5500audit.com RSS Feed https://5500audit.com/ Take a look at our recent blog posts and client newsletter articles. en-us Wed, 01 Sep 2021 09:00:00 -0500 Wed, 01 Sep 2021 09:00:00 -0500 What Is a Designated Roth Account? https://www.5500audit.com/newsletter.php#2 If you are a high-income earner who participates in a 401(k), 403(b), or governmental 457(b) retirement plan that has a designated Roth account, making contributions to that account could be a smart move. Wed, 01 Sep 2021 09:00:00 -0500 https://www.5500audit.com/newsletter.php#2 Verifying Your Identity When Calling the IRS https://www.5500audit.com/newsletter.php#4 If you need to contact the IRS, you will be asked to verify your identity. Here's what you need to know before you call. Wed, 01 Sep 2021 09:00:00 -0500 https://www.5500audit.com/newsletter.php#4 Tax Rules for Divorce and Alimony Payments https://www.5500audit.com/newsletter.php#5 Tax rules regarding divorce and separation can and do change - as they recently did under tax reform - and the last thing on anyone's mind during a divorce or separation is its effect on their tax situation. Wed, 01 Sep 2021 09:00:00 -0500 https://www.5500audit.com/newsletter.php#5 Tax Relief for Those Affected by Natural Disasters https://www.5500audit.com/newsletter.php#1 Tax relief may be available if you've been affected by a natural disaster this year, but only if you meet certain conditions. Wed, 01 Sep 2021 09:00:00 -0500 https://www.5500audit.com/newsletter.php#1 Six Things To Know Before You Start a Business https://www.5500audit.com/newsletter.php#3 Starting your own business is an exciting prospect, but there is more to it than simply writing a business plan. Wed, 01 Sep 2021 09:00:00 -0500 https://www.5500audit.com/newsletter.php#3 Which Educator Expenses Are Tax Deductible? https://www.5500audit.com/newsletter.php#4 Teachers and other educators should remember that they can deduct certain unreimbursed expenses such as classroom supplies, training, and travel on their tax returns to reduce the amount of tax owed. Sun, 01 Aug 2021 09:00:00 -0500 https://www.5500audit.com/newsletter.php#4 Retirement Plan Options for Small Businesses https://www.5500audit.com/newsletter.php#5 Employer-sponsored retirement plans are a key component of retirement savings. If you're like many small business owners in the United States, you may be considering the various retirement plan options available for your company. Sun, 01 Aug 2021 09:00:00 -0500 https://www.5500audit.com/newsletter.php#5 Opting Out of the Monthly Child Tax Credit Payment https://www.5500audit.com/newsletter.php#2 While many families will benefit from the extra money deposited into their bank accounts, some may want to opt out and instead take the Child Tax Credit when they file their tax return next spring. Sun, 01 Aug 2021 09:00:00 -0500 https://www.5500audit.com/newsletter.php#2 Minimizing Capital Gains Tax on Sale of a Home https://www.5500audit.com/newsletter.php#3 Learn how to avoid capital gains tax and why home improvements that qualify for the residential energy property credit can make a difference when selling your home. Sun, 01 Aug 2021 09:00:00 -0500 https://www.5500audit.com/newsletter.php#3 Key Tax Changes Could Affect Your Tax Situation in 2021 https://www.5500audit.com/newsletter.php#1 Key tax provisions in the American Rescue Plan Act of 2021 could affect your tax situation. Here's what you need to know. Sun, 01 Aug 2021 09:00:00 -0500 https://www.5500audit.com/newsletter.php#1 401(k) Service Providers and the Role They Serve https://www.5500audit.com/blog.php?id=50 Discussion of the various service providers involved in the administration of your 401(k) plan. Mon, 03 Feb 2020 09:00:00 -0600 https://www.5500audit.com/blog.php?id=50 Frequent 401(k) Audit Finding Series - Documentation Failures https://www.5500audit.com/blog.php?id=49 Maintaining proper documentation for all areas of your 401(k) Plan is critical to survive audit. Tue, 12 Mar 2019 09:00:00 -0500 https://www.5500audit.com/blog.php?id=49 Withdraw from Your 401(k) at Age 55 https://www.5500audit.com/blog.php?id=48 How to access your 401(k) funds for early retirement. Fri, 18 Jan 2019 09:00:00 -0600 https://www.5500audit.com/blog.php?id=48 What is a 3(16), 3(21), or 3(38) Fiduciary? https://www.5500audit.com/blog.php?id=46 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. Fri, 09 Nov 2018 09:00:00 -0600 https://www.5500audit.com/blog.php?id=46 Frequent 401(k) Audit Finding Series - Use of Forfeitures https://www.5500audit.com/blog.php?id=45 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). Wed, 29 Aug 2018 09:00:00 -0500 https://www.5500audit.com/blog.php?id=45 Frequent 401(k) Audit Finding Series - Hardship Distributions https://www.5500audit.com/blog.php?id=44 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... Mon, 09 Jul 2018 09:00:00 -0500 https://www.5500audit.com/blog.php?id=44 Frequent 401(k) Audit Finding Series - Late Remittances https://www.5500audit.com/blog.php?id=43 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. Fri, 11 May 2018 09:00:00 -0500 https://www.5500audit.com/blog.php?id=43 Frequent 401(k) Audit Finding Series - Failure to Remit All Contributions https://www.5500audit.com/blog.php?id=42 A critical responsibility of 401(k) plan sponsors is to remit all employee contributions to the trust. Mon, 19 Mar 2018 09:00:00 -0500 https://www.5500audit.com/blog.php?id=42 Frequent 401(k) Audit Finding Series - Definition of Compensation Failures https://www.5500audit.com/blog.php?id=41 One of the more common 401(k) audit failures - definition of compensation - discussed. Sun, 28 Jan 2018 09:00:00 -0600 https://www.5500audit.com/blog.php?id=41 What Expenses Can Be Paid From Our 401(k) Plan? https://www.5500audit.com/blog.php?id=40 Many fees related to the administration of your 401(k) Plan can be paid utilizing Plan assets. Sun, 28 May 2017 09:00:00 -0500 https://www.5500audit.com/blog.php?id=40 Full scope vs limited-scope audits https://www.5500audit.com/blog.php?id=39 What is a limited scope 401(k) audit and how does it differ from a full scope audit? Sun, 26 Jun 2016 09:00:00 -0500 https://www.5500audit.com/blog.php?id=39 401(k) Administrative Fees - Impact of an ERISA Expense Account https://www.5500audit.com/blog.php?id=38 An ERISA Expense Account are plan level accounts established to hold excess revenue that can be used to pay eligible plan expenses. Wed, 13 Apr 2016 09:00:00 -0500 https://www.5500audit.com/blog.php?id=38 401(k) Match True-Up Explained https://www.5500audit.com/blog.php?id=37 An explanation of what is meant by a match true-up and an example showing how the true-up works. Tue, 08 Mar 2016 09:00:00 -0600 https://www.5500audit.com/blog.php?id=37 Form 5500 Due Date https://www.5500audit.com/blog.php?id=36 After two recent changes in the IRS Form 5500 deadline, we are back to where we started. Mon, 21 Dec 2015 09:00:00 -0600 https://www.5500audit.com/blog.php?id=36 Dual Role Service Providers and Conflicts of Interest https://www.5500audit.com/blog.php?id=35 When company administering 401(k) plan selects investments is there a conflict of interest? Wed, 19 Aug 2015 09:00:00 -0500 https://www.5500audit.com/blog.php?id=35 401(k) Automatic Enrollment - New IRS Correction Methods https://www.5500audit.com/blog.php?id=34 New 2015 guidance by the IRS alters the corrective action needed by plan sponsors when correcting errors related to 401(k) auto enrollment. Fri, 01 May 2015 09:00:00 -0500 https://www.5500audit.com/blog.php?id=34 401(k) Auto Enrollment - Unforeseen Admin Costs Attributable to Small Account Balances https://www.5500audit.com/blog.php?id=33 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. Thu, 19 Mar 2015 09:00:00 -0500 https://www.5500audit.com/blog.php?id=33 401(k) Automatic Enrollment - Things to Consider https://www.5500audit.com/blog.php?id=32 401(K) Auto Enrollment can lead to unintended consequences. Proper thought and planning can eliminate unwanted surprises. Thu, 05 Feb 2015 09:00:00 -0600 https://www.5500audit.com/blog.php?id=32 401(k) Re-enrollment? https://www.5500audit.com/blog.php?id=31 A new trend is to reallocate 401(k) participant investments into new funds (usually target-date funds) through a process known as re-enrollment. Fri, 09 Jan 2015 09:00:00 -0600 https://www.5500audit.com/blog.php?id=31 2015 Contribution Limits https://www.5500audit.com/blog.php?id=30 In late October, the IRS announced the limitations for contributions on retirement plans. Sat, 13 Dec 2014 09:00:00 -0600 https://www.5500audit.com/blog.php?id=30 401(k) Balances at Record Highs https://www.5500audit.com/blog.php?id=29 New data shows that 401(k) balances are at all time highs. The news is not all good... Thu, 17 Apr 2014 09:00:00 -0500 https://www.5500audit.com/blog.php?id=29 401(k) Plan Problems Identified Under DOL Scrutiny https://www.5500audit.com/blog.php?id=28 Forbes recently identified some troubling statistics relating to the administration of 401(k) plans. Sat, 15 Feb 2014 09:00:00 -0600 https://www.5500audit.com/blog.php?id=28 2014 Contribution Limits https://www.5500audit.com/blog.php?id=27 IRS 2014 Contribution Limits Fri, 01 Nov 2013 09:00:00 -0500 https://www.5500audit.com/blog.php?id=27 401(k) Audit Nondiscrimination Testing - Part Three https://www.5500audit.com/blog.php?id=26 The third in a series of blog postings that discusses required coverage and non-discrimination testing that a 401(k) Plan must undergo Sat, 17 Aug 2013 09:00:00 -0500 https://www.5500audit.com/blog.php?id=26 401(k) Audit Nondiscrimination Testing - Part Two https://www.5500audit.com/blog.php?id=25 The second in a series of blog postings that will define some common terms and explain the required annual testing your plan must undergo. Tue, 09 Jul 2013 09:00:00 -0500 https://www.5500audit.com/blog.php?id=25 401(k) Audit Nondiscrimination Testing - Part One https://www.5500audit.com/blog.php?id=24 The first in a series of blog postings that will define some common terms and explain the required annual testing your plan must undergo. Sat, 22 Jun 2013 09:00:00 -0500 https://www.5500audit.com/blog.php?id=24 Impact of Recently Enacted Fee Disclosures https://www.5500audit.com/blog.php?id=23 Newly required fee disclosures have little impact on 401(k) participant behavior. Wed, 17 Apr 2013 09:00:00 -0500 https://www.5500audit.com/blog.php?id=23 One of Three Workers in Financial Distress? https://www.5500audit.com/blog.php?id=22 Recent reports suggest that one out of every three workers is tapping into their 401(k) savings via hardship distributions. Mon, 18 Mar 2013 09:00:00 -0500 https://www.5500audit.com/blog.php?id=22 Salary Deferrals and Annual Compensation Limits https://www.5500audit.com/blog.php?id=21 Below is a short article to help you understand the appropriate time to suspend your employee's 401(k) deferrals. Sat, 23 Feb 2013 09:00:00 -0600 https://www.5500audit.com/blog.php?id=21 401(k) Plan Short Comings... https://www.5500audit.com/blog.php?id=20 November 2012 MarketWatch article discussing why a 401(k) plan may not be achieving the desired results. Mon, 19 Nov 2012 09:00:00 -0600 https://www.5500audit.com/blog.php?id=20 IRS announces 2013 dollar limitations https://www.5500audit.com/blog.php?id=18 Contribution limits for 2013 retirement plans. Wed, 31 Oct 2012 09:00:00 -0500 https://www.5500audit.com/blog.php?id=18 Hardship Distributions = "Red Alert" https://www.5500audit.com/blog.php?id=17 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. Sat, 14 Jul 2012 09:00:00 -0500 https://www.5500audit.com/blog.php?id=17 Fee Disclosures - 3 Month Extension https://www.5500audit.com/blog.php?id=16 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... Fri, 03 Feb 2012 09:00:00 -0600 https://www.5500audit.com/blog.php?id=16 ASPPA Requests Fee Disclosure Extension https://www.5500audit.com/blog.php?id=15 As the deadline for ERISA Section 408(b)(2) and 404(a) regulations nears, industry leaders are asking for more time. Sun, 08 Jan 2012 09:00:00 -0600 https://www.5500audit.com/blog.php?id=15 2012 - Cost of Living Adjustments https://www.5500audit.com/blog.php?id=14 Retirement plan contribution limits for 2012 have been announced... Tue, 29 Nov 2011 09:00:00 -0600 https://www.5500audit.com/blog.php?id=14 Fee disclosures officially delayed https://www.5500audit.com/blog.php?id=13 The Department of Labor has officially moved the deadline for compliance on fee disclosures. Sat, 23 Jul 2011 09:00:00 -0500 https://www.5500audit.com/blog.php?id=13 Participant Statement Fee Disclosure Update https://www.5500audit.com/blog.php?id=12 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... Sat, 02 Jul 2011 09:00:00 -0500 https://www.5500audit.com/blog.php?id=12 Participant Loan Bill Moving Through Senate https://www.5500audit.com/blog.php?id=11 Senate bill seeks to make changes to current regulations governing participant loans. Sun, 05 Jun 2011 09:00:00 -0500 https://www.5500audit.com/blog.php?id=11 Investment Policy Statement https://www.5500audit.com/blog.php?id=10 A well written investment policy statement can go a long way in demonstrating that you fulfilled your fiduciary duties. Sun, 27 Mar 2011 09:00:00 -0500 https://www.5500audit.com/blog.php?id=10 Who Is A Fiduciary? https://www.5500audit.com/blog.php?id=9 Being a fiduciary of a 401(k) plan is an important function that comes with a certain level of personal risk. Tue, 01 Mar 2011 09:00:00 -0600 https://www.5500audit.com/blog.php?id=9 401k Audit - a Value Added Service? https://www.5500audit.com/blog.php?id=8 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. Wed, 16 Feb 2011 09:00:00 -0600 https://www.5500audit.com/blog.php?id=8 Participant Loans and Deemed Distributions https://www.5500audit.com/blog.php?id=7 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. Fri, 07 Jan 2011 09:00:00 -0600 https://www.5500audit.com/blog.php?id=7 Accounting Change - Participant Loans https://www.5500audit.com/blog.php?id=6 New rules governing the accounting for participant loans by defined contribution plans. Mon, 20 Sep 2010 09:00:00 -0500 https://www.5500audit.com/blog.php?id=6 Do I Need a 401(k) Audit? https://www.5500audit.com/blog.php?id=5 A 401(k) audit is triggered by the number of eligible participants in your plan. Do you know the threshold? Wed, 05 May 2010 09:00:00 -0500 https://www.5500audit.com/blog.php?id=5 Defining Compensation https://www.5500audit.com/blog.php?id=4 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... Sat, 27 Mar 2010 09:00:00 -0500 https://www.5500audit.com/blog.php?id=4 Participant Forfeitures https://www.5500audit.com/blog.php?id=3 Definition and uses of Participant forfeitures Sun, 21 Feb 2010 09:00:00 -0600 https://www.5500audit.com/blog.php?id=3 Correcting Plan Failures https://www.5500audit.com/blog.php?id=2 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? Wed, 03 Feb 2010 09:00:00 -0600 https://www.5500audit.com/blog.php?id=2 Remittance of Participant Deferrals https://www.5500audit.com/blog.php?id=1 Department of Labor issues guidance on remitting employee deferrals Mon, 25 Jan 2010 09:00:00 -0600 https://www.5500audit.com/blog.php?id=1