When auditing a 401(k) plan, the DOL reviews the employer’s deposit pattern. The regulations provide a seven business day safe harbor for deposit of employee contributions to the trust for small plans (i.e., plans with fewer than 100 participants). In short, employee contributions are deposited on time when deposited to the trust within seven business days after the payroll period.

Click here to download this important LBA Alert to learn more.

April 2008

Company 401(k) Plan Sponsors Alert

Posted April 4, 2008

Foreclosures are up, home prices are down. Many borrowers are looking to their company 401(k) plans as a resource to cover financial shortfalls. As the plan sponsor, you will need to make sure you are diligent in documenting the hardship process. Click here to download our most recent Alert related to the administration of hardship withdrawals.

October 2007

IRS Announces 2008 Limits

Posted October 30th, 2007

On October 18, 2007, the IRS announced the 2008 cost-of-living adjustments applicable to dollar limitations for retirement plans and other items.

Retirement plans are subject to annually adjusted dollar limitations by the IRS for cost-of-living increases, and are normally determined based on inflation data provided by the Bureau of Labor Statistics’ release of the Consumer Price Index. Many of the retirement plan limitations will change for Tax Year 2008. Click here to download the limits.

October 2007

New Regulations

Posted October 4th, 2007

Final regulations recently released by the IRS provide the first comprehensive guidance on 403(b) tax-sheltered retirement arrangements in 43 years. Employers that sponsor 403(b) tax-sheltered retirement arrangements will have to address a number of compliance issues as the result of these comprehensive new regulations. Click here to download the details.