• CASE OF THE WEEK – Retirement Proposals in the 2024 U.S. Budget
    May 26, 2023 - When the President took office, America faced acute and historic challenges: a once-in-a-century pandemic; an economy gripped by the most severe downturn since the Great Depression; a worsening climate crisis; and a legacy of racial injustice. From the first days of his Administration, the President moved swiftly to tackle these challenges, deliver results for the American people, and ensure the Nation emerged stronger than ever. Two years later, while significant challenges remain, America has made historic progress under the President’s leadership. Continue
  • CASE OF THE WEEK – What are PS 58 Costs in my 401(k) Plan?
    May 19, 2023 - If the plan uses deductible employer contributions to purchase life insurance for a participant, then the cost of the protection (PS 58 cost) is reported on Form 1099-R. The participant must include the amount in taxable income for the year the premium is paid. Continue
  • Plan Sponsors Ask…
    May 16, 2023 - Our company has been growing rapidly over the past two years, creating many current and near-future ground floor opportunities for younger, less-experienced workers. In discussing the benefits of our retirement plan, what do we need to know about the attitudes and views these younger workers have about saving for retirement? Continue
  • CASE OF THE WEEK – Partial Plan Termination and the Applicable Period
    May 12, 2023 - Based on facts and circumstances over the applicable period, a company could be deemed to have a partial plan termination. The participants affected by the partial plan termination must become 100 percent vested in their account balances upon termination. Plan sponsors should monitor their companies’ turnover rates and amendment activities to be aware of potential partial plan terminations. Continue
  • Mistakes Happen
    May 9, 2023 - As a plan sponsor, at some point you are likely to discover that a plan failure or error has occurred — especially after the plan testing season concludes. Mistakes do happen and you won’t be alone. A recent report published by the American Society of Pension Professionals and Actuaries (ASPAA) studied over 3,200 small business plans1 and found that nearly half of them failed the top-heavy test. Continue
  • Plan Sponsors Ask…
    May 2, 2023 - Our plan committee, with the help of our plan advisor, is considering reducing the number of investment options available to our employees. We currently have 27 investment options — how does that compare with industry averages? Continue
  • CASE OF THE WEEK – 401(k) and 403(b) MEPs
    April 28, 2023 - While the law permits both 403(b) MEPs and 401(k) MEPs, it is not possible to have one MEP that covers both types of plans. The IRS treats 403(b)s and 401(k)s as unlike plans and, therefore, incompatible, for the purpose of plan-to-plan transfers or mergers. Continue
  • Welcome to the Automatic Age
    April 25, 2023 - Section 101 of SECURE Act 2.0 requires new 401(k) and 403(b) plans to automatically enroll participants, with the initial automatic enrollment amount being at least 3% but not more than 10%. Each year, that amount must be automatically increased by 1% until it reaches at least 10%, but not more than 15%.1 However, plans that existed on or prior to the December 29, 2022, signing of the SECURE Act do not have to follow this new provision — they were grandfathered in. Continue
  • CASE OF THE WEEK – Do Roth Recharacterizations Still Exist?
    April 21, 2023 - Recharacterizations still exist, but only to treat a regular annual contribution made to a Roth IRA or to a traditional IRA as having been made to the other type of IRA. Continue
  • Plan Sponsors Ask…
    April 18, 2023 - Data from our recent annual plan review suggests that our retirement plan communication and education efforts with our employees need to greatly improve. Any tips on where to start? Continue

Consider TRA's 3(16) Fiduciary Services & Plan Administration

To alleviate the day-to-day administrative burdens of yours or your clients retirement plans.