IRS Mails 401(k) Compliance Questionnaire to Employers Sponsoring 401(k) Plans

Posted June 10, 2010

IRS warns employers that failure to respond or provide complete information will result in further action.

On May 18, 2010 the IRS' Employee Plans Compliance Unit (EPCU) began sending out a compliance questionnaire to 1,200 randomly selected 401(k) plan sponsors. The EPCU launched this initiative in an effort to ensure that these popular retirement plans are being operated properly. The agency will use the information gathered to gauge plan compliance and to gain insight into how to address non-compliance trends.

Plan sponsors will have 90 days to complete and return the "voluntary" questionnaire.

According to the IRS, the 401(k) Compliance Check Questionnaire Project is neither an audit nor an investigation — but it is an "enforcement action." While participation is not mandatory, failure to accurately complete and return the questionnaire within the three-month window could trigger a plan audit. The questionnaire is quite detailed and technical. Responding with wrong answers also could result in a plan audit.

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

 

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January 2010

Will you have 27 pay periods in 2010?

Posted Jan. 1, 2010

Companies whose first payday of 2010 falls on January 1st, and whose pay periods are every other week, are directly affected

It is a simple matter of math that is affecting standard pay periods in 2010. If your company is on a bi-weekly pay schedule, and the first scheduled payday for 2010 falls on January 1st, you will need to adjust your employees' gross wages per pay period for salaried employees.

The adjustment is minor and easy to compute. Salaried employees' annual
compensation will need to be divided by 27 - not 26. Only if your first payday in 2010 is January 1st, will this directly affect you. If you are on this pay schedule, there will be three months with three pay periods in them - January, July and December. Without making the adjustment, salaried employees would be paid more than their annual compensation.

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

 

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Significant Increases to Florida Unemployment Tax Rate
and Base

Posted Jan. 1, 2010

Facing the highest unemployment rate since 1975, the State of Florida is borrowing approximately $300 million per month to pay unemployment compensation benefits. Due to this deficit, effective January 1, 2010, an employee’s taxable wages for unemployment will increase from $7,000 to $8,500.

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

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December 2009

IRS Announces 2010 Standard Mileage Rates

Posted Dec. 7, 2009

December 7, 2009 – The Internal Revenue Service has issued the 2010 optional
standard mileage rates used to calculate the deductible costs of operating an
automobile for business, charitable, medical or moving purposes.

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

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October 2009

IRS Announces Retirement Plan Limitations

Posted Oct. 15, 2009

DOLLAR LIMITATIONS ON BENEFITS AND CONTRIBUTIONS FOR RETIREMENT PLANS UNCHANGED

On October 15, 2009, the IRS announced the 2010 cost-of-living adjustments applicable to dollar limitations for retirement plans and other items. The limits remain the same as they were in 2009.

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.

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

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May 2009

IRS Relaxes Safe Harbor Rules

Posted May 28th, 2009

The Internal Revenue Service issued regulations on May 18, 2009, relaxing the 401(k) and 403(b) safe harbor rules.

Background

A safe harbor plan is exempt from the typical discrimination testing related to 401(k) salary deferrals and employer matching contributions (ADP/ACP) provided the employer commits to making either a matching contribution for those employees contributing to the plan or, a 3% contribution to all eligible employees whether or not they defer. Until yesterday, if an employer elected to make the 3% contribution prior to the start of the plan year the employer could not reduce or eliminate the 3% contribution during the year. The commitment could only be eliminated by termination of the plan.

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

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February 2009

Stimulus act provides businesses taxsaving
opportunities and other benefits

Posted February 17th, 2009

On February 17, 2009, President Obama signed into law the American Recovery and Reinvestment Act of 2009 (“the Act”). Although there was much debate in Congress over this stimulus legislation, there’s no doubt that the nearly $800 billion act’s government spending initiatives and tax incentives for private spending will benefit many companies. Additionally, the Act provides businesses a multitude of tax-saving opportunities.

 

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

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February 2009

Will the Stimulus Act Benefit You and Your Family?

Posted February 17th, 2009

On February 17, 2009, President Obama signed into law the American Recovery and Reinvestment Act of 2009 (the Act). In addition to government spending initiatives intended to revive the economy, the nearly $800 billion act provides hundreds of millions of dollars of tax cuts expected to benefit 95% of taxpayers.

Because of adjusted gross income (AGI) phaseouts and other limitations, you may not qualify for many of the new or expanded tax breaks the Act provides. But even if you don’t, your children, parents or other loved ones might, so you’ll want to be familiar with the Act’s tax provisions. The Act also provides help to laid-off workers that may benefit your family.

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

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November 2008

How will President-Elect Obama's Tax Plan Affect
MY Taxes?

Posted November 10th, 2008

With the current turbulent financial situation and a new chief executive preparing to take the oath of office in just over two months, many of us are wondering what impact our new President will have on our taxes. Click here to download this important LBA Alert to learn more.

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March 2008

Tax Law Enacted to Spur U.S. Economy

Posted March 7th, 2008

The Economic Stimulus Package Act of 2008 is designed to boost the U.S. economy by providing tax rebates to individuals and tax incentives for businesses. Click here to download the LBA Alert on this important piece of legislation to learn how it could affect you.

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March 2008

LBA Releases Top Ten Planning Tips for 2008

Posted March 7th, 2008

LBA has released its 7th annual list of Top Ten Planning Tips. These helpful hints have helped hundreds of LBA’s clients properly plan to proactively maximize their income and minimize their tax liability. Click here for this year’s list.

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November 2007

IRS Announces 2008 Standard Mileage Rates

Posted November 28th, 2007

The Internal Revenue Service has issued the 2008 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Download the Alert for a list of the new rates.