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This issue's articles are:
Qualified plans must perform annual testing to be sure that the plan doesn’t unfairly discriminate in favor of "highly compensated employees" (HCEs) or exceed the contribution limits set forth by the IRS. Depending on your plan provisions, it isn’t just one calculation, but a series of tests that show that your plan is not discriminatory. If your plan is audited, the auditor is looking for proof of this compliance.
If your plan offers a Roth 401(k) provision, your participants might ask, “Which one is better for me?” As the availability of Roth options in 401(k) plans and Roth contribution percentages continue to rise, it’s important to be able to guide participants in making the right choice.
In 2018, the 401(k) plan celebrated its 40th birthday! Though extremely popular today, 401(k) plans came about almost by accident. IRC Section 401(k) was passed into law as part of the Revenue Act of 1978 and was included to limit executive compensation. However, in 1980, Ted Benna of the Johnson Companies used the provision to create and get IRS approval of the first 401(k) plan for his company. For this he is often referred to as the father of the 401(k).
The next newsletter to be issued will be the Spring 2019 edition released in the beginning of May. In the meantime, if you have any topics you'd like covered in a future release, please reach out. We'd love to hear what information you'd like to pass along to your clients.
Ellen E. Miller
Retirement Planning January - February 2016
Retirement Planning March - April 2016
Retirement Planning May - June 2016
Retirement Planning Fall 2016
Retirement Planning Winter 2017
Retirement Planning Spring 2017
Retirement Planning Summer 2017
Retirement Planning Fall 2017
Retirement Planning Winter 2018
Retirement Planning Spring 2018
Retirement Planning Fall 2018