TRA MAKES NEWS HAPPEN

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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
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  A Recipe for a Hearty Investment Policy Statement

  April 29, 2025 - Discover the key ingredients for crafting a successful Investment Policy Statement (IPS) for your retirement plan. Learn about defining plan objectives, roles and responsibilities, eligible investments, performance monitoring, qualified default investment alternatives, and the importance of periodic reviews and amendments. Ensure your IPS aligns with fiduciary best practices and supports diverse investment options for your employees. Continue
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  CASE OF THE WEEK – Valuing Life Insurance

  April 25, 2025 - Discover how participants must report the fair market value of a life insurance policy distributed by a 401(k) plan as income, and how IRS safe harbor valuation methods in Rev. Proc. 2005-25 offer plan sponsors assurance against IRS challenges. Continue
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  Plan Sponsors Ask…

  April 22, 2025 - Explore new financial wellness focus areas for 2025, including enhanced preretiree education and planning programs. Learn about personalized retirement income projections, Social Security and Medicare education, budgeting, tax planning, and additional savings opportunities starting at age 50+. Continue
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  CASE OF THE WEEK – Embezzlement – Are Plan Assets Safe

  April 18, 2025 - A business owner’s former employee embezzled funds. Can the 401(k) plan balance of the terminated employee be used to offset the losses? Generally, no, due to ERISA's anti-alienation provisions, though there are a few exceptions such as QDROs, IRS tax levies, federal court garnishments, and liabilities linked to the participant’s misconduct with the plan. Continue
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  New White Paper Explores Life, Longevity and Retirement for Future Workers

  April 15, 2025 - Discover insights into Generation Beta's future from Prudential's white paper. Learn about their anticipated technological integration, evolving family structures, extended life spans, and the redefined concepts of work and retirement. Explore how plan sponsors can help this generation achieve positive retirement outcomes amidst rapid changes. Continue
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  CASE OF THE WEEK – Fidelity Bond vs Fiduciary Liability

  April 11, 2025 - ERISA fidelity bonds and fiduciary liability insurance are two distinct coverage plans. An ERISA fidelity bond is required by law; fiduciary liability insurance is optional, but potentially a prudent safety net. Continue
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  Plan Sponsors Ask…

  April 8, 2025 - Learn how often you should benchmark your 401(k) plan fees. Discover insights from Callan’s 2024 DC Trends Survey and understand the importance of conducting an annual fee study to ensure your plan remains cost-effective and compliant with fiduciary responsibilities. Continue
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  CASE OF THE WEEK – HCE Compensation

  April 4, 2025 - For calendar year plans, the IRS posts the 2025 HCE dollar threshold to be used in 2026 testing. Employees with compensation over $160,000 in 2025 are considered HCEs for 2026. Check the chart for detailed employer plan limits for 2025 and 2024. Understand the importance of HCE determination for nondiscrimination tests like the ADP test, based on ownership and compensation criteria. Continue
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  CASE OF THE WEEK – Retroactive First Year 401(k) Plan Deferrals of Sole Proprietors

  March 28, 2025 - Discover the deadline for sole proprietors to establish and contribute to a new 401(k) plan for 2024. Learn about SECURE Act 2.0 provisions allowing retroactive employee salary deferrals and the requirements for eligibility. Continue