It might not surprise you to hear that the IRS has some fairly complicated rules governing compensation levels and retirement plan contributions. In fact, the IRS reports that a good number of plan sponsors get this key issue wrong - a mistake that can cost both time and money.
This month’s newsletter takes a look at current IRS rules to help clear some of the confusion. Find out how bonuses, reimbursements and overtime affect reported compensation. Learn about pre-participation and post-severance compensation. And because a single newsletter can’t cover a topic as complex as this one, we invite you to give us a call. Let us help you navigate the complexities and stay compliant.
When Mistakes Happen
When we work with you as your third-party administrator, we commit to keeping your retirement plan compliant and error-free. And we take that commitment seriously. But as the saying goes, mistakes happen, even with the best intentions and cross-check systems in place. And there are more than a few challenges to keeping a retirement plan on the rails and moving forward. IRS compliance is one sure way to avoid running off the track. And, believe it or not, that often-feared agency has programs in place to help plan administrators make the corrections needed to keep things running smoothly.
Signed into law in 1996, the federal Defense of Marriage Act (DOMA) is a small law that has caused big controversy.
Introduction and Background