Category Archives: 401(k) Plans

Subscribe to 401(k) Plans RSS Feed

Hey! What’s My Number? How To Improve The Odds You Will Retire In Comfort (Book Review)

Let’s say, for example, you’re concerned about not having enough money saved for retirement. You’re certainly not alone based on the myriad number of polls, surveys, and studies that have been in the news. So where do you start? You might start at Amazon and search under “Retirement Savings”. At this frozen moment in time … Continue Reading

The Dirty Dozen Tax Scams for 2015: Infographic

Every year around this time, the Internal Revenue Service publishes a list of the year’s “Dirty Dozen Tax Scams”. Here they are as an infographic courtesy of  The Accounting School Guide. Source: AccountingSchoolGuide.com You can find more detailed information from the testimony of the IRS’ Timothy P. Camus before the Committee on Finance U.S. Senate … Continue Reading

Illinois Secure Choice Savings Program?

Illinois legislation, the first in the country, recently authorized a new state sponsored retirement savings vehicle called the Secure Choice Savings Program (Secure Choice). The program is aimed at upwards of 2 million Illinois workers who are not currently covered by an employer provided retirement plan. There are at least 16 other states considering legislative … Continue Reading

What Advisors Need to Know About Retirement Plans: Presentation to Illinois CPA Society

I had the opportunity recently to make a presentation on qualified retirement plans to the Illinois CPA Society (ICPAS). Actually, it was using PowerPoint to begin a dialogue with the members of the ICPAS Investment Advisory Services/Personal Financial Planning Forum The ICPAS describes their Forums as being “composed of members with shared interests who interact … Continue Reading

Employee Classification as Part-Time or Full-Time: Not the Same Under the Affordable Care Act and ERISA

Some of the most difficult and contentious provisions of the Affordable Care Act (“ACA”) are the employer mandate and upcoming reporting requirements effective in 2015. “Difficult” because the employer mandate requires applicable large employers, generally those with 50 or more “full-time” employees, to offer coverage to full-time employees and dependents (other than spouses). If the employer … Continue Reading

Taking credit for setting up a retirement plan

As we near the end of the year, many business owners rush to establish retirement plans to capture calendar fiscal year tax deductions. If you’re one of those small business owners, you may also be eligible to receive a tax credit for expenses you incurred to implement your plan. What’s the difference between a tax … Continue Reading

IRS issues updated Rollover Chart

What’s an eligible rollover distribution and what’s not can be a complicated and confusing matter. Here’s a recent and handy rollover chart by the Internal Revenue Service updated for new rules that may be helpful. 1 Qualified plans include, for example, profit-sharing, 401(k), money purchase and defined benefit plans 2 Beginning in 2015, only one … Continue Reading

The Top Five 401(k) compliance matters that employers can’t delegate away

Harry S. Truman, the 33rd President of the United States, is pictured above with the sign he kept on his desk, “The buck stops here.” It meant that the President had to make the decisions and accept the ultimate responsibility for those decisions. What does that have to do with a 401(k) plan? Everthing. It’s … Continue Reading

Retirement Plan Limits for 2015

On October 23, 2014 the IRS announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2015. The chart below highlights the new limits for 401(k) and other defined  contribution plans. The rest of the new limits and the fine print can be downloaded here.… Continue Reading

How safe is your retirement nest egg from creditors?

So, you’ve transferred your 401(k) retirement nest egg into an individual retirement account (IRA). This gives you more control over management and distribution of IRA assets. But, you may have concerns about creditors and their ability to attack your retirement assets, which are now conveniently consolidated from several employer plans into one convenient IRA. Will … Continue Reading

Fidelity reports average 401(k) balance up 12.9% in last 12 months. But let’s not live in the moment.

It’s a clunker of a headline, but there’s an important point to make. Yes, it’s good news that Fidelity reported last Friday. The average account balance for participants in 401(k) plans they administered rose to $91,000 for the quarter ended June 30, 2014, an increase of 12.9% in the last 12 months. But let’s not … Continue Reading

IRS opens window for Pension Protection Act Restatements

If you’re an employer who sponsors a 401(k) or profit sharing plan, it’s time to amend and restate your plan. Qualified retirement plans must operate in accordance with their plan documents. Ongoing legal and regulatory changes in retirement plan rules frequently require plan sponsors to amend and restate their plans to keep their documents compliant … Continue Reading

IRS Establishes Pilot Penalty Relief Program for Late Form 5500 – EZ Filings

That’s the collective sigh of relief by those business owners who, for whatever reason, haven’t filed Form 5500-EZ for their retirement plans. It’s a big deal especially for those business owners with so-called Solo-K plans. 401(k) plans were introduced in 1978, but it took a tax change starting in 2002 to allow business owners to … Continue Reading
LexBlog