TRA MAKES NEWS HAPPEN

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  CASE OF THE WEEK – Faulty Form 5500 Filings and “Reasonable Cause”

  March 31, 2023 - Even in situations where the DFVCP can no longer be used because the plan sponsor has already received a DOL notice regarding a faulty Form 5500 filing, there still may be ways to lessen the penalty assessment by utilizing the reasonable cause argument. Continue
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  ASK THE EXPERTS – Jeff Thornton, Senior Actuary

  March 30, 2023 - Jeff Thornton is a Senior Actuary at The Retirement Advantage, Inc. TRA. He has 18 years of experience in cash balance plans, financial accounting, nondiscrimination and coverage testing, plan design and government reporting. In this article, Jeff talks about nondiscrimination testing in defined benefit plans. Continue
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  CASE OF THE WEEK – The New Way to Count Participants for Form 5500 Audits

  March 24, 2023 - The Form 5500 filing regulations, among other things, change the method of counting participants for purposes of determining when a defined contribution plan must file as a small plan, which also factors into whether the plan may be exempt from the IQPA audit requirement. Specifically, for 2023 and later plan years, plans are directed to count only the number of participants/beneficiaries with account balances as of the beginning of the plan year, as compared to the current rule that counts all the employees eligible to participate in the plan. Continue
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  CASE OF THE WEEK – Distributions Affect Saver’s Tax Credit

  March 17, 2023 - Every deduction and tax credit counts these days. Many IRA owners and plan participants may be unaware of the retirement plan-related tax credits for which they may qualify. Seeking qualified tax advice is essential to ensure accurate calculations. Continue
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  CASE OF THE WEEK – A SIMPLE Switch

  March 10, 2023 - For 2023, switching from a SIMPLE IRA plan to another plan type mid-year is problematic, and may involve an IRS VCP filing (with fees). SECURE 2.0 provides relief for 2024 and later years for this scenario when adopting an eligible 401(k) replacement plan. Continue
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  CASE OF THE WEEK – Plan Establishment Deadline

  March 3, 2023 - From a timing perspective, both SECURE 1.0 and 2.0 have made it easier for business owners to set up retirement plans. This is in keeping with Congress’s goal to facilitate plan establishment with the end result being increasing employee coverage by workplace retirement plans. Continue