employer PlanAscensusDecember 15, 2022Compliance & Operations, IRA, Traditional IRA, Roth IRA, SIMPLE IRA Plan, SEP Plan, Qualified Retirement Plan, IRS, Distribution, Form 1099-R, Reporting

Related Employer Relationships – The Basics

If a company is part of a related employer relationship, the companies within the relationship are generally treated as one employer for retirement plan purposes.

expert, Employer PlanAscensusDecember 15, 2022Qualified Retirement Plan, Compliance & Operations, Business Insights, Q&A, Retirement Plan

How IRS Notice 2022-53 Affects Beneficiaries

The IRS will not enforce the 50 percent excess accumulation penalty tax for certain beneficiaries.

IRA, Employer PlanAscensusDecember 15, 2022Compliance & Operations, Traditional IRA, Business Insights, Retirement Spotlight, Retirement Plan, Qualified Retirement Plan, Distribution, Required Minimum Distributions

Department of Labor Changes “Employee vs. Contractor” Rule

The Department of Labor’s Wage and Hour Division has once again released guidance on the definition of “employee.”

Employer PlanAscensusDecember 15, 2022Compliance & Operations, Business Insights, Retirement Spotlight, Retirement Plan, Qualified Retirement Plan, DOL, 403(b) Plan, 401(k) Plan, Profit Sharing Plan

2023 Benefit Limit Increases Reflect Inflation in U.S. Economy

The IRS in Notice 2022-55 has issued the inflation-adjusted retirement savings limitations for the coming year. Those who follow these annual announcements will note some significant year-over-year increases from the 2022 amounts.

IRA, Employer PlanAscensusNovember 17, 2022Compliance & Operations, IRA, Traditional IRA, Roth IRA, SIMPLE IRA Plan, SEP Plan, Retirement Plan, Qualified Retirement Plan, 401(k) Plan, 403(b) Plan, IRS, Guidance & Legislation, Contribution, Tax

Spousal Beneficiary Options Just Got (a Bit) More Complicated Under Proposed RMD Regulations

The IRS has always treated IRA (and qualified plan) spouse beneficiaries quite generously. But the new RMD rules may make executing certain options more complicated.

IRA, Employer PlanAscensusNovember 17, 2022IRA, Required Minimum Distributions, Retirement Plan, Qualified Retirement Plan, Roth IRA, 401(k) Plan, 403(b) Plan

Solving the Complexities of Calculating Self-Employed Retirement Plan Contributions

For self-employed individuals, determining the amount that can be contributed to a qualified plan can be daunting. It is important to understand that the compensation that can be used to calculate a retirement plan contribution is likely to be a different amount than what is reported to the Internal Revenue Service (IRS) as net earnings (profit or net business income) for tax purposes.

Employer Plan, IRAAscensusNovember 17, 2022Retirement Plan, Qualified Retirement Plan, Plan Establishment, Contribution, IRA, IRS

Is a Safe Harbor plan right for your client?

The term “safe harbor” is used quite often in the retirement plan world. Generally, if you follow the safe harbor method or guidelines, then you will be “safe” from those requirements.

expert, Employer PlanAscensusNovember 17, 2022Qualified Retirement Plan, Compliance & Operations, Retirement Plan, 401(k) Plan, 403(b) Plan, Q&A

The Ins and Outs of Navigating Retirement

A retirement plan is one of the most influential benefits that an employer may offer. One question that employers may ask is “How can we help participants get the most out of our retirement plan?”

Employer Plan, IRAAscensusOctober 20, 2022Qualified Retirement Plan, Retirement Plan, Required Minimum Distributions, Distribution, Compliance & Operations, Roth IRA, IRA, Traditional IRA