Category: 401(k)
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IRS does not pay ‘bounties’ to retirement plan auditors
I found this interesting exchange in the reader comments on Employee Benefits Adviser. I changed the names and of course can’t vouch for the authenticity of the writers. The article topic was the increased rate of audits of retirement plans since the IRS is aware that a high percentage of retirement plans have major deficiencies.…
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The goals of compensation and benefits planning
It occurred to me over this weekend that over more than three decades I’ve produced hundreds of recordings, articles, columns and radio spots on various technical aspects of compensation and employee benefits planning, but that I’ve never talked about the basic primary goals that we all share in this work. There are four primary…
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Help wanted with 401(k) plans
The administrative branch of the federal government is behind a recent curious effort by the Department of Labor to cut retirement plan fees. It seems to be a case of “it’s not broke but we’ll fix it anyway and see if it turns out better”. Proponents argue that – all other things remaining the same…
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SEP IRA or Solo 401(k)?
If you are self-employed, is it best to use a Simplified Employee Pension Individual Retirement Account (SEP IRA) or a one person 401(k) plan? The answer depends on a range of factors that should become clear in a short discussion of your objectives. Both are easy and inexpensive methods to save on current taxes and…
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Ten easy and inexpensive employee benefit upgrades
Popular small business employee benefits that can be added within one day for less than $100 Small business owners often struggle to find affordable and manageable employee benefits for themselves and their employees. Here are 10 employee benefits that can be set up in a half hour at a cost less than $100. Health insurance…
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ERISA is still king per US Supreme Court
Comments on Vermont Green Mountain Care Board v. Liberty Mutual Insurance Company and what it means to small practitioners in the employee benefits field Yesterday the U.S. Supreme Court ruled on a case involving conflicting state and federal law surrounding operation of an employee benefit plan administrator. In a relatively easy 6-2 decision the Court sided with Liberty…
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The wrong way to do year-end tax planning
Implementation is the most important part! The Thanksgiving Day online edition of The Wall Street Journal carried an article about year-end tax planning strategies. It caught my attention because this is my favorite part of my own professional practice; a service I look forward to providing in the last quarter of each year. It is…
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Starting a 401(k) plan for your small business
This post covers the planning steps required to help ensure the launch of a successful small business 401(k) plan. Planning First, consider whether you really want a 401(k) plan. It seems that every small business likes the idea of a 401(k) plan until they fully consider the cost, administrative requirements and restrictions placed on higher…
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Clear explanation that there are no “1099 employees”
I like this clear simple language in Employee Benefit News: “Employers face an uphill battle in classifying a worker as an independent contractor due to DOL guidance that defines ‘employee’ so broadly that such a classification should only be reserved for a narrow subset of workers.” It is amazing how many employers are oblivious of…
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How to fix your small business 401(k)
This week President Obama’s administration gave a strong endorsement of the Department of Labor’s plan to impose fiduciary obligations on investment brokers and advisors working with retirement plans. The controversial proposal is based on a belief that new rules are a needed consumer protection to prevent billions in costs due to bad advice. Most consumer advocates…