Record retention is an often overlooked part of running an employee benefit plan. Benefit plans must adhere to record retention requirements mandated by ERISA, IRS, DOL and other federal and state authorities. However, record retention is as much about what you should retain and for how long as it is about what you should discard…
Endowments Of Not-For-Profit Organizations FASB codification 958-205-65-1, formally FASB Staff Position 117-1, provides guidance on the net asset classification of donor-restricted endowment funds for organizations that are subject to UPMIFA and enhanced disclosures relating to endowment funds whether or not the organization is subject to UPMIFA. Not-for-profit organizations that are subject to an enacted version…
The Journal Fall 2011 My Home Is In Foreclosure, and I Have A $100,000 Capital Gain!?! By Eric Wilson A common misconception concerning properties in foreclosure is that the homeowner or investor being foreclosed upon will not suffer any tax ramifications. How could someone who is unable to make mortgage payments have taxable income after…
Plan Fiduciaries: Don’t Crash and Burn With Your TDF Glidepath Email Dave Business owners and other fiduciaries involved in company-sponsored retirement plans, like a 401(k) plan, have all the elements of personal risk associated with being a fiduciary. Many plan sponsors have put in place target date funds (TDFs) in order to address some of…
Eight Tips for Taxpayers Who Receive an IRS Notice IRS Summertime Tax Tip 2011-22, August 24, 2011 Every year the Internal Revenue Service sends millions of letters and notices to taxpayers, but that doesn’t mean you need to worry. Here are eight things every taxpayer should know about IRS notices–just in case one shows up…
A cash balance plan is a special type defined benefit plans that guarantee participants earnings at a specified rate. This type of plan can offer an attractive alternative to a traditional defined benefit plan. The following offers a brief overview of some of the benefits of cash balance plans. Cash Balance Plan – Participant Perspective…
Historically, participant loans in a defined contribution plan have been classified as plan investments and have been subject to the fair value measurement and disclosure requirements of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820 Fair Value Measurements and Disclosures. This required the plan sponsor to calculate the fair values of the participant…
PBGC Insurance Quick Facts The Pension Benefit Guarantee Corp. (PBGC) provides insurance for defined benefit pension plans. This insurance helps protect participants from losing their accrued benefits if the plan is terminated and not fully funded at the time of termination. The PBGC will pay benefits as of the plan’s termination date, up to a…
Plan Forfeitures Forfeitures in a defined contribution plan arise when participants leave or are terminated from employment prior to becoming fully vested in the employer contributions made on their behalf. Forfeitures are considered assets to the plan, and the plan document states the appropriate ways in which the forfeitures can be used by the…
Participants’ Requests For Plan Documents Employers who administer their own plans (frequently through their human resources departments) may receive requests for plan-related documents from employees (or their participating family members). When an employee makes such a request in writing, the employer is required by ERISA to furnish within 30 days of the request, the current…