Carve-Out Plans
“Carve out” plans have become the latest rage in the design of pension and profit...
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Tag: Greg Matthews
IRS Issues Final Regs On Retirement Plan Payout Options
Employers are permitted to revise provisions of their plans through a formal amendment. This year...
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What to do with a Rehired Participant
Most plan documents will specify that a rehired former employee who had been a participant in the...
Read MorePension Enron Legislation Impacts Small Business
Congress has rolled out its heavy artillery to blast away any possibility for a repeat of the Enron mess. Backed by a heavy media blitz, the proposed legislation is designed to avoid other 401(k) participants, in large and small...
Read MoreThe Party Everyone Will Pay For?
As of December 2004, the Pension Benefit Guaranty Corp. PBGC had taken over pension plans with liabilities that exceeded assets by $23 billion. Earlier this year United Airlines increased the PBGC’s deficient by an...
Read MoreIRS Okays New 401(k) Strategy
In June, the IRS released guidance (confirming its prior position on this issue) blocking one corporate tax strategy to accelerate the deductibility of 401 (k) salary deferrals and matching contributions that are attributable to...
Read MoreTax benefits for Roth not fully settled
There is apparently a still open issue relating to qualifying for tax free distributions from a Roth 401(k). The issue arises if EGTRRA — the 2001 pension reform legislation that, among other things, created Roth 401(k)...
Read MoreProblems with small accounts of former employees
As a way to better manage the cost of administering a plan, employers frequently ask about the options for allocating plan expenses to participants. These discussions may focus on several related issues including whether...
Read MoreA more sophisticated look at the benefits of Roth contributions
Most analyses of the tax benefits of Roth contributions compare the results of a tax-deferred contribution to a plan versus the contribution of the same amount as a Roth contribution, less the tax payment required on the...
Read MoreDistressing savings report from Hewitt
A new study from benefits consulting firm Hewitt Associates contains very bad news for 401(k) participants. The study reviewed the account balances and deferral rates of 1.8 million employees at 72 large companies. It factored...
Read MoreIndia Outsourcing Comes Home
Is your plan’s third party administrator (TPA) outsourcing any of your plan administration services to India? You may never know the answer to this question unless you ask. You just may want to do that based on recent...
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