DOL Regulations, Fiduciary

Revenue Sharing Defined

There is much misunderstanding about what revenue sharing is and what it provides. As an overview, it reflects the acknowledgement by the fund company that a portion of its normal investment fee will no longer be incurred since a third party recordkeeper will be providing the services being shed.  For example, if a fund originating from ABC Fund Company will be marketed and serviced by … Continue reading Revenue Sharing Defined

Financial Wellness

Financial Wellness Insights: Top Financial Goals

The majority of employees are concerned with retirement planning. Saving for retirement is the most commonly cited financial goal among employees, coming ahead of many short-term goals, including eliminating debt and creating an emergency fund.¹ In an analysis of data collected from 1,081 employees earlier this year, Retiremap found that saving for retirement is a goal for the majority, 56 percent, of employees surveyed. The … Continue reading Financial Wellness Insights: Top Financial Goals

Retirement Plans, The Labor Management Relations Act of 1947, Taft Hartley Act

Fiduciary Liability Insurance

Plan sponsors are often concerned with the prudence and process of obtaining insurance covering ERISA retirement plan fiduciaries. While fiduciary insurance is an important aspect in mitigating the financial impact of fiduciary litigation, there are a number of additional, important activities that are prudent for fiduciaries to embrace. ERISA fiduciaries are well advised to follow a comprehensive strategy to optimize fiduciary risk mitigation. Other important … Continue reading Fiduciary Liability Insurance

Are You Monitoring Your Forfeiture Account?

Qualified plans have a requirement to not carry forward any unallocated assets from year-to-year. Unfortunately, this rule is frequently neglected by plan sponsors, much to their chagrin when the failure is discovered on audit by the IRS or Department of Labor (DOL). Thus, it is important to remember that forfeitures must be allocated on an annual basis. The process is typically determined per the provisions … Continue reading Are You Monitoring Your Forfeiture Account?

IRS

Pass or Fail? Corrective Actions to Remedy Your Test Results

Each year you receive a “pass” or “fail” from your service provider regarding required non-discrimination testing (the Actual Deferral Percentage test and the Actual Contribution Percentage test). The ADP/ACP tests govern the amounts of deferrals and/or matching contributions that highly compensated employees (HCEs) are allowed to make or receive in relation to those of non-highly compensated employees (NHCEs). If you received a “fail” do not panic. … Continue reading Pass or Fail? Corrective Actions to Remedy Your Test Results

IRS, DOL,

IRS Retirement Plan Reporting and Disclosure Requirements

  Administrators or sponsors of retirement plans are generally required by law to report certain information with the IRS, the Department of Labor, and the Pension Benefit Guarantee Corporation, and disclosure to affected parties depending on the plans’ type, size, and circumstances. Below is an excerpt from the IRS’s Retirement Plan Reporting and Disclosure Requirements regarding annual notices that are to be distributed to participants. … Continue reading IRS Retirement Plan Reporting and Disclosure Requirements

2016 Tax Saver’s Credit

2016 Tax Saver’s Credit

Participants may be eligible for a valuable incentive, which could reduce their federal income tax liability, for contributing to your company’s 401(k)or 403(b) plan. If they qualify, they may receive a Tax Saver’s Credit of up to $2,000 ($4,000 for married couples filing jointly) if they made eligible contributions to an employer sponsored retirement savings plan. The deduction is claimed in the form of a … Continue reading 2016 Tax Saver’s Credit