Summer 2015, Volume 8 / Issue 2   
 
Notes from the President - Gary Zurek, President

Millennials and Measuring the 401(k) Plan

 

There is good news to report on savings and our future. Time Inc.'s
"Why Millennials are Flocking to 401(k)s in Record Numbers"
article states that the number of millennials enrolling for the first time in 401(k) plans jumped 55 percent in the first half of 2014. The Bank of America Merrill Lynch 401(k) Wellness Scorecard released the data in their twice a year trending report.

 

With approximately 25 percent of our workforce today being millennials and projected to become 50 percent by 2020, there is hope for retirement for their generation.

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FAQ's - Lisa Melberg
 

Are my participants required to designate a beneficiary


 

No, when a participant enters a retirement plan or Individual Retirement Arrangement (IRA) there is no requirement that they name a beneficiary. However the majority of participants wish to direct their assets upon death...

 
Retirement: Goal Achieved! 
 
Executive Vice President and Senior Counsel, Mark Foster, has been consulting clients regarding the design and operation of their qualified retirement plans for more than 36 years and providing internal technical support and training for TSC staff. He joined TSC in 1978 and became a Principal of the company in 1998. 
    
Meet TSC's Compliance Team

Juhl Stoesz:
In my role as Vice President of Compliance and General Counsel, I lead TSC's Compliance Department as well as serve as the in-house legal counsel for the company.  Along with the other members of the Compliance Department, I consult on a wide array of retirement plan issues arising under the Employee Retirement Income Security Act and the Internal Revenue Code in addition to assisting with drafting plan documents and amendments...
Industry/Legislation Updates Dakota Zurek and Juhl Stoesz
 
Fiduciary Focus: Tibble v. Edison International and the U.S. Department of Labor's Proposed Fiduciary Investment Advice Rules
 
Fiduciary, a term that is rarely used in everyday conversation, has been garnering a lot of attention in Washington, D.C. as of late. While fiduciary status has long been an important issue to retirement plan sponsors and service providers, with all three branches of government weighing in on fiduciary issues, now is a good time to take a fresh look at this topic...
What Does This Mean? - Matthew H. Slyter, QKA
  

Eligibility vs. Allocation Conditions - Is there a difference?


In short, yes they are very different. Understanding the difference can be difficult because eligibility requirements and allocation conditions are often expressed similarly even though they really have no relation to one another. Eligibility refers to the requirements a new employee must meet before they can enter the plan...

Brain Teaser

Matt's Marble Making 401(k) Plan contains the following provisions:


 

Eligibility requirements:

Employee 401(k): Age 21, 1 month waiting period, with quarterly entry dates

Employer Safe Harbor: Same as employee 401(k) requirements

Employer Non-Elective (Profit Sharing): Age 21, 1 year of service with at least 1,000 hours, with semi-annual entry dates


 

Allocation conditions:

Employer Safe Harbor: No allocation conditions

Employer Profit Sharing: Must be employed on the last day of the plan year and have worked at least 1,000 hours during the plan year


 

Facts:

Maddie is 22 years old and was hired on a part-time basis of 30 hours per week on March 15, 2015 and continues to be employed at 30 hours per week until February 1, 2017.


 

Question 1: What date(s), if any, does Maddie enter the employee 401(k) and employer profit sharing portions of the plan?


 

Question 2:  Does Maddie receive a share of the employer profit sharing contribution made for the 2016 plan year? How about the 2017 contribution? 


 

Click here to submit your answer for your chance to win a $25 AMEX gift card! 

  

Question from last issue:


 

Vin, the owner of the Fast and the Furious Go-Cart Track, has a 401(k) plan with no employer contributions. Vin would like to know approximately how much of a 401(k) contribution he can defer for himself without failing the ADP test. Where would Vin look to find this information?
 

Answer:  The Valuation Cover letter of the TSC Annual Report Package
   
Fraser operates every day in the spirit of its founder Louise Whitbeck Fraser who was a true pioneer. In the 1930s, Mrs. Fraser worked with children who others said had no hope and should be institutionalized. Her dedication and innovation changed their lives and allowed them to be part of the community, through Fraser School. We celebrate almost 80 years of serving people with special needs and honor the legacy of Mrs. Fraser by continuing on in her traditions of commitment, creativity and compassion.. 

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TSC Translator Contributing Staff Members
Jennifer Arntson
Client Relationship Manager
Karen Thompson
Retirement Plan Administrator Manager
Becky Fisher
Retirement Plan Administrator
 
Cynthia Mills
Plan Document and Compliance Specialist
 
Andrea Gelhar
Plan Document and Compliance Specialist
Juhl Stoesz
Associate Counsel
Dennis Culhane
Retirement Plan Administrator
Paul Erickson
Retirement Plan Administrator Manager 
Dean Schwientek
Network Systems Admin
 Mike Gschwind
Retirement Plan Administrator
 Lisa Melberg
Plan Document and Compliance Specialist 
 
Matt Slyter
VP Operations
 

Articles included in the TSC Translator are intended to provide general information about retirement plan developments and issues. The information provided should not be construed as legal or tax advice or opinion. Readers need to discuss specific factual situations confronting them with their retirement plan service providers and/or legal and tax advisors.

This email was sent by: TSC, Inc. 7300 Metro Blvd. Suite 450 Edina, MN 55439 
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