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”).
Read MoreIRA-to-IRA rollovers are subject to the “one-per-12-month” restriction. Meaning that individuals may roll over only one IRA distribution during a 12-month period.
Read MoreThe 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.
Read MoreHalloween is just around the corner, but what may strike fear into the hearts of your staff may be greater than one night of goblins and ghouls. However, moving IRA assets from one IRA to another, or even to a different type of IRA, doesn’t have to be scary.
Read MoreHealth savings accounts (HSAs) will celebrate 20 years in 2024, and these tax-advantaged accounts are more popular than ever. However, there are some common misconceptions about HSAs that prevail, despite their growing popularity.
Read MoreIf it’s been a while since you’ve worked with Coverdell ESAs, here’s a refresher on the rules and your responsibilities when processing ESA distributions.
Read MoreUnlike the requirements for making annual IRA contributions, an individual is never required to have eligible compensation (i.e., earned income) in order to roll over retirement plan assets to an IRA, including a Roth IRA.
Read MoreA 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.
Read MoreCompliance is a critical concern for financial organizations that serve as IRA trustees, custodians, and issuers—and for good reason. IRS penalties for noncompliance and violation of IRA rules can be costly. If the IRS finds compliance issues with your IRA program, it could lead to further scrutiny of your organization.
Read MoreOpening an IRA can be a sound way for your clients to save for retirement. But first, they’ll need to choose what type of IRA—Traditional or Roth—that they want to invest in. Traditional and Roth IRAs share similar rules, but savers use these accounts in different ways.
Read MoreThe deadline for IRA owners to recharacterize or remove their 2022 excess contributions is fast approaching. Typically, the federal tax return extension deadline is October 15. But this year that date falls on a Sunday, so the deadline has been moved to October 16, 2023.
Read MoreIf 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.
Read MoreOn September 13, 2023, the IRS issued Revenue Procedure 2023-31, which addresses requests for undue hardship waiver or administrative exception from the electronic filing requirements for Form 8955-SSA, Annual Registration Statement Identifying Separated Participants With Deferred Vested Benefits, and Form 5500-EZ, Annual Return of A One Participant (Owners/Partners and Their Spouses) Retirement Plan or A Foreign Plan.
Read MoreIf you’re uncertain about the RMD rules, you’re not alone. The rules can be complicated. And you may find that many beneficiaries don’t understand the rules either.
Read MoreEmployers are now preparing for benefits enrollment season, and chances are likely that you’ll soon experience an uptick in potential clients who want to set up new health savings accounts (HSAs) for next year.
Read MoreYou’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.
Read MoreBeneficiaries are allowed to disclaim inherited IRA assets. But beneficiaries cannot direct where the assets will go.
Read MoreWith 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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