TRA MAKES NEWS HAPPEN

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  CASE OF THE WEEK – Mid-Year Changes to Compensation in a Safe Harbor Plan

  July 3, 2025 - Written By Jenny Kiffmeyer, J.D – The Retirement Learning Center “I have a client who operates a 401(k) safe harbor plan with a nonelective safe harbor contribution. Can the owner change the definition of compensation mid-year to remove bonuses from eligible compensation and have the plan remain a safe harbor plan if they provide a 30-day notice of the change and only apply the amended... Continue
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  CASE OF THE WEEK – Hierarchy of Pay Deductions

  June 27, 2025 - If an employer does not have a policy regarding the hierarchy of payroll withholdings, a best practice is to put one in place with the help of a tax advisor and apply it consistently. Continue
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  CASE OF THE WEEK – Sole Proprietor and PT

  June 20, 2025 - Learn about the implications of prohibited transactions (PTs) for sole proprietors with solo 401(k) plans. Understand how ERISA Titles I and II apply, the tax penalties under IRC §4975, and the necessary IRS reporting. Continue
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  CASE OF THE WEEK – Nonresident Aliens (NRAs)

  June 13, 2025 - Including NRAs with U.S. source compensation in a U.S. retirement plan is necessary, despite an NRA exclusion. Statutory exclusions allow excluding certain employees without affecting nondiscrimination testing. However, plans must cover NRAs with U.S. source income to avoid disqualification. Continue
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  CASE OF THE WEEK – What Constitutes a Termination of Employment?

  June 6, 2025 - Discover key insights from the Mauer v. Pension Committee of the NBA Referees case on what constitutes a termination of employment. Learn how courts determine eligibility for plan distributions when an employment relationship is severed, regardless of ongoing litigation or potential reinstatement. Continue
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  CASE OF THE WEEK – Missing Participants and RMDs

  May 30, 2025 - Ensure compliance and protect your 401(k) plan's tax-qualified status by addressing RMD operational failures. If participants or beneficiaries are missing, follow IRS guidance: search plan records, use locator services, and attempt contact via certified mail. Note: IRS memo guidelines do not cover other qualification requirements or ERISA laws. Continue
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  CASE OF THE WEEK – QSLOB

  May 23, 2025 - Learn how the Qualified Separate Line of Business (QSLOB) rules can assist a plan in meeting minimum coverage requirements. Defined contribution plans must cover a minimum number of employees to remain qualified for favorable IRS tax treatment, as outlined in Treasury Regulation Section 1.410(b)-1. Typically, all employees of a single employer are considered when applying these requirements. However, by adhering to the QSLOB rules in Treas. Reg. §1.414(r)-8, employers with QSLOBs can apply the minimum coverage criteria separately for each QSLOB, potentially simplifying compliance with IRS testing. Continue
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  CASE OF THE WEEK – Contract Employee

  May 16, 2025 - Allowing independent contractors to participate in a company's 401(k) plan can turn it into a Multiple Employer Plan (MEP), which involves specific regulations. Ensure compliance with IRS rules and seek ERISA counsel to avoid potential issues. Continue
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  CASE OF THE WEEK – Reducing or Suspending 401(k) Safe Harbor Contributions Mid-Year

  May 9, 2025 - Sponsors of 401(k) or 403(b) safe harbor plans can amend the plan mid-year to reduce or suspend safe harbor contributions if facing economic loss or if the initial notice stated this possibility. Proper supplemental notice and procedural requirements must be followed. Continue
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  Plan Sponsors Ask…

  May 6, 2025 - Learn about the potential of health savings accounts (HSAs) as a long-term savings vehicle for future healthcare expenses in retirement. Discover key data from Bank of America’s Q3 2024 Participant Pulse, including investment trends among different demographics and the benefits of HSAs' triple tax-free status. Promote HSAs effectively to your employees and support their retirement planning. Continue