Blog

The IRS and Treasury Department have released new guidelines to help people understand when they can take money from their retirement accounts early, but without paying an extra 10% tax. These exceptions apply to situations like personal emergencies and domestic abuse.  

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In order to maintain the qualified status of your Plan, your company must adopt certain amendments required by the Internal Revenue Service (IRS) to ensure your Plan continues to comply with all current laws. To adopt the appropriate amendments, the IRS requires that you adopt a new version of your Plan document, called a “Plan restatement.” To assist you with this restatement process, we will update your Plan Document as required by the IRS.

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Clarifying the unique relationship between a cash balance and defined benefit plan

A Cash Balance Plan is a type of defined benefit plan that defines the benefit in terms that are more characteristic of a defined contribution plan, such as 401k. A cash balance plan defines the promised benefit in terms of a stated account balance.

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In the year 2019, congress passed the SECURE Act, one of the many changes that allowed long-term, part-time (LTPT) employees to join 401(k) plans starting January 1, 2024.

Under this long-term, part-time employee rule, part-time employees who work at least five hundred hours, during three consecutive 12-month periods, must be eligible to participate in the plan for purposes of elective deferrals (employee funds only). The 12-month period began as of January 1, 2021, however the first time an employee could become eligible under this rule is January 1, 2024.

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This On Deck Session with Michael Gorelick, our own President and Senior Pension Consultant here at Benefit Equity Inc., is filled with important information that has established BEI as the go-to Third Party Administrator.

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