Highly compensated employees (HCEs) and key employees are terms used to describe employees for the annual compliance testing of a retirement plan. It is necessary to conduct annual nondiscrimination and coverage testing on a plan to show the plan does not favor the...
Many small businesses rely on safe harbor 401(k) plans to stay compliant with the IRS and to allow owners and key employees to maximize their salary deferrals while providing meaningful retirement savings for all participants. Plan sponsors may select a match or nonelective safe harbor contribution to achieve their individualized goals.
What is a Cash Balance Plan? A cash balance plan is a type of qualified pension plan in which the employer guarantees a contribution level and a minimum rate of return. Often referred to as a hybrid plan, a cash balance plan has many charac- teristics of both a...
TAX CREDIT OPPORTUNITIES FOR NEW QUALIFIED RETIREMENT PLANS Tax credits associated with the start-up of a retirement plan are commonly overlooked in the pension planning arena. These types of tax credits help employers offset the upfront costs of establishing...
In 1974, the Employee Retirement Income Security Act (ERISA) was enacted to regulate most types of employee benefit plans. An ERISA fidelity bond is a type of insurance that protects the plan against losses caused by acts of fraud or dishonesty by persons who handle plan funds or property.