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Fall Issue November 2016, Volume 9 / Issue 3
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Notes from the President
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Gary Zurek
The primary conversations and issues surrounding retirement plans are the same today as they were five years ago. People know they need to save for retirement, but they don't always know how much they've saved compared to how much they need to save.
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FAQ's
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Becky Fisher & Dennis Culhane
When is a Retirement Plan Audit Required?
DOL regulations require that retirement plans with 100 or more participants obtain an audit from an independent qualified public accountant as part of the annual Form 5500 reporting. In addition, small plans with "non-qualified assets" might also be required to obtain an audit.
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TSC Spotlight
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Andrea Gelhar & Holly Dayton
Announcing Enhanced Employee Notice Instructions!
Depending on your plan design, your plan features may require initial and annual notification to eligible employees. To assist in meeting the notification requirements, we have improved the Employee Notice Instructions found on the TSC Secure Plan Access website. The redesigned tool boasts easier navigation, more helpful, concise descriptions, and a fresh, warm look.
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TSC Employee Bios
Meet a Couple of our TSC Team Members
Nicole King
Native to Minnesota, I graduated from Forest Lake High School, and earned my Bachelor of Arts degree from the College of St. Benedict. My past work experience in both qualified and non-qualified benefit planning and administration has provided me a basis for success as a retirement benefits professional. My most recent journey as a personal trainer has...
AJ Kane
I was raised in Buffalo, MN and graduated from Buffalo High School in 2010. I applied for colleges all over the country, but ultimately chose to stay local and attend the University of Minnesota Duluth. During my time at UMD, I developed many good friendships and memories. Some of my favorite hobbies were...
Rachel Travers
I was born and raised in Vadnais Heights, MN and graduated from Mounds View High School in 2012. I attended University of Wisconsin-Eau Claire primarily for their swimming program. I graduated in May 2016 with a Bachelor of Business Administration degree in Marketing-Analytics. I really enjoy...
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Industry/Legislation Updates
Revenue Procedure (Rev. Proc.) 2016-47 was released by the IRS in August, 2016. Typically, distributions paid directly to plan participants or IRA holders become taxable unless they are rolled over to a qualified source within 60 days. The new Rev. Proc. provides for relief of this 60-day rollover time limit if certain circumstances are met.
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Retirement Plan Relief for Louisiana Flooding Victims - Juhl Stoesz
In August, the IRS announced several retirement plan measures designed to provide relief to people affected by the storms and flooding that occurred in Louisiana earlier that month. The following highlights some of the key provisions.
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What Does This Mean?
- Paul Erickson
Attribution Rules
"What do you mean my son is a highly compensated employee? He only makes $10,000 a year."
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Of Interest
- Karen Thompson
Automatic Contribution Arrangements
The IRS defines an automatic contribution arrangement (also known as automatic enrollment) as "a feature in a retirement plan that allows an employer to enroll an eligible employee in the employer's plan unless the employee affirmatively elects otherwise." Final IRS regulations for this type of plan feature were issued in 2009 and inclusion of this arrangement in 401(k) plans is increasing in popularity.
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Featured Client
- Southdale Pediatrics Associates, LTD.
Southdale Pediatric Associates, Ltd. is an independent physician practice with offices in Edina, Eden Prairie and Burnsville. We provide comprehensive, child centered care, from birth through the age of 21.
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Brain Teaser
Tom owns 100% of his business and is considering hiring some family members to help. He will pay them each $25,000 per year. Which of the following will be considered Highly Compensated Employees for plan purposes? More than one answer may apply.
a) His son, Tom Jr.
b) His step daughter (not legally adopted by Tom)
c) His cousin, Vinny
d) His wife, Sue
e) His grandson, Tom III
f) His grandmother, Mary
g) His brother, Jerry
LAST ISSUES BRAIN TEASER
Joan Harris is the Loan Administrator for the Sterling Cooper 401(k) Plan. One of the plan participants, Don Draper, was recently injured in a car accident. He is on an approved medical leave of absence while recovering from his injuries. During this leave, Don will not be receiving wages from his employer or elsewhere. He has an outstanding 401(k) loan and would like to stop making repayments during his leave.
Is Joan able to approve the suspension of Don's loan repayments?
Yes
Bonus: What are Don's options for making up the payments upon his return to work?
When the leave has ended, the missed payments can be re-amortized over the remaining term of the loan or added to the final payment.
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