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Exploring Employee Benefit Plans

Part 1: Eligible Compensation Part 2: De Minimis Balances of Terminated Employees Part 3: Maintaining Documentation Part 4: Timely Remittance Part 5: Long-Term Part-Time Employees The long-term part-time employee is a SECURE Act and SECURE 2.0 Act change which goes into effect after December 31,…

March 28, 2024

Gift Tax – How it Works and Who Pays

We often get questions from our clients about gifting and the potential tax implications. A gift of money or property is not deductible on your personal income tax return nor does the recipient report the gift as income on their tax return. However, gifts may be subject to the federal…

March 26, 2024

Exploring Employee Benefit Plans

Part 1: Eligible Compensation Part 2: De Minimis Balances of Terminated Employees Part 3: Maintaining Documentation Part 4: Timely Remittance Common Finding Per the IRS and DOL, retirement plan withholdings should be remitted to the Third-Party Administrator (TPA) or Custodian/Trustee as soon as “administratively feasible.”…

March 22, 2024

Exploring Employee Benefit Plans

Part 1 – Eligible Compensation Part 2 – De Minimis Balances of Terminated Employees Part 3: Maintaining Documentation Common Finding There are several documents that Plan Sponsors must retain. Examples include, but are not limited to, enrollment forms, declination forms, change in election forms, management’s approval of…

March 14, 2024

Tax-Free Rollover from 529 to Roth IRA

One of the more exciting provisions of the SECURE 2.0 Act, signed into law December 2022, is the tax-free rollover from a 529 educational savings account into a Roth IRA. This provision became effective in 2024 and will help to reduce or eliminate the problem of having unused funds in…

March 12, 2024

Exploring Employee Benefit Plans

Read Part 1 Part 2: De Minimis Balances of Terminated Employees Common Finding De Minimis distributions should occur when balances are below a certain threshold, as defined by the Plan document. Most plans have a requirement for balances less than a determined value of $1,000 or $5,000. The maximum…

March 7, 2024

Exploring Employee Benefit Plans

Part 1: Eligible Compensation Common Finding Plans have the ability to define the Plan’s eligible or ineligible compensation. It is vital that those involved in payroll are well aware of these delineations. The Company’s payroll calculations for employee retirement withholdings and employer match or profit-sharing benefit need to agree with…

February 29, 2024