Monthly Archives: August 2009

Vesting – When is a Year a Year?

(Posted at August 27, 2009) We are coming out of the recession and our economy is showing increased signs of strength every day. However, job losses, while subsiding a bit, are continuing and the employment situation will be in a … Continue reading

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Choosing a Retirement Plan: Money Purchase Plan

Highlights: Money purchase plans have required contributions. That is, you, as the employer, are required to make a contribution, on behalf of the plan participants, to the plan each year. With a money purchase plan, the plan states the contribution … Continue reading

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Choosing a Retirement Plan: Profit-Sharing Plan

Highlights: Guess what. You don’t need profits in order to make contributions to a profit-sharing plan. Of course, having a profit would probably make it easier to actually contribute something. Contributions to a profit-sharing plan are discretionary. There is no … Continue reading

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Has your company’s layoff caused a partial termination of your retirement plan?

Maybe you have been forced to lay off employees because of a price collapse in your industry or to brace for economic challenges ahead. Maybe you have been forced to cease operations at one of your business locations. Or maybe … Continue reading

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Compensation considerations for qualified plan sponsors

An often overlooked aspect of qualified plan administration is “compensation.” At last count, it was conceivable that a qualified plan sponsor might need to deal with as many as eight different definitions of compensation in order to keep a plan … Continue reading

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Can I contribute to my 401(k) after taking withdrawals?

Most plans that allow “in-service” withdrawals for participants age 59½ and older do allow continued contributions. But consider other options too. If you’ve been told that you can withdraw from your 401(k) plan without penalty while still employed, then it … Continue reading

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Resolving IRS (and DOL) Penalties for Late Form 5500 Filing

Recently, a number of employers have received letters from the IRS assessing penalties ($25 per day) for the late filing of Form 5500 for the employer’s plan(s). The letters generate two important questions for the employer: 1- May the employer … Continue reading

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Five Plan Design Considerations

1. If your plan is top heavy (most likely requires a 3% contribution to non key participants if the key employees are benefitting from the plan), you should adopt the Safe Harbor NEC plan design (3% contribution to all eligible … Continue reading

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Plan Termination Primer – Considering a Plan Termination

This section is strictly for review purposes. It is not to be used as a legal or consultative opinion as to the decisions you make regarding plan design, service providers, or the termination process. Before terminating your plan, please make … Continue reading

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Timing of Amendments to 401(k) Plans

We often receive questions whether a certain plan feature can be added or removed from a plan at any time during the plan year. This article will provide general guidance as to the timing rule for plan amendments and review … Continue reading

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