Superannuation is what Australia calls its retirement system, and they are doing something right. According to the 2014 Melbourne Mercer Global Pension Index (8o-page report if downloaded), an annual study that ranks national retirement systems based on the relative importance of adequacy, sustainability, and integrity, Australia only trails Denmark graded A, and tied with the … Continue Reading
When defined benefit pension plans come up in conversation (that’s what we ERISA folks do when we get together), it’s usually about the decline of traditional pension plans and the increase in of cash balance plans. Frozen pension plans are rarely included. They should be since they are a significant part of the retirement plan … Continue Reading
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
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
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
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
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
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
With thanks to All Finance Tax, Ltd., a Cork, Ireland-based firm providing tax, accounting, and strategic business consulting services.… Continue Reading
Remember DB(k) plans? If you were in the retirement plan business back in 2006, you probably do. If you’re new in the business, you may not know about them at all. A DB(k) Plan, formally called an “Eligible Combined Plan”, is a hybrid retirement plan that was created by Congress as part of the Pension … Continue Reading
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
That’s not someone from a Sherlock Holmes story. But it could be very well be my old college buddy Bob (not his real name, of course). Bob was of the era in which aspiring stockbrokers went to New York immediately upon graduation to be trained by one of the wire houses. Bob came back home … Continue Reading
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
If you’re anywhere near a retirement plan, you have probably received a ton of emails from law firms and 401(k) providers on the recent Supreme Court decision involving same-sex marriages. With the caveat that I’m not an attorney, here’s my Cliff Notes version on the June 26, 2013, United States Supreme Court ruling in U.S. … Continue Reading
Most business owners think they are undercompensated. The Internal Revenue Service does too for many business S Corporation owner employees. Their perspective is not exactly the same. The focal point is a sometimes hotly contested issue called “reasonable compensation”. The IRS has come out the big winner. Here’s the story. Since the publication of IRS Revenue Ruling … Continue Reading
For many participants in a 401(k) or pension plan, filling out that beneficiary designation is a one and done activity. Then, forgotten, but sometimes changing circumstances intervene to invoke the Law of Unintended Consequences. As in a recently decided case in which a U.S. Court of Appeals held that a pre-nuptial agreement does not waive … Continue Reading
I’m a big NBA fan, and I love those time traveling Kia commercials featuring Blake Griffin, the All Star forward of the Los Angeles Clippers.He’s in his Kia Optima and says, "Kia, take me back to 1992." There he meets himself and learns valuable life lessons. I can also imagine time traveling. Not with a … Continue Reading
Pension law changes can come in many forms. They can be in the form of such specific tax laws as the Pension Protection Act of 2006 (PPA). They can be included in technical corrections acts (See Technical Corrections To The Pension Protection Act Of 2006: Another Bite Of The Apple? Or, they can be included … Continue Reading
While much of the retirement plan world is understandably focused on the upcoming fee disclosure deadlines, there’s another deadline that’s looming closer. It’s April 30, 2012, the date by which pre-approved defined benefit pension plans must be restated for EGTRRA. Here are frequently asked questions that should be helpful in helping you understand this important … Continue Reading
Each year the Internal Revenue Service announces the cost-of-living adjustments applicable to qualified retirement plans for the following year. Unlike 2001 in which most limits did not change from the prior year, most limits increased: Following are the key retirement plan limits announced yesterday by the IRS: The 401(k) and 403(b) limit for employee contributions … Continue Reading
My blogging buddy security lawyer Bill Singer on his blog, Broke and Broker, An Irreverent Wall Street Blog (always a good read), posts frequently about investment scams and scoundrels. In one of his latest, Bill writes that Feds Bust Bank Guarantee Scam. But the Feds don’t have the manpower and resources to get to all … Continue Reading
The answer is obvious. Both can be difficult and often impossible to understand. Modern art enthusiasts do have help. They can turn to the Understand Modern Art instantly Breath Spray as shown here from the website Photography Uncapped. Unfortunately, there is no such canned (pardon the pun) explanation to help communicate a defined benefit plan to … Continue Reading
That’s the album cover of the original Broadway cast recording of the 1965 musical, On a Clear Day You Can See Forever (which subsequently went on to become a movie starring Barbara Streisand in 1970 and which will be returning to Broadway starring Harry Connick, Jr. this Fall). It’s the story of clairvoyant Daisy Gamble … Continue Reading
