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Catch the Catch-Up Final Regulations Before They Catch You Off-Guard

"If reading all these rules has you thinking about eliminating Roth provisions or catch-ups from your plan, I don't blame you, so here are some of the most common considerations ... [1] Plans do not have to offer a Roth option. [2] Plans cannot require that ALL catch-up contributions be ROTH contributions. [3] Plans cannot make Roth available only for catch-up contributions. [4] Plans cannot make Roth available only to catch-up eligible participants. [5] Catch-up eligible participants who are not High Earners are not precluded from making catch-up contributions in a plan that does not have a Roth feature."

When Do Retirement Plans Need a Financial Statement Audit?

"[T]he 80-120 exception works well for a growing plan, but not so well for a shrinking plan. ... [If] a plan tends to teeter over and under the plan audit requirement, it may be wise for the plan sponsor to engage the auditor to perform agreed upon procedures in the off years to facilitate the test of opening balances when the plan goes back to needing an audit and as insurance that operations have remained compliant." [Article provides a detailed checklist to count participants and determine whether a plan audit is required.]

Auditing Assets Merged from Unaudited Retirement Plans

"Large retirement plans that require an audit often merge in the assets from small plans in connection with a stock acquisition or a merger of the plan-sponsor companies. Asset acquisitions can result in rollovers from the plan sponsored by the entity that sells the assets, if the participants terminate employment or the plan terminates, or in merged account balances if the purchaser adopts the plan."

January 1 Plan Mergers and the One-Day Audit Controversy

"[A] January 1 merger date causes a logistically inconvenient and impractical one-day plan year for the merged plan.... [T]he correct course of action is to complete a one-day final Form 5500 and audit report.... [T]he DOL's main concern is that the transfer of participant account balances from plan to plan be subject to audit procedures. To EBSA, an independent verification of the transfer is the most important practical consideration "

New Voluntary Fiduciary Correction Program: Sometimes, Voluntary Can Feel Mandatory

"SCC-eligible sponsors can now officially use the DOL calculator to compute lost earnings, but the new SCC added an online submission and other paperwork to employers who used to self-correct without telling the government. However, for employers who filed under VFCP and are now eligible for SCC, the Department estimates that the SCC will streamline the process for 73 percent of small and large VFC cases involving Lost Earnings less than or equal to $1,000."

Timeliness of Employee Deferral Deposits -- and What Happens When They're Late

"The DOL has provided some certainty for small plans: under a safe harbor, the deposit of deferrals within seven days will be considered timely ... Pension professionals who service large plans [those with 100 accounts or more] are put in a position to interpret 'earliest' and 'reasonably' as they apply to each client's circumstances.... Whether the plan sponsor and its service providers are enforcing a 3-day, 7-day, or some other version of 'My best should be good enough', remittances that are determined to be late must be corrected."

What Documents Do I Need for a 401(k) Audit?

"[This article provides] a sample checklist of documentation needed for a 401(k) or 403(b) plan audit.... [M]any of the items will be provided by the plan's third-party administrator or recordkeeper ... As a first step, you should authorize view-only access to the plan's webstation for your auditor. Direct access to the webstation will streamline the process, allowing your auditor the ability to directly download or request the necessary reports from your recordkeeper,[.]"

Large Welfare Plans That Use a Trust Have a Financial Statement Audit Requirement

"Which large welfare plans need to hire a CPA auditor? ... Funded welfare plans: defined ... Unfunded and/or fully insured plans: defined ... What makes a health and welfare plan a large plan? ... How many forms 5500 are due when there are multiple policies? ... Which welfare plans file what? ... Avoiding the audit through an unfunded plan."

Things You Should Know About Designated Roth Accounts in Qualified Plans

"The SECURE 2.0 Act will almost certainly motivate the remaining 7% of plan sponsors who do not yet offer a Roth deferral option to offer designated Roth accounts. Find out why by following this 'soup-to-nuts' listing of 55 things to know about Roth designated accounts in qualified plans[.]"

First Steps Toward Rothification: the Roth Catch-up Requirement for High Earners

"$145,000 wage threshold ... All Roth contributions count ... Deemed elections or automatic discontinuance ... Reclassifications to Roth catch-up due to exceeded limit ... Rothification complications: short-term revenue, long-term loss."