HSAs and what you need to know about them!

By Mack Bekeza Since 2003, Health Savings Accounts (“HSAs”) have been an excellent tool for families to help cover current healthcare costs, along with future healthcare costs. HSAs are also known to be an excellent tax-planning tool since participants are allowed to contribute on a pre-tax basis and the funds grow tax deferred. Additionally, participants […]

In-plan Roth Rollovers: the latest topic

Get out your red pen, folks: serious revisions to the rollover options for your plan. Today we’re looking at how you will need to revise your Plan Document in order to offer in-plan Roth rollovers and a few highlights. In-plan Roth rollovers of otherwise non-distributable amounts are treated as eligible rollovers, meaning that no withholding […]

401(k) Questionnaire Project

Back in May of 2010 the IRS sent letters to 1,200 401(k) plan sponsors instructing them to complete the 401(k) Questionnaireonline by visiting a secure website and using a PIN number provided in the cover letter.     Their stated intention is to: better understand 401(k) plan compliance issues, determine how their tools and voluntary compliance programs are working, and […]

In-Plan Roth Rollovers

On November 26th, 2010, the IRS provided guidance relating to rollovers from 401(k) plans to designated Roth accounts in the same plan (“in-plan Roth rollovers”).  They used a Q&A format (20 questions) and below is a summary of three key questions. Q-2.  What amounts are eligible for in-plan Roth rollovers? A-2.  An amount is not eligible for […]

New IRS Initiative Targets 401(k) Plan Compliance

by Ed Frado, J.D. IRS recently announced that, starting in March, it would begin sending questionnaires to “a random sample of 401(k) plan sponsors” for a new initiative to gauge the “health of these plans.”  As background, the IRS provides on its website several tools (e.g., a “401(k) Fix-It Guide”) intended to encourage plan sponsors […]