Employers sponsoring 401(k) plans may be suffering difficulties funding their matching contributions during these trying economic times. To provide relief, the IRS allows an employer experiencing a “substantial business hardship” to discontinue their matching contributions. For purposes of determining whether an employer is facing a significant business hardship under section 412(c), the factors taken into […]
Employers are facing many challenges due to the recent spread of COVID-19. If you have had to reduce your workforce as a result of the financial impact of the virus, there may be repercussions that affect your retirement plan. Your plan may have experienced a partial plan termination as a result of one downsizing or […]
On March 18, 2020 the Coronavirus relief package was signed into law. Titled the “Families First Coronavirus Response Act”, the act has created a temporary sick paid leave program and a temporary expansion to family/medical leave act. The law goes into effect April 2, 2020 and is effective until December 31, 2020. The law requires […]
Last week the Indiana Department of Workforce Development (IDWD) issued a press release regarding their assistance to employers during this time. IDWD is asking employers who need to temporarily close or reduce employee hours to encourage their employees to apply for unemployment benefits, which must be done online. For employees without online access, IDWD is […]
On September 23, 2019, the IRS published final regulations for hardship distributions for both 401(k) and 403(b) plans. The new rules relax existing restrictions on taking hardship distributions from defined contribution plans. The Final Regulations make the following mandatory and optional changes to the hardship distribution requirements. Mandatory Changes Elimination of the Six Month Contribution Suspension […]
The Social Security Administration announced that the 2019 social security wage base for calculating the social security tax (OASDI) will increase to $132,900, up from $128,400 for 2018. For 2019, individuals who participate in 401(k), 403(b), and most 457 retirement plans will be able to contribute $19,000, up from $18,500 for 2018. The additional catch-up […]
The Internal Revenue Service announced the cost-of-living adjustments (COLA) for tax year 2016, that apply to dollar limits for 401(k) and other retirement plans. Most of the plan limits will remain unchanged as the increase in the Consumer Price Index did not meet the statutory thresholds for that trigger rate adjustments. The announcement highlighted the […]
Generally, if someone with retirement assets takes a cash distribution from their retirement and they have not reached retirement age, or at least age 59 ½, they must pay a tax penalty of 10% to the IRS. This penalty is basically a slap on the wrist for using retirement funds prior to retirement. There are […]
By Stacey Spencer, QKA | Manager, Employee Benefits Group and Tim Ayler, CPA | Partner, Team Member of the Employee Benefits Group On April 4, 2014, the IRS issued Notice 2014-19 which responded to several questions lingering about how qualified retirement plans should apply the United States Supreme Court case State v. Windsor which stuck […]
By Larry Greenwalt, CPA, Chairman of the Board and Marie Jett, CPA, Manager, Tax Services Group Problems with the health care exchange, a delay in the effective date of certain provisions, and a myriad of rules have contributed to confusion about individual and organization responsibilities for having/providing health insurance. INDIVIDUALS Effective January 1, 2014, substantially […]