Independent Actuaries Blog Category: Defined Contribution

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

Have You Noticed All of the Participant Notice Requirements?

There are potentially more participant notices that apply to a retirement plan than can be counted on both hands. Not all notices apply to all types of plans and some only apply to certain participants. Some are required quarterly, some … Continue reading

Roth Opportunities in Qualified Plans

Business owners who are contributing to a Roth IRA (or are considering if they should) can realize a greater impact with the Roth features in a 401(k) plan. 401(k) plans can allow participants to defer salary as a Roth contribution … Continue reading

IRS Issues Guidance on Hardship Distributions

The IRS recently issued an internal memorandum to provide guidance to its Employee Plans examiners who encounter a defined contribution plan that allows hardship distributions. A plan sponsor can take the participant’s word that there is no other source of … Continue reading

Discontinuing Employer Contributions and Vesting Requirements

Did you know that when employer contributions (e.g., profit sharing, safe harbor and matching contributions) to a defined contribution plan are completely discontinued, the plan’s accounts typically must be fully vested? As with all things IRS, it is important to … Continue reading

IRS Announces Pension Plan Limits for 2015

Believe it or not 2014 is quickly approaching its end and that means updated retirement plan limits. Earlier this week the IRS announced these new limits for 2015. Some limits increased from 2014 to 2015, and some stayed flat. Highlights include: … Continue reading

Bundled Service Providers, Investment Fees and 401k Account Balances

A small business owner using a bundled service provider for his/her 401(k) plan is akin to a farmer letting the fox guard the henhouse. Pete Kirtland writes that bundled service providers “don’t always pick…funds for the right reasons. They might … Continue reading

Save My 401(k)!

If you’ve listened to radio or watched TV in the last few months, you’ve heard the term “fiscal cliff” bandied about. The fiscal cliff the politicians and pundits are describing is the expiration of a number of tax cuts at the … Continue reading

IRS Announces Pension Plan Limits for 2013

2013 is around the corner, and that means updated pension plan limitations. Last week, the IRS announced the 2013 limits, many of which will increase in 2013 due to the increase in the cost of living index. Some of the … Continue reading

New Retirement Plan Limits for 2012

It’s hard to believe we’re in 2012 already! With the New Year, there are new retirement plan limits you should know about. Deferrals (401(k) salary deferrals) and catch-up deferral contributions are always limited on a calendar year basis. For 2012, … Continue reading