What Is Changing? 401(k) plans no longer can have a service condition that prevents an employee from making 401(k) salary deferrals if they have worked for your company at least 500 hours for 3 consecutive years. Example: Your 401(k) plan requires employees to complete a year of service (1,000 hours) before they are eligible to… [keep reading…]
Tag: 401(k) plan
Additional Best Practices for Establishing a 401(k) Plan
As a follow-up to our article on August 19, 2022, we continue to look at best practices for establishing a 401(k) Plan. It is a great benefit for employees but employers must be aware of their fiduciary responsibilities. To ensure your Plan is compliant and running well, consider the following end of year items. Annual… [keep reading…]
Best Practices for Establishing a 401(k) Plan
Establishing a 401(k) Plan for your employees is a great benefit, but employers must be aware of their fiduciary responsibilities. To ensure your Plan is compliant and running well, consider the following best practices. Plan document review Every six years the Internal Revenue Service requires that Plan Documents be restated to properly reflect changes that… [keep reading…]
The Department Of Labor Guidance On Locating Missing Participants
The Department of Labor (DOL) issued guidance and best practices on January 12, 2021 to pension plans in hopes that Plan Sponsors can locate missing participants. The guidance provides various communication strategies and ways to search for missing participants. The end goal is to have zero missing plan participants, which may be difficult to accomplish,… [keep reading…]