With the passage of SECURE 2.0, there were near 100 updates to retirement plans. One that is quite welcome is an increase in the Involuntary Cash Out limit from $5,000 to $7,000, which was available as of December 29, 2023. This means that if a Plan Sponsor wanted to cash […]
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A common question we get when calculating Employer contributions is what is a true-up? A true-up is anytime a Plan Sponsor might have a contribution (most commonly a match but we’ve seen non-elective, too), that is calculated and deposited throughout the year (usually on a payroll basis) but the Plan […]
Employer Contribution True-ups
Establishing new Safe Harbors for the current year has been updated in a significant way under the SECURE Act. We’ve outlined the deadlines below. As a reminder, this means that a Plan Document must be drafted, signed and plan accounts open to meet the deadline as shown below: 10/1/2020: Any […]
Timelines for establishing Safe Harbor 401(k)s under SECURE Act
We’ve been getting a lot of questions regarding the new SECURE Act tax credit available for the 2020 plan year and following. Below is a great summary we put together from our reading of the law: Old rule: Lesser of half or $500 tax credit for first 3 years of […]
SECURE Act Tax Credit
With this new bill passing, we wanted to provide an update to the key provisions since some businesses are using retirement plan employer contributions for some of their expenses for forgiveness of the loans. The main features are (this come from the House version since we’re awaiting final text): To […]
Paycheck Protection Program Flexibility Act of 2020 Major Provisions
Section §1102 of the CARES Act allowed for the PPP through the Small Business Administration (SBA) loan program. This week the application will be released regarding forgiveness for the loans taken. At this point, everyone taking a loan was somewhat familiar with the application, but the recent updates are as […]
Payroll Protection Program (PPP) updates as of today
The passage of the CARES Act was a huge step towards helping plans and participants but more is needed legislatively. Check out the link to our friends at the American Retirement Association (ARA) and their continued lobbying efforts for additional retirement plans protections: https://araadvocacy.org/issues/coronavirus/#/23 Please consider contacting your US Senators and […]
More advocacy needed for retirement plans
These various plan types can be used for varying goals and stages within a business. For example, a business may start with one plan type and then evolve over time. Other times features of plan types may not be available. For a complete analysis, please contact us and we’d be […]
SIMPLE IRAs, SIMPLE 401(k)s and traditional 401(k)s: A comparison
When working with your financial advisor and third party administrator (TPA) to create a retirement plan, there are several considerations: What is the purpose of the plan? Tax savings Retirement readiness for owner(s) or other staff members Employee benefit Ideally, a retirement plan covers all three of the above goals, […]
Common plan design considerations
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