Say what you will about 401(k) loans – and we have over the years – they are a fact of 401(k) life and were addressed in the recently passed Tax Cuts and Jobs Act (the “Act”). Before we get to the new rules, let’s start with the state of 401(k) plans. Recent data is difficult … Continue Reading
Search Results for: 401k loans
TIAA Lawsuit Puts the Spotlight on 403(b) Participant Loans
Participant loans from 401(k) plans have never been an employer favorite plan provision. (See Defined Contribution Plan Loans Can Be Expensive, @401k_TV). Now participant loans from 403(b) plans have come into focus.… Continue Reading
1,200 employers to receive IRS 401(k) Compliance Check Questionnaire
There’s an old expression among tax practitioners referring to taxpayers who know there is a potential tax problem, but are willing to take their chances. They’re “playing audit roulette”. Not a good thing for plan sponsors to do with stepped compliance activities by the Internal Revenue Services and the Department of Labor who have … Continue Reading
Hard times mean more 401(k) hardship distributions, revisited
The economy doesn’t seem to be improving, and hardship distributions from 401(k) plans continue to be taken. A few months ago I posted, Hard Times Mean More 401(k) Hardship Distributions. I’m revisiting this matter again to point you to how to make hardship distributions correctly as discussed in the IRS’ Summer 2009 Edition of Retirement … Continue Reading
The bailout bill, the stock market, and 401(k) plans: what’s ahead for us?
See full-size image. I was certainty premature yesterday in thinking the bailout bill was going to pass when I wrote the bailout bill is like a Christmas tree – something for everyone including retirement plans. And I wasn’t alone. The stock market reacted with the largest one day drop in its history. No one knows the … Continue Reading
“It’s for retirement stupid…”
That’s the title of yesterday’s post by Eve Tahmincioglu on her blog CareerDiva. Eve writes about the disturbing trend of more 401(k) participants taking out loans. I’ve written about it myself, 401(k) Participant Loans on the Increase, But Not Always a Good Thing to Do. Here’s what Eve has to say about it: Looking for … Continue Reading
401(k) loan? Just stop by the 401(k) ATM
I’ve written several articles about 401(k) loans in the past pointing out the negatives, and at one point I asked the question, Are 401(k) accounts piggy banks? Well, excuse me for being so retro, because now through the combination of modern technology and consumer marketing comes the 401(k) Debit Card. An article in TheStreet.com by … Continue Reading
Retirement plan pitfalls for plan sponsors to avoid
Most of the retirement plan coverage in the mass media is about bad things happening to employees or some aspect of the Pension Protection Act of 2006. So it’s always good when a writer points out to plan sponsors that they have certain obligations in managing their retirement plans and the problems to avoid. Marc … Continue Reading
SIMPLE vs. 401(k): decision deadline approaching
If you’re thinking about establishing a SIMPLE in 2006 for your small business, then you don’t have much time. It must be place by October 1. No doubt you’ve been told that it’s easy to establish – and relatively inexpensive – and also easy to maintain – and also relatively inexpensive. That’s true, or course. It’s … Continue Reading
Are 401(k) accounts piggy banks?
In a earlier post, I asked the question whether 401(k) loans were easy money and discussed both sides of the questions. Yesterday, Walter Updegrave, MONEY Magazine senior editor, in his Ask the Expert column responds to a reader who asks whether it’s a good idea to borrow money from your 401(k) account. Mr. Updegrave says … Continue Reading
