The Setting Every Community Up for Retirement Enhancement Act (SECURE Act) signed into law on December 20, 2019 contains a provision that gives businesses extra time to establish certain new tax-qualified...
Read moreDisclosure & Reasonableness of Actuarial Assumptions in DB and CB Plans
Actuarial equivalent means that the present value of the total amounts expected to be received under two different forms of payment are equal, based on mortality and interest assumptions specified under the pension plan.a plan is permitted to use alternative actuarial assumptions as long as they are reasonable.
Feb 19, 2019
A number of class-action lawsuits are currently testing actuarial equivalents in pension plans. This important issue may be resolved in the circuit courts or go all the way up to the...
Read moreAre Traditional Defined Benefit Plans Coming Back as Variable Annuity Pension Plans?
The Variable Annuity Pension Plan in combination with a 401(k) Profit Sharing Plan may be the answer to a more secure retirement.
Sep 05, 2017
Plan sponsors have moved away from the Traditional Defined Benefit (DB) Plan because of the cost and risks in maintaining these plans. What is a Traditional Defined Plan? A Traditional Defined...
Read moreSupreme Court Rules in Favor of the Hospitals that claimed Church Plan Status and ERISA Exemption
The Supreme Court rules that church hospital plans are exempt from ERISA requirements.
Jun 13, 2017
ERISA was enacted in 1974 to protect workers’ benefits in both pension plans and welfare plans, but that protection comes with many requirements. Church plans, however, are exempt from Titles I...
Read moreIs Your Defined Benefit/Cash Balance Plan Really Covered by the Pension Benefit Guaranty Corporation (PBGC)?
Certain Defined Benefit plans are exempt from PBGC coverage such as Professional Service Employers that have 25 or fewer participants.
Apr 25, 2017
The fact that premiums are paid to the PBGC does not determine coverage status! The PBGC is a government corporation, which insures benefits in DB plans when the plan assets are...
Read moreTraditional Defined Benefit Plan or Cash Balance Plan – A Buy Out Tool
Traditional Defined Benefit Plan or Cash Balance Plan-A Buy Out Tools can be used to optimize a business sale to younger owners.
Mar 28, 2017
Are you ready to sell your business? Do you prefer to sell the company to your younger owner(s)? Are you interested in structuring the sale so that it is tax efficient...
Read morePenalty Relief Program for Late Filing of Form 5500-EZ
Form 5500-EZ returns are used only by plan administrators and plan sponsors of retirement plans that are not subject to the reporting requirements of Title I of ERISA and hence are used to satisfy only the reporting requirements of the Internal Revenue Code.
Jun 16, 2015
Form 5500-EZ returns are used only by plan administrators and plan sponsors of retirement plans that are not subject to the reporting requirements of Title I of ERISA and hence are...
Read moreIs Your Church Plan Established and Maintained by a Church?
ERISA was enacted in 1974 to protect workers’ benefits in both pension plans and welfare plans, but that protection comes with many requirements.
Aug 04, 2014
ERISA was enacted in 1974 to protect workers’ benefits in both pension plans and welfare plans, but that protection comes with many requirements. Church plans, however, are exempt from Titles I and...
Read moreDid You Know…You May be Eligible for Double Maximum Pension Tax Deductible Contributions?
Read this article to find out if you may be eligible for double maximum tax deductible contributions!
Jun 28, 2014
A business owner can accumulate about $2,600,000 in a traditional defined benefit or cash balance plan. To illustrate these results, let us assume that the company owner is age 52 and is...
Read moreTraditional Defined Benefit Plan or Cash Balance Plan, Which is The Best Way to Go?
There are two general types of pension plans: defined benefit plans and defined contribution plans. Which is the best way to go?
Mar 18, 2014
There are two general types of pension plans: defined benefit plans and defined contribution plans. Defined benefit (DB) plans provide a specific benefit at retirement for each eligible employee, while defined...
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