Due to the current coronavirus pandemic, many businesses have been hit hard financially and are trying to navigate the impact of operating with a significantly reduced income. Unfortunately, the financial challenges many companies are experiencing are forcing these employers to lay off employees. With that said, if you’re a
Yes, there’s: “Good news, everyone!” (Or, almost everyone). The Treasury Department has raised 401(k) annual contribution limits for 2020. That means lots of people now have the opportunity to save even more for their retirement - something we love. Here are the highlights from the Treasury Department announcement:
401(k) administrators play many roles — including, often somewhat reluctantly, banker. In addition to all other duties, plan administrators are responsible for the administration of 401(k) retirement plan loans. This includes… Making sure that loans taken from the plan comply with the plan documents & IRS rules Setting up
ERISA record retention requirements. Say that five times fast. All joking aside, this is actually pretty serious business. The Employee Retirement Income Security Act of 1974 requires that you retain important plan documentation. Failing to do so can get you into really hot water in the event of an audit.
Hotel Pacifica has problems with their 401(k). At the end of every year, Red Jensen, Hotel Pacifica’s Director of HR, takes what he likes to call his “annual 401(k) beating.” Several highly compensated employees (HCEs) – including top executives – storm into his office to receive their corrective distributions
Non-discrimination testing is a pain. When employees aren’t participating in the 401(k) or saving enough, non-discrimination testing can severely limit how much highly compensated employees (HCEs) can contribute. This is a source of great frustration for plan administrators – especially in sectors like hospitality and food services where participation
Increasing employee deferral rates is an excellent way to get more benefit from your company’s 401(k). Not only do higher saving rates help your employees build their retirement nest egg, but they also make it much easier for your plan to pass non-discrimination testing. The problem? Getting employees