Small Business 401(k) Blog

The Frugal Fiduciary Small Business 401(k) Blog

Get the latest industry news, deadlines and tips you need to know to help tackle your fiduciary responsibility needs.

Blog Feature

Testing

401(k) Testing – Deadlines Employers Should Know

By: Eric Droblyen
January 22nd, 2020

To meet IRS qualification requirements, 401(k) plans must pass nondiscrimination testing annually to ensure plan contributions do not disproportionately benefit Highly-Compensated Employees (HCEs) or exceed legal limits. While most employers hire a professional third-party administrator (TPA) to complete this work, all employers should understand the deadlines that apply to the process – which generally relate to failed testing and contribution funding. This basic knowledge can help avoid the often painful consequences of late testing – including missed tax deductions, IRS penalties, and plan disqualification.

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Multiple Employer Plans | Thought Leadership | Fiduciary Responsibility

The SECURE Act of 2019 – An Analysis of Key 401(k) Changes

By: Eric Droblyen
January 8th, 2020

On December 20, 2019, the President signed the Further Consolidated Appropriations Act, 2020 into law. This year-end spending package included the most extensive retirement plan legislation in over a decade - the Setting Every Community Up for Retirement Enhancement (SECURE) Act. After the SECURE Act was passed by the House, I judged the bill a mixed bag of good, bad, and ugly – the good representing welcome reform, the bad representing undue complexity, and the ugly representing handouts to the financial industry. That view has not changed now that the bill is law.

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401(k) Plan Design Checklist

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Subscribe to the The Frugal Financial Small Business 401(k) Blog and receive this free checklist for help in determing the best 401(k) plan design options and fit for your company.

Blog Feature

The Top Ten Frugal Fiduciary 401(k) Blogs of 2019

By: Eric Droblyen
December 25th, 2019

Happy Holidays from the Frugal Fiduciary! As 2019 comes to a close, we looked back through this year’s blogs to find our most-read blogs. It turns out our most popular blogs related to the following topics:

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Provider Shopping | Fiduciary Responsibility

401(k) Administration Checklist for the 2020 Plan Year

By: Eric Droblyen
December 11th, 2019

401(k) plans are popular today because they offer generous tax benefits to employers and employees. However, to qualify for these benefits, 401(k) plans must complete a myriad of plan administration tasks each year. It’s ultimately up to employers to ensure each task is completed timely.  Meeting this important fiduciary responsibility can seem overwhelming, but it doesn’t need to be. The key is hiring a 401(k) provider willing and able to do three things - 1) summarize all required tasks, 2) complete the more difficult and time-consuming ones, and 3) provide simple direction for the rest.

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Testing | Plan Design | Plan Setup

How to Attribute Family Ownership When 401(k) Plan Testing

By: Eric Droblyen
November 27th, 2019

It’s impossible to complete annual 401(k) plan testing accurately without a clear understanding of the plan sponsor’s ownership structure. This information is used to determine the company’s controlled or affiliated service group status as well as the Highly Compensated Employee (HCE) and key employee status of plan participants. To make these determinations properly, certain “family attribution” rules must be applied correctly. These IRS rules exist to thwart ownership structures that would otherwise permit a 401(k) plan to discriminate in favor of business owners.

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Employee Enrollment | Thought Leadership

The DOL Proposes New Electronic 401(k) Disclosure Rules

By: Eric Droblyen
November 13th, 2019

On October 22, 2019, the Department of Labor (DOL) proposed new regulations that would supplement the agency’s current rules for the electronic distribution of 401(k) disclosure notices to plan participants. Specifically, the proposal would add a new “notice and access” rule that permits employers to post notices to a website when certain requirements are met. This common-sense 401(k) plan reform is long overdue.

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