Archive for September, 2013

Including Employees in Your Retirement Plan

A trouble spot for many plan sponsors is whether to include employees or not in their retirement plans.  If there is uncertainty regarding whether an employee is an independent contract or not, the employer may not be sure what to do.  I wanted to point out a great IRS resource located at http://www.tax.gov/SmallBusinessTaxpayer/RetirementPlans/RetirementPlansMisclassificationWorkers. The video discusses types of employees and factors in the determination.  In addition, it notes that you may file an IRS Form SS-8, located at http://www.irs.gov/pub/irs-pdf/fss8.pdf, for determination of employment status.  I would also add that you may find it useful to find the expertise of an employment lawyer.

I bring up these questions to help prompt plan sponsors to consider areas to review in order to ensure their retirement plan is in compliance.

Please consider buying my book, A Short Guide to Finding a High Value, Low Fee Third Party Administrator (TPA) for Your Retirement Plan, available at amazon.com and https://www.createspace.com/3964647. My goal is to help plan sponsors make the best decision they can when selecting a  TPA. I understand how difficult a decision this can be when you do not know what skills and credentials to look for. I have created this book to ease the process and enable plan sponsors to make good choices through my insights from working in the industry.

Thanks for reading and have a wonderful day!   Please be sure to sign up for my blog and follow me on twitter.

I am not selling my own or any one else’s TPA services through this blog or my book.
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September 24, 2013 at 1:12 pm Leave a comment

Self Employment Compensation and Your Retirement Plan

Do you know what definition of compensation should be used for your retirement plan?   Are you calculating contributions on the right definition?  A common trouble spot is compensation for the self-employed.

Communication between  the plan sponsor and the third party administrator can help decrease the probability of error.  It is important that whoever is calculating your contributions and performing your testing know whether you are a sole proprietor, partnership, or other entity such as an LLC where the members have elected to be taxed as self-employed.  The calculation for compensation may require some adjustment, and the IRS has a great article detailing the issue at http://www.irs.gov/Retirement-Plans/Self-Employed-Individuals-Calculating-Your-Own-Retirement-Plan-Contribution-and-Deduction.

I bring up these questions to help prompt plan sponsors to consider areas to review in order to ensure their retirement plan is in compliance.  Since many third party administrators never ask this question, I strongly recommend that all plan sponsors double check any contribution calculations to verify that the software is calculating them correctly.  If you think there is an error, ask your third party administrator to explain their calculations.  It is important that everyone understand and agree that the plan calculations are accurate.

Please consider buying my book, A Short Guide to Finding a High Value, Low Fee Third Party Administrator (TPA) for Your Retirement Plan, available at amazon.com and https://www.createspace.com/3964647. My goal is to help plan sponsors make the best decision they can when selecting a  TPA. I understand how difficult a decision this can be when you do not know what skills and credentials to look for. I have created this book to ease the process and enable plan sponsors to make good choices through my insights from working in the industry.

Thanks for reading and have a wonderful day!   Please be sure to sign up for my blog and follow me on twitter.

I am not selling my own or any one else’s TPA services through this blog or my book.

September 11, 2013 at 6:38 pm Leave a comment

Happy Birthday ERISA 2013 (or Happy Labor Day)!

Happy Labor Day!  This week we celebrate the anniversary of ERISA.  The act was signed into law on September 2, 1974, Labor Day.  And if you do not think we have come a long way, I wanted to share the IRS’s article regarding same sex married couples and located at http://www.irs.gov/uac/Newsroom/Treasury-and-IRS-Announce-That-All-Legal-Same-Sex-Marriages-Will-Be-Recognized-For-Federal-Tax-Purposes;-Ruling-Provides-Certainty,-Benefits-and-Protections-Under-Federal-Tax-Law-for-Same-Sex-Married-Couples.  Essentially, the ruling confirms that same gender couples that marry in areas where it is legal to do so are eligible as married couples under benefit provisions.

Thanks for reading!  Please be sure to subscribe to my blog and follow me on twitter @ChristineGurney!

September 4, 2013 at 1:26 pm Leave a comment


Christine Gurney

A pension professional who shares her thoughts and ideas about the pension world for industry members and anyone else interested.

@ChristineGurney

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