With this economy, plan sponsors may be looking to cover the cost of the 401(k) plan with the plan assets. Plan sponsors should note what fees can or can not be paid with these funds. Jerry Kalish with Employee Benefit Audits provides some guidelines in this article:
Hands out of the cookie jar: Reminding plan sponsors what expenses can (and can’t) be paid with 401(k) plan assets
It’s still a tough economy out there, and many employers are trying to cut the cost of their 401(k) plans. The big news item has been the number of employers cutting back or eliminating their match.
But flying under the radar are those employers that are using the 401(k) plan to pay some or all of the cost of operating and administering the plan.
Click here to read more.
Check out the recent Employee Benefits News article on the increased pressure from the Department of Labor and the IRS on DC plans, and how plan sponsors are reacting.
Under pressure, employeers streamline DC plans
by Kathleen Koster
Nearly 60% of defined contribution plan sponsors plan to take action in the next 12 months in response to increased Department of Labor and IRS audit and enforcement activities.
To read the full article, click here.
Not so eFast – tips from Employee Benefit News on the new mandatory e-filing for Form 5500. Read the full article here.
The deadline for filing an extension for your year-end employee benefit plan Form 5500s is fast approaching (August 2).
PBTK is urging our clients to file them as soon as possible to avoid the inevitable back-log of filings resulting from the new mandatory electronic filing. If you haven’t done so already, contact your third-party administrator or CPA firm to get the extension taken care of in the next few days.