TRA MAKES NEWS HAPPEN

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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
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  Case of the Week – Terminated Participants Fees

  May 2, 2025 - Discover whether a retirement plan can charge fees to terminated participants while exempting active participants. This article explores the critical role of plan documents, compliance with Department of Labor (DOL) and IRS guidelines, and the importance of prudent, reasonable, and nondiscriminatory expense allocation methods. Ensure your plan's fee structure aligns with regulatory standards and fiduciary responsibilities. Continue