Blog

Withdraw from Your 401(k) at Age 55

How to access your 401(k) funds for early retirement.
Scott M Dufek, CPA | 01/18/2019


What is a 3(16), 3(21), or 3(38) Fiduciary?

Don't feel overwhelmed by the terms and technical jargon surrounding your 401(k) plan fiduciary responsibilities. This article will provide you with a working knowledge of some of the terms you are likely to encounter.
Scott M Dufek, CPA | 11/09/2018


Frequent 401(k) Audit Finding Series - Use of Forfeitures

Forfeitures of employer contributions arising in a 401(k) plan can be used in one of three ways (as outlined in the Plan's adoption agreement).
Scott M Dufek, CPA | 08/29/2018


Frequent 401(k) Audit Finding Series - Hardship Distributions

As a Plan Sponsor, your ears should perk up when you hear "hardship distribution". This article discusses some common failures we see during our audits...
Scott M Dufek, CPA | 07/09/2018


Frequent 401(k) Audit Finding Series - Late Remittances

The latest post from our 401(k) audit finding series discusses how the Department of Labor ("DOL") defines late remittances of employee contributions and outlines the corrective action needed.
Scott M Dufek, CPA | 05/11/2018


Frequent 401(k) Audit Finding Series - Failure to Remit All Contributions

A critical responsibility of 401(k) plan sponsors is to remit all employee contributions to the trust.
Scott M Dufek, CPA | 03/19/2018


Frequent 401(k) Audit Finding Series - Definition of Compensation Failures

One of the more common 401(k) audit failures - definition of compensation - discussed.
Scott M Dufek, CPA | 01/28/2018


What Expenses Can Be Paid From Our 401(k) Plan?

Many fees related to the administration of your 401(k) Plan can be paid utilizing Plan assets.
Scott M Dufek, CPA | 05/28/2017


Full scope vs limited-scope audits

What is a limited scope 401(k) audit and how does it differ from a full scope audit?
Scott M Dufek, CPA | 06/26/2016


401(k) Administrative Fees - Impact of an ERISA Expense Account

An ERISA Expense Account are plan level accounts established to hold excess revenue that can be used to pay eligible plan expenses.
Scott M Dufek, CPA | 04/13/2016


401(k) Match True-Up Explained

An explanation of what is meant by a match true-up and an example showing how the true-up works.
Scott M Dufek, CPA | 03/08/2016


Form 5500 Due Date

After two recent changes in the IRS Form 5500 deadline, we are back to where we started.
Scott M Dufek, CPA | 12/21/2015


Dual Role Service Providers and Conflicts of Interest

When company administering 401(k) plan selects investments is there a conflict of interest?
Scott M Dufek, CPA | 08/19/2015


401(k) Automatic Enrollment - New IRS Correction Methods

New 2015 guidance by the IRS alters the corrective action needed by plan sponsors when correcting errors related to 401(k) auto enrollment.
Scott M Dufek, CPA | 05/01/2015


401(k) Auto Enrollment - Unforeseen Admin Costs Attributable to Small Account Balances

One of the unintended bi-products of adding auto enrollment to your company 401(k) plan can be the unwanted buildup of small account balances. These balances can increase your administrative burdens and drive up the costs to run the Plan.
Scott M Dufek, CPA | 03/19/2015


401(k) Automatic Enrollment - Things to Consider

401(K) Auto Enrollment can lead to unintended consequences. Proper thought and planning can eliminate unwanted surprises.
Scott M Dufek, CPA | 02/05/2015


401(k) Re-enrollment?

A new trend is to reallocate 401(k) participant investments into new funds (usually target-date funds) through a process known as re-enrollment.
Scott M Dufek, CPA | 01/09/2015


2015 Contribution Limits

In late October, the IRS announced the limitations for contributions on retirement plans.
Scott M Dufek, CPA | 12/13/2014


401(k) Balances at Record Highs

New data shows that 401(k) balances are at all time highs. The news is not all good...
Scott M Dufek, CPA | 04/17/2014


401(k) Plan Problems Identified Under DOL Scrutiny

Forbes recently identified some troubling statistics relating to the administration of 401(k) plans.
Scott M Dufek, CPA | 02/15/2014


2014 Contribution Limits

IRS 2014 Contribution Limits
Scott M Dufek, CPA | 11/01/2013


401(k) Audit Nondiscrimination Testing - Part Three

The third in a series of blog postings that discusses required coverage and non-discrimination testing that a 401(k) Plan must undergo
Scott M Dufek, CPA | 08/17/2013


401(k) Audit Nondiscrimination Testing - Part Two

The second in a series of blog postings that will define some common terms and explain the required annual testing your plan must undergo.
Scott M Dufek, CPA | 07/09/2013


401(k) Audit Nondiscrimination Testing - Part One

The first in a series of blog postings that will define some common terms and explain the required annual testing your plan must undergo.
Scott M Dufek, CPA | 06/22/2013


Impact of Recently Enacted Fee Disclosures

Newly required fee disclosures have little impact on 401(k) participant behavior.
Scott M Dufek, CPA | 04/17/2013


One of Three Workers in Financial Distress?

Recent reports suggest that one out of every three workers is tapping into their 401(k) savings via hardship distributions.
Scott M Dufek, CPA | 03/18/2013


Salary Deferrals and Annual Compensation Limits

Below is a short article to help you understand the appropriate time to suspend your employee's 401(k) deferrals.
Scott M Dufek, CPA | 02/23/2013


401(k) Plan Short Comings...

November 2012 MarketWatch article discussing why a 401(k) plan may not be achieving the desired results.
Scott M Dufek, CPA | 11/19/2012


IRS announces 2013 dollar limitations

Contribution limits for 2013 retirement plans.
Scott M Dufek, CPA | 10/31/2012


Hardship Distributions = "Red Alert"

Few transactions offer more potential for the Plan Administrator to fail than a hardship distribution. Education and vigilance are the keys to navigating the process.
Scott M Dufek, CPA | 07/14/2012


Fee Disclosures - 3 Month Extension

On February 2, 2012, the DOL released the final ruling on Section 408(b)(2) fee disclosures resulting in yet another extension of the effective date...
Scott M Dufek, CPA | 02/03/2012


ASPPA Requests Fee Disclosure Extension

As the deadline for ERISA Section 408(b)(2) and 404(a) regulations nears, industry leaders are asking for more time.
Scott M Dufek, CPA | 01/08/2012


2012 - Cost of Living Adjustments

Retirement plan contribution limits for 2012 have been announced...
Scott M Dufek, CPA | 11/29/2011


Fee disclosures officially delayed

The Department of Labor has officially moved the deadline for compliance on fee disclosures.
Scott M Dufek, CPA | 07/23/2011


Participant Statement Fee Disclosure Update

Changes are coming to the statements participants in your 401(k) plan receive on a quarterly basis. Disclosures of fees deducted from participant accounts will be shown on the face of the statement. The level of detail and the timing of the implementation remain undecided...
Scott M Dufek, CPA | 07/02/2011


Participant Loan Bill Moving Through Senate

Senate bill seeks to make changes to current regulations governing participant loans.
Scott M Dufek, CPA | 06/05/2011


Investment Policy Statement

A well written investment policy statement can go a long way in demonstrating that you fulfilled your fiduciary duties.
Scott M Dufek, CPA | 03/27/2011


Who Is A Fiduciary?

Being a fiduciary of a 401(k) plan is an important function that comes with a certain level of personal risk.
Scott M Dufek, CPA | 03/01/2011


401k Audit - a Value Added Service?

Do you view your current employee benefit plan audit as a regulatory requirement? When properly planned, an benefit plan audit should provide a value added service.
Scott M Dufek, CPA | 02/16/2011


Participant Loans and Deemed Distributions

Deemed distributions occur when a participant fails to repay a loan from an employee benefit plan - the result is the loan becomes taxable income to the participant.
Scott M Dufek, CPA | 01/07/2011


Accounting Change - Participant Loans

New rules governing the accounting for participant loans by defined contribution plans.
Scott M Dufek, CPA | 09/20/2010


Do I Need a 401(k) Audit?

A 401(k) audit is triggered by the number of eligible participants in your plan. Do you know the threshold?
Scott M Dufek, CPA | 05/05/2010


Defining Compensation

Are you familar with the definition of compensation as it is written in your 401(k) or 403(b) plan? Nearly all calculations from employee deferrals to employer matching are driven by the definition of compensation so you should be...
Nancy C Dufek, CPA | 03/27/2010


Participant Forfeitures

Definition and uses of Participant forfeitures
Scott M Dufek, CPA | 02/21/2010


Correcting Plan Failures

You have identified that your Plan may not be in compliance with your Plan Document (or worse with IRS/DOL regulations) - What do you do now?
Scott M Dufek, CPA | 02/03/2010


Remittance of Participant Deferrals

Department of Labor issues guidance on remitting employee deferrals
Scott M Dufek, CPA | 01/25/2010



Tax Due Dates