Independent Actuaries Blog Author: Sara Ark
2024 Plan Limits
The IRS has announced the new retirement plan limits for 2024. Highlights include: The compensation limit used in determining benefits and contributions for both defined benefit and defined contribution plans has increased from $330,000 to $345,000. For defined benefit plans … Continue reading
Related Employers and Retirement Plans
The IRS requires that certain sets of employers be treated as a single employer for retirement plan purposes. When establishing a new retirement plan, there are questions that help determine the feasibility of a plan and what provisions to include. … Continue reading
Ripple Effect of Delaying DB Contributions
The Coronavirus Aid, Relief and Economic Security (CARES) Act was signed into law on March 27, 2020. The most prominent pension funding relief provision is an automatic extension for cash contributions due during 2020. All defined benefit plan contributions originally … Continue reading
A Cautionary Tale of Low Interest Rates with Lump Sum Distributions
Defined benefit plans can offer lump sum distributions to participants when they terminate employment. This option is common as a method for plan sponsors to lessen administrative costs and offer portable benefits. The lump sum is equal to the present … Continue reading
Required Minimum Distribution Time
A reminder that Required Minimum Distributions (RMDs) are payable for anyone over the age of 70-1/2. These rules can be complicated. For money held in an IRA, 401(k) or Profit Sharing Plan, the amount of the distribution is based on … Continue reading
New E-Delivery Safe Harbor
In response to an Executive Order issued last year to strengthen retirement security, the Department of Labor (DOL) issued proposed rules for disseminating pension plan notices electronically. Participant notices for pension plans include Summary Annual Reports, Individual Benefit Statements, Annual … Continue reading
Simple, Easy Plan Hygiene
As a plan fiduciary, one of your duties is to follow the provisions of the plan. It seems simple. It should be easy. Practically speaking, it is a daunting task to read, understand, and follow all the terms of the … Continue reading
Death Benefits? That Depends.
“That depends” is often the answer I give when my clients ask seemingly simple questions. My statement is followed by a series of questions that help me answer their original question. Alternatively, I could talk for hours on the myriad … Continue reading
Death, Taxes, and Pension Actuaries
Benjamin Franklin noted that “nothing is certain but death and taxes”. That phrase has particular irony for pension plan actuaries. While ultimately certain, we use mortality assumptions to calculate pension liabilities that in turn determine tax advantages. The mortality assumptions … Continue reading
IRS Prohibits Lump Sum Offerings to Current Retirees
On July 9, 2015, the IRS issued notice of their intent to amend regulations prohibiting defined benefit plans from offering a lump sum option to participants already in pay status (Notice 2015-49). At first glance, this seems like an extreme … Continue reading
