|
Winter 2014, Volume 7 / Issue 4
|
|
Notes from the President - Gary Zurek, President
Happy Holiday Season!
We at TSC would like to take this opportunity to wish our clients, referral sources, and good friends a very Happy Holiday Season! We feel very blessed to work with terrific clients that are genuinely interested in providing meaningful retirement benefits for their employees as well as the financial advisers and accountants that are devoted to the success of the plans they establish through TSC. Thanks to all of you, we have become a retirement plan industry leader in the upper Midwest and we are truly humbled by this accomplishment.
We wish you all good fortune and success for 2015 and beyond. |
|
ADP/ACP Testing and Top Heavy Testing
Qualified retirement plans are subject to various nondiscrimination tests. The two most common tests are also the most commonly confused. First, it is important to understand how employees .... Read More
|
Form 5500, Employer Contribution Deposit, ADP/ACP Excess, 402(g) Limit Corrections....Read More
|
What Notices and Disclosures are Required for Newly-Eligible Employees?
Some notices and disclosures are required for all qualified plans while others depend on specific plan features and whether or not participants are able to direct their investments. The following is a summary of the most common qualified retirement plan notices and disclosures ....Read More
|
|
TSC's Year End Client Questionnaire is Upgraded
We are continually looking for ways to make it easier for our clients to provide us the information necessary to work on their plans. Beginning in January, all of our clients who go online to complete the year end questionnaire will ....Read More
|
|
Eligible Compensation?
The time for reporting information to TSC for calendar year plans is rapidly approaching so we would like to offer a quick refresher on the compensation amounts that should be reported on the year-end census file and used for plan purposes. The census file includes columns for....Read More |
Lisa Melberg
Lisa has been working with retirement plans since 2007. She recently moved from the Brainerd Lakes area to join the TSC family as a Plan Document and Compliance Specialist. Lisa has her QKA and QPA designations with ASPPA and a CISP designation with the American Bankers Association ....Read More
|
 Brain Teaser
The Holiday Greeting Company maintains a 401(k) plan which allows employees to enter the plan semi-annually after their completion of 1 year of service. Mr. Snowflake was hired on 04/01/13 and completed his first year of service during his first 12 months of employment, allowing him plan entry on 07/01/14. However, Mr. Snowflake decided not to begin 401(k) deferrals until 10/01/14. During 2014, Mr. Snowflake earned $20,000.00 during each calendar quarter. What is the amount of Mr. Snowflake's 2014 date of entry compensation?
-
$80,000.00
-
$60,000.00
-
$40,000.00
-
$20,000.00
Click here to submit your answer.
Question from last issue:
George is a 100% owner of Jetson's Hover Craft Rentals and sponsor's a 401(k) plan. George was born on May 7, 1942. Does he have an RMD due for the 2014 plan year? If so, when is this due?
Answer: Yes, because George is an owner he cannot delay his RMD. His 70.5 year was in 2012 therefore his subsequent RMDs will always be due on 12/31. His 2014 RMD is due 12/31/2014.
|
Is it OK to fail the ADP test?
We are all conditioned to believe it is never a good thing to fail a test. Generally, that is true, why else would you bother studying or otherwise preparing to pass a test. However, in the case of 401(k) plans subject to nondiscrimination testing of employee deferrals, failing the Average Deferral Percentage (ADP) test may actually ........ Read More
|
