If plan sponsors are concerned about 2020 contribution requirements for a Cash Balance plan, there are actions that can be taken. Because many of ABP’s plans are designed to require 1000 hours to accrue a benefit for the year, it is possible to make changes currently for calendar year end plans:
Lower Cash Balance Contributions
A Cash Balance plan can be amended to provide for lower contributions. However, be aware that if you maintain a 401(k) or Profit Sharing plan, required nondiscrimination testing takes into account both plans. For that reason, Profit Shar...
In this unprecedented time, we know that many of ABP’s clients and advisors may have questions regarding their plans. To keep you informed of plan options, we have documented some of the questions that we have already received or anticipate receiving during this difficult time.
Employee Deferral Changes
Active employees may want to change or discontinue their deferral contributions at this time. Although many of ABP’s plans were written with the ability to change or discontinue deferrals at any time, you should refer to your Summary Plan Description (SPD)...
This article applies primarily to ABP client service partners who are accountants and financial advisors. Do you have clients who don't currently sponsor a tax-qualified retirement plan but contemplate doing so? There is a seldom-used federal tax credit that may help those businesses recover all or a portion of plan start-up costs and other administrative expenses.
Eligible Plans: The start-up plans tax credit is available to businesses that establish a new SEP, SIMPLE IRA, 401(k), pension, or other qualified plan.
Safe harbor 401(k) plans have become a very popular plan design over the last decade. By providing an opportunity for company principals to maximize deferrals and also providing a minimum level of savings for all participants, the Safe Harbor design is attractive to both employers and employees.
If you have discussed the idea of a Safe Harbor 401(k) plan during recent annual planning with your clients, you need to be aware of an important date. October 1st is the latest date that a client can adopt Safe Harbor provisions to be effective for the 2016 calendar year...