Name: Paul McEwan, CPA, MT, AIFA(R), Principal, Director of Benefit Plan Administration Services
Posts by Paul McEwan, CPA, MT, AIFA(R), Principal, Director of Benefit Plan Administration Services:
“If it’s not broken, don’t fix it.” A lot of people adhere to this philosophy, but in some cases, a review of how something works is not only helpful, it is required. If a business’s retirement plan seems to be working fine, and there doesn’t appear to be anything out of place, many employers believe there is no reason to review the provisions of the plan. This may be the case for a plan that was recently established, but it is always a good idea to review provisions every few years to ensure the plan is still meeting the goals of both the employer and its’ employees. Read the rest of this entry “
No one likes to hear from the IRS. But for the roughly 4,000 plan sponsors who have recently received erroneous notices, it’s extremely frustrating. Chances are if you have received a notice telling you that the IRS is assessing a penalty due to your “filing a late or incomplete” Form 5500 or 8955-SSA, it may very well be a mistake. Read the rest of this entry “
Let’s face it. You like to be prepared when it comes to your finances. So do participants of your benefit plans. That need for preparation is what has driven the recent changes in regards to fee disclosure. As a plan sponsor, you need to comply with these new requirements. Are you sure you’re keeping up with your role in the process? Read the rest of this entry “
In the last issue of Illuminations, you read about some initial consequences you may face if you find that your 401(k) plan is out of compliance with an IRS or DOL rule. In this week’s issue, check out the second part of the article that explains the statute of limitations and how you can work to rectify any issues you may have with your business’s retirement plan. To refresh your memory, you can read the first part of the article here. Read the rest of this entry “
With all of the rules in the business world, it sometimes can be difficult to know and understand all of the rules we need to follow – there are a lot of them. So what happens if you find yourself in an unintended situation where your business’s 401(k) plan is out of compliance? Simply put, a plan out of compliance with Internal Revenue Service (IRS) or Department of Labor (DOL) rules is subject to disqualification. But what does that mean? It is very important that you fix any compliance issues when they are identified – whether they are document-related issues, government reporting issues (5500) or plan operational issues. Read the rest of this entry “
Does your 401k plan have a calendar year end? If so you have until December 1, 2012, to send notice requirements to plan participants or the operation or qualification of your plan could be impacted. Use this checklist of notices to get started: Read the rest of this entry “
As we begin the last quarter of the year, if your company sponsors a calendar year 401k plan, don’t forget about participant notice requirements. They must be furnished by December 1, 2012 and may impact the operation or qualification of your plan. Here is a checklist that may be helpful, but check with us if you are not certain which of these requirements apply to your plan. Read the rest of this entry “
Why They’re Coming and What To Do with Them
Not sure why you got a check in the mail from your insurance company? No, they’re not dropping your coverage. They’re crediting you back for what they overcharged your participants in 2011. Why? Because of health care reform.
Since the Supreme Court decided on the constitutionality of the Affordable Care Act (ACA), we told you about how it might mean additional taxes and regulations for your business. But, the ACA isn’t all bad news for small business owners. In fact, it could get you a check from your insurance company! Read the rest of this entry “
Benchmarking may result in potential savings
Could you use an extra $26,000 a year? A plumbing company realized that savings after discovering it was overpaying recordkeeping and investment fees in its retirement plan.
By benchmarking the plan, this company saw how the fees compared to plans of a similar size across the country. This provided the plan sponsor with solid data to discuss fees with current providers.
While there are plans out there where reasonable fees are being paid, that’s not the case in every situation. From a law firm that saved $46,000 in investment fees to an administrative services firm that reduced its annual recordkeeping fees by $50,000, some plan sponsors have found that their plan fees are not in-line with similar plans. Read the rest of this entry “
If your company sponsors a 401k plan, a new ERISA regulation could mean extra paperwork… and potentially extra liability. Read the rest of this entry “