Tag: safe harbor

Department of Labor

Do You Send Participant Notices via Email? Should you?

The number of notices and disclosures required to retirement plan participants has increased while methods to access information changed drastically. Many people receive their news and information on electronic devices through apps and social media. What remains the same is the Department of Labor’s (DOL’s) guidance about permissible methods to provide notices electronically. There is a disconnect between how people are accustomed to receiving information … Continue reading Do You Send Participant Notices via Email? Should you?

retirementtimesnewsletter
Plan Design

Considering a Safe Harbor Retirement Plan

It may be advantageous for a plan sponsor to consider adopting a safe harbor design for their retirement plan. Adopting a safe harbor retirement plan design permits an employer to essentially avoid discrimination testing (the testing is deemed met). Remember, this testing limits highly compensated employees’ contributions based upon non-highly compensated employees’ contributions. By making a safe harbor contribution highly compensated employees can defer the … Continue reading Considering a Safe Harbor Retirement Plan

retirementtimesnewsletter
Best Practices, Hardship Distributions
Financial Wellness

Best Practices in Hardship Distributions

These days,many plans are experiencing an uptick in the number of participant requests for hardship distributions. Much of this increased activity may be attributed to our prolonged and tepid economic recovery. As these requests are considered, you want to be sure not to act to the detriment of your plan. Improper handling of a hardship request can ultimately result in plan disqualification. It is important … Continue reading Best Practices in Hardship Distributions

retirementtimesnewsletter
Safe Harbor, Regulations
Financial Wellness

Improper Handling of Hardship Distributions May Result in Significant Problems

These days, many plans are experiencing an uptick in the number of participant requests for hardship distributions. Much of this increased activity may be attributed to our prolonged and tepid economic recovery. As these requests are considered, you want to be sure not to act to the detriment of your plan. Improper handling of hardship requests can ultimately result in plan disqualification. It is important … Continue reading Improper Handling of Hardship Distributions May Result in Significant Problems

retirementtimesnewsletter
Safe Harbor, Regulations
Newsflash

Safe Harbor Regulations Rethought

Traditionally safe harbor contributions have been rather stringent in the sense that once adopted, there seemed to be little leeway allowing suspension or discontinuance. In 2014, the IRS issued new, final regulations of the requirements that need to be met to reduce or suspend a safe harbor contribution during a plan year. The new regulations are effective for plan years beginning on or after January … Continue reading Safe Harbor Regulations Rethought

retirementtimesnewsletter