Most large retirement plans don’t worry about the maximum pension deduction limit because the plan benefits (and related contributions) are often well below the IRS limits. However, small- and medium-sized retirement plans can unknowingly run into the limits. This post summarizes important deduction pitfalls to be aware of. Self-employment “earned income” limit [§404(a)(8)]. For self-employed […]Read More… from Common Retirement Plan Deduction Pitfalls
The IRS finally released the 2009 Form 8955-SSA used for reporting participants with deferred vested pension benefits. They also extended the deadline for the 2009 and 2010 filings from August 1, 2011 to January 17, 2012. Here are links to: 2009 Form 8955-SSA (fill-in the box version) Instructions for Form 8955-SSA Employee Plans News with […]Read More… from IRS Releases 2009 Form 8955-SSA and Extends Filing Due Date
The 2010 Form 5500-EZ (with instructions) is now available for “one-participant” retirement plans. Sponsors and practitioners have waited months for the release of these forms. The filing deadline is July 31, 2011 (without extensions) for calendar year plans, or 2 1/2 months later with extensions. The documents are available here: 2010 Form 5500-EZ 2010 Form […]Read More… from Better Late Than Never: IRS Releases 2010 Form 5500-EZ
During the plan termination process, one issue often overlooked is the consequences of investment risk prior to paying out benefits. This can lead to disastrous results. Benefits may be fully-funded when the termination decision is made, but significant contributions will be required if assets are not invested conservatively and a market downturn occurs prior to […]Read More… from Pension Plan Termination Investment Strategies
Many small pension plans are exempt from PBGC pension insurance coverage. These include “substantial owner” plans, where all participants in the plan own (directly or indirectly) more than 10% of the corporation’s stock. This post highlights what happens when the classification of a “substantial owner” plan changes, and what happens next. We often see “substantial […]Read More… from When Small Pension Plans Move In and Out of PBGC Coverage
The IRS recently released a draft version of the new Form 8955-SSA. We’ve been reporting in previous posts about the new Form 8955-SSA filing requirements and additional details provided by the IRS. Now, they’ve lifted the veil on what the form will actually look like. Here are a couple of quick observations of what’s changed […]Read More… from IRS Lifts the Veil on New Form 8955-SSA
If your 401(k) plan is failing the Actual Deferral Percentage (ADP) test, then it’s time to consider some plan design changes. You need to figure out a way to encourage non-highly compensated employees (NHCEs) to save more retirement money in their 401(k) accounts while keeping benefit costs under control. This post will guide plan sponsors […]Read More… from Strategic 401(k) Design: Preventing ADP Failures
In Announcement 2011-21, the IRS released details regarding filing requirements for the new Form 8955-SSA, which will be used to report participants with deferred vested benefits from an employer-sponsored retirement plan. For calendar year plans, the 2009 8955-SSA due date (without extension) will generally be August 1, 2011. As mentioned in our earlier post on […]Read More… from IRS Unveils Details of New Form 8955-SSA
The proposed 2012 federal budget contains an interesting provision which could dramatically change how PBGC premiums are determined. Here are the main aspects of the proposal: – Gives the PBGC authority to set and adjust premium rates as it sees fit. Currently the PBGC does not have this power, so the change would give the […]Read More… from Proposed Changes to PBGC Premiums
The DOL recently announced an extension of the deadline for service providers to comply with Section 408(b)(2) regulations. These rules govern the disclosure of fees charged to qualified retirement plans (e.g., 401(k) and defined benefit pension plans). Disclosures were originally required by July 16, 2011, which has now been extended to January 1, 2012. The […]Read More… from Extension of Retirement Plan Fee Disclosure Deadline
