Retirement Plan News
Reducing or Suspending Safe Harbor Contributions Mid-Year
On December 20, 2019, the Setting Every Community Up for Retirement Enhancement (SECURE) Act was signed into law. One of its provisions eliminated the annual safe harbor notice requirement for plans meeting the ADP Test Safe Harbor by making a nonelective contribution. The information contained in this white paper remains relevant for safe harbor plans that satisfy the safe harbor by making a matching contribution; however, until Treasury issues further guidance, it remains unclear what notice requirements, if any, will apply to a mid‐year reduction or suspension of nonelective safe harbor contributions (or for the "wait and see" approach described later in this article).
Make sure Participants Receive the Plan Documents They're Entitled to
Getting the word out about your retirement plan is an ongoing activity. In addition to the enrollment materials you provide newly eligible employees, you probably communicate with participants routinely, answering their questions and encouraging them to take full advantage of the plan.
Could Your Plan’s Internal Controls Be Stronger?
When it comes to operating a retirement plan, there are a lot of moving parts. A strong system of internal controls can help keep a plan operating smoothly and in compliance with the law. What are internal controls? The IRS describes internal controls as policies and procedures designed to detect and prevent errors in a retirement plan.
Best Practices in Hardship Distributions
These days, many plans are experiencing an uptick in the number of participant requests for hardship distributions. Much of this increased activity may be attributed to our prolonged and tepid economic recovery. As these requests are considered, you want to be sure not to act to the detriment of your plan.
Record Retention—The “Paper” Trail
As plan sponsors are well aware, the pension law (ERISA) includes specific reporting and disclosure obligations with respect to qualified retirement plans. A lesser known fact is that ERISA also has specific requirements regarding the retention of plan records.