Has Your Company 401(k) Plan Made These 11 Mistakes? | Payroll Link

May 8, 2017May 5, 2017 ~ knjohn ~ Leave a comment

It is critical to keep your company’s 401(k) plan in compliance with numerous federal laws and regulations. Plans that are found to be in violation risk expensive penalties and disqualification.

The IRS recently issued this list of 11 potential errors:

1. Has your 401(k) plan document been updated within the past few years to reflect recent law changes?

2. Are the plan’s operations based on the terms of the plan document?

3. Is the plan’s definition of compensation for all deferrals and allocations used correctly?

A 401k Conundrum: Can You Make Cash Pile Last for Life? | Bloomberg

October 8, 2014 ~ knjohn ~ Leave a comment

Even if you’ve socked plenty of money away in your 401k plan and invested it carefully, some of your toughest decisions lie ahead. And don’t expect much help or clarity from the government or your employer. Strategies for drawing down lump-sum accounts in retirement — more important than ever in the 401k era — have received little attention from policy makers. For retirees, choices about how to spend a life’s worth of savings are fraught with tricky calculations about financial risk, taxes and death.