Learn how the Qualified Separate Line of Business (QSLOB) rules can assist a plan in meeting minimum coverage requirements. Defined contribution plans must cover a minimum number of employees to remain qualified for favorable IRS tax treatment, as outlined in Treasury Regulation Section 1.410(b)-1. Typically, all employees of a single employer are considered when applying these requirements. However, by adhering to the QSLOB rules in Treas. Reg. §1.414(r)-8, employers with QSLOBs can apply the minimum coverage criteria separately for each QSLOB, potentially simplifying compliance with IRS testing.
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Allowing independent contractors to participate in a company's 401(k) plan can turn it into a Multiple Employer Plan (MEP), which involves specific regulations. Ensure compliance with IRS rules and seek ERISA counsel to avoid potential issues.
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Sponsors of 401(k) or 403(b) safe harbor plans can amend the plan mid-year to reduce or suspend safe harbor contributions if facing economic loss or if the initial notice stated this possibility. Proper supplemental notice and procedural requirements must be followed.
The post CASE OF THE WEEK – Reducing or Suspending 401(k) Safe Harbor Contributions Mid-Year appeared first on TRA.
Learn about the potential of health savings accounts (HSAs) as a long-term savings vehicle for future healthcare expenses in retirement. Discover key data from Bank of America’s Q3 2024 Participant Pulse, including investment trends among different demographics and the benefits of HSAs' triple tax-free status. Promote HSAs effectively to your employees and support their retirement planning.
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Discover whether a retirement plan can charge fees to terminated participants while exempting active participants. This article explores the critical role of plan documents, compliance with Department of Labor (DOL) and IRS guidelines, and the importance of prudent, reasonable, and nondiscriminatory expense allocation methods. Ensure your plan's fee structure aligns with regulatory standards and fiduciary responsibilities.
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Discover the key ingredients for crafting a successful Investment Policy Statement (IPS) for your retirement plan. Learn about defining plan objectives, roles and responsibilities, eligible investments, performance monitoring, qualified default investment alternatives, and the importance of periodic reviews and amendments. Ensure your IPS aligns with fiduciary best practices and supports diverse investment options for your employees.
The post A Recipe for a Hearty Investment Policy Statement appeared first on TRA.
Discover how participants must report the fair market value of a life insurance policy distributed by a 401(k) plan as income, and how IRS safe harbor valuation methods in Rev. Proc. 2005-25 offer plan sponsors assurance against IRS challenges.
The post CASE OF THE WEEK – Valuing Life Insurance appeared first on TRA.
Explore new financial wellness focus areas for 2025, including enhanced preretiree education and planning programs. Learn about personalized retirement income projections, Social Security and Medicare education, budgeting, tax planning, and additional savings opportunities starting at age 50+.
A business owner’s former employee embezzled funds. Can the 401(k) plan balance of the terminated employee be used to offset the losses? Generally, no, due to ERISA's anti-alienation provisions, though there are a few exceptions such as QDROs, IRS tax levies, federal court garnishments, and liabilities linked to the participant’s misconduct with the plan.
The post CASE OF THE WEEK – Embezzlement – Are Plan Assets Safe appeared first on TRA.
Discover insights into Generation Beta's future from Prudential's white paper. Learn about their anticipated technological integration, evolving family structures, extended life spans, and the redefined concepts of work and retirement. Explore how plan sponsors can help this generation achieve positive retirement outcomes amidst rapid changes.
The post New White Paper Explores Life, Longevity and Retirement for Future Workers appeared first on TRA.
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