Making a QNEC or QMAC isn't always easy, but it doesn't have to be a headache. This complete guide breaks down everything you need to know about QNECs and QMACs in plain language and step-by-step instructions.

401(k) nondiscrimination testing – what the heck is it? Why does it matter? What consequences could it have for your business, and how do you avoid them? The truth is, there’s a lot to know about 401(k) nondiscrimination testing. Whether you’re new to 401(k) administration, you’

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

If you have been offering a company 401(k) for more than a year, then you know your plan requires a lot of testing to stay compliant. That’s because one of the primary duties of employers offering a 401(k) is to ensure that it’s designed to benefit

Employers start 401(k)s for lots of reasons. Some consider a 401(k) a great recruitment tool. Others may see the plan as a tool for retaining employees. A very common role for the 401(k) is helping company owners and key employees shelter more income from taxes. This

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

For sponsors of 401(k) plans, the first part of the year is exam time. That’s when several tests are performed to determine if the plan’s benefits are broadly spread among employees. If the test results indicate the plan favors owners or highly paid employees, corrective action must

Offering a 401(k) means complying with IRS and ERISA rules, and one of the cornerstones of compliance is making sure that 401(k) benefits are spread widely among employees, not primarily benefiting the highest paid. In other words, 401(k) rules require that plans do not discriminate in favor

Every single day, I work with people in compliance and 401(k) plan administration. I talk to recordkeepers, compliance officers, and 401(k) fiduciaries. And every single day, I find new ways to appreciate the responsibilities, challenges, and art behind creating a place where employees are happy and appreciated. For