October 4, 2023

Required Minimum Distributions

October 4, 2023

As we approach the end of the calendar year, it is important to be reminded about one frequently overlooked retirement plan requirement. Upon attainment of age 73, certain participants of a tax-qualified retirement plan may be required by federal tax law to withdraw a minimum amount from such plan each year. These mandatory distributions are…

September 5, 2023

Safe Harbor 401(k) Establishment Deadline

September 5, 2023

Elective deferrals and associated matching contributions made to a 401(k) plan must satisfy certain non-discrimination rules known as the “actual deferral percentage” (“ADP”) and the “actual contribution percentage” (“ACP”) tests. The ADP and ACP tests restrict the amount of elective deferral and matching contributions that highly compensated employees (“HCEs”) may receive. However, the Internal Revenue…

August 7, 2023

Employing the Proper Definition of Compensation

August 7, 2023

The U.S. Department of Labor (“DOL”) and the Internal Revenue Service (“IRS”) routinely report common operational failures that such agencies detect in the context of retirement plan audits and investigations.  One of the operational failures that is always at or near the top of that list concerns plan sponsors failing to employ the correct definition…