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Social Security Reform -- Let's Not Forget About the Middle Class

Excerpt: The May 2006 CPA Journal's theme of Social Security reform was timely and relevant. It addressed the Social Security insolvency problem, noted the issue of the fund's being insolvent earlier than most government economists had forecast, and discussed possible solutions. However, the articles were somewhat unbalanced. They were skewed toward high-net-worth individuals and ignored the lower and middle classes.

Improving Audits of Larger Governmental Entities and Employee Benefit Plans

"[S]everal professional and governmental studies (by the AICPA, GAO, and DOL) have shown audit quality problems with employee benefit plans ... To resolve these matters, the AICPA and GAO could [1] require annual reviews; [2] impose stricter punishments on firms and partners with repeated violations; or [3] disclose violator's names to their state boards of accountancy, other regulators, and other key parties. If deficiencies do not decrease, the authors believe that the U.S. Congress should consider having the GAO and DOL oversee peer reviews of audits of ... employee benefit plans."

20 Questions About Establishing a Health and Wellness Program in the Workplace

"A medical insurance plan along with a well-designed wellness program encourages employees to take personal responsibility to help minimize healthcare costs. When medical and wellness plans are integrated with a [self-insured medical reimbursement program], employees that participate in the wellness plan can be rewarded with cash reimbursements to cover medical expenses."

Questions Answered About Social Security

"Social Security remains a critical component of most Americans' financial and retirement plans. Despite its longevity and familiarity, many individuals are unaware of all its relevant provisions and the related benefits and drawbacks.... [This article] answers 20 common questions about Social Security so that advisors are ready to advise taxpayers."

Common 401(k) Plan Errors and How to Fix Them

"This article summarizes the voluntary correction programs administered by the [IRS] and the [DOL], identifies the most common 401(k) plan errors, walks readers through their corresponding correction methods, and includes a brief 'best practices' section to help safeguard against the occurrence of future plan errors."

Transitioning to the Updated Required Minimum Distribution Tables in 2022

"For IRA owners, the switch is straightforward: they will just reference the new table. The process is more involved for taxpayers who inherited these accounts ... With respect to individuals who die after December 31, 2019, only [eligible designated beneficiaries (EDBs)] may use the life expectancy method."

Best Practices to Reduce Excessive Fee Risk

"[T]he most common allegations raised against 401(k) plan fiduciaries [include]: [1] Failure to leverage plan profile to reduce fees. [2] Selecting excessive expense fund share classes. [3] Using plan assets to pay excessive recordkeeper compensation. [4] Offering money market funds rather than higher-yield stable value funds. [5] Failing to monitor fund performance and removing imprudent funds at least annually. [6] Failing to engage in a formal request for proposal with plan vendors at least triennially."

Untangling the Inherited IRA Rules

"This article will first provide an overview of the changes to the RMD and beneficiary rules. The article will then detail the recalculation of RMDs starting in 2021, and conclude with a discussion of the changes in the life expectancy tables."

Cybersecurity Risk Considerations for 401(k) Plans

"Many 401(k) plan sponsors mistakenly believe that when they delegate responsibilities to a record-keeping service provider, they have no liability for cybersecurity breaches.... [C]ase law is developing that should motivate plan sponsors to satisfy their fiduciary duty to enact prudent procedures and safeguards to protect plan assets and plan data."

401(k) Plan Issues in the Current Environment

"[1] Proper plan governance ... [2] Partial plan termination ... [3] Suspending safe harbor nonelective or matching employer contributions ... [4] Suspending nondiscretionary nonelective or matching employer contributions ... [5] Suspending discretionary nonelective or matching employer contributions ... [6] Paycheck protection program ... [7] Plan amendments, employee notices, and written procedures."