Independent Actuaries Blog Category: Defined Contribution
IRS Announces Retirement Plan Limits for 2021
The IRS has announced the new retirement plan limits for 2021. Most limits stayed flat, but a few increased from 2020 to 2021. Highlights include: The compensation limit used in determining benefits and contributions for both defined benefit and defined … Continue reading
Expanded Access to Retirement Funds for Plan Participants
The Corona virus Aid, Relief, and Economic Security (CARES) Act became law on March 27. 2020. The Act contains retirement plan provisions to provide relief for participants affected by the current crisis. See below for a general summary of the … Continue reading
PPP Loans and Retirement Contributions
The hugely popular Payroll Protection Program (PPP) provides loans to small businesses that are ultimately forgivable if the funds are used to cover payroll costs and other specified expenses within the eight weeks following receipt of funds, so long as … Continue reading
DB Plans – Close vs. Freeze vs. Termination
In a recent blog we discussed concerns that defined benefit (DB) plan sponsors may have in the face of the COVID-19 outbreak. One of those concerns regards near-term contribution requirements that may be overly burdensome when coupled with severely reduced … Continue reading
Defined Benefit Plans Can Get Sick, Too
As has been well-publicized, the Coronavirus (along with other factors) has resulted in a steep financial market plunge this week. As of the day I’m writing this, the S&P 500 is down nearly 24% since the beginning of 2020, with … Continue reading
Congress Passes Retirement Legislation
Yesterday (December 19), Congress passed a spending bill containing sweeping retirement plan legislation, designed to allow and encourage Americans to save more. The portion of the legislation pertaining to retirement is called the Setting Every Community Up for Retirement Enhancement … Continue reading
Changes in Pension Accounting Standards Taking Effect this Year
The soon-to-be-effective Accounting Standards Update (ASU) 2017-07 makes changes to the way pension plans are accounted for, designed to improve the transparency of pension plan operational costs. Under the old rules, all components of pension-related expenses were aggregated together as … Continue reading
Beneficiary Designations: Whose Responsibility is it?
When it comes to Retirement Plans it can sometimes be confusing who does what and whether the responsibility falls on the Employer/ Plan Sponsor, third party administrator (TPA), recordkeeper or the participant. When it comes to beneficiary designations most plan … Continue reading
IRS Announces Retirement Plan Limits for 2019
The IRS has announced the new retirement plan limits for 2019. Most limits increased from 2018 to 2019, and some stayed flat. Highlights include: The compensation limit used in determining benefits and contributions for both defined benefit and defined contribution … Continue reading
Tax Reform and Retirement Plans
We’re getting a lot of questions these days about how the proposed tax reform bills might impact retirement plans. For reference, this Forbes article provides a good summary and comparison of current law versus the House and Senate bills. Here … Continue reading
