To avoid costly penalties and administratively burdensome correction procedures, plan sponsors must remain up-to-date with respect to applicable Health and Welfare plan limits. Earlier this year, the IRS announced cost-of-living adjustments affecting the 2019 dollar limitations for Health and Welfare plans and other related Health and Welfare Benefits items. We've included some of the most commonly used business Read More
How Does an ESOP Work?
An employee stock ownership plan, commonly known as an ESOP, is a retirement plan that is somewhat similar to a 401(k). However, an ESOP is usually company-funded with stock from the employer. Although ESOPs have been in use for years, misconceptions exist as to how an ESOP works. Forming an ESOP The employer company sets the ESOP in motion by creating an employee stock ownership trust (ESOT), which is sometimes Read More
The Employee Benefits Security Administration’s Role in ERISA Compliance
The Employee Benefits Security Administration (EBSA) is just one of the divisions operating under the United States Department of Labor. The EBSA’s mission, as stated on its website, is: “to assure the security of the retirement, health and other workplace related benefits of America’s workers and their families. We will accomplish this mission by developing effective regulations; assisting and educating workers, Read More
Are You Meeting ERISA Deadlines?
The Employee Retirement Income Security Act of 1974 (“ERISA”) sets minimum standards for many private industry pension and health plans. ERISA regulations also set deadlines for the submission of many reports and forms. Since penalties for ERISA compliance violations can be severe, it’s important to know whether your retirement plans are meeting ERISA deadlines. First, we can look at the types of deadlines that Read More
Three Reasons to Offer an ESOP to Your Employees
As the employment landscape changes, employers may search for benefit options that provide value to their employees and their business. One possibility that is sometimes overlooked is the employee stock ownership plan or ESOP. Similar to a profit sharing plan, an ESOP invests in the stock of the employer thereby creating a situation where the employer and employees share ownership of the business. Since ESOPs offer Read More
How to Defend an ERISA Lawsuit
People often say we live in a litigious society. Even employee benefit plans are not immune to lawsuit-happy plaintiffs. Plan administrators who are sued may be relieved to learn there are ways to defend an ERISA lawsuit. Motions to Dismiss or for Summary Judgment A defendant typically begins by assessing the claims contained in the lawsuit, then begins the process of defending against those claims. One of the Read More
IRS Updates Retirement Plan Limits
One of the most common compliance issues for employers and plan sponsors is failure to adhere to annual retirement plan limits. To avoid costly penalties and administratively burdensome correction procedures, plan sponsors must remain up-to-date with respect to applicable retirement plan limits. Today, November 1, 2018, the IRS announced cost-of-living adjustments affecting the 2019 dollar limitations for retirement Read More
Georgia Society of CPAs Business and Interest Community Newsletter
Most employees want control over who receives their retirement plan account balance when they die. Read more. Read More
Journal of Pension Benefits
"Understanding the Safe Harbor Rules for Determining Full-Time Employee Status and the Litigation Risks Associated with Workforce Restructuring Under the Affordable Care Act," Spring 2014, volume 21, number 3 Read More
How do I Correct a 401(k) Plan Loan Error?
Many 401(k) plans allow loans to participants. However, failure to properly administer plan loans is a common 401(k) compliance issue. Before distributing loans to participants, plan sponsors should ensure that their plan document: (i) allows plan loans and (ii) appropriately reflects the requirements prescribed under Internal Revenue Code (the “Code”) Section 72(p). What are the loan requirements under the Read More
