Set up a New Safe Harbor 401(k) Plan by October 1

Business owners and other Highly Compensated Employees (HCE’s) really benefit from a Safe Harbor 401(k) Plan. They can maximize their deferral contributions to the plan regardless of the level of participation by the Non-HCE’s. That maximum for 2020 is $19,500 plus a $6,50

CARES Act RMD Waiver

The CARES Act (Coronavirus Aid, Relief, and Economic Security Act) provides for many types of relief to individuals and businesses. One such relief allows participants and beneficiaries to forego taking 2020 RMD’s (Required Minimum Distributions). RMD’s are generally requi

ATTENTION ILLINOIS EMPLOYERS!

Illinois Secure Choice retirement savings program is for Illinois employers who do not already offer an employer-sponsored retirement plan. It is intended to provide a simple way for employers to help employees save for retirement without any employer fees/ contributions. Employers wh

Should I Cash Out My 401(k) or Roll it Over?

When a participant in a 401(k) Plan terminates employment, there are typically a few options they have regarding what to do with their plan. Take a cash distribution – This is a taxable event (assuming all funds are pre-tax funds). The plan will automatically withhold 20% for fe

How to Avoid RMD’s of your Roth 401(k)

In a Qualified 401(k) plan, a participant must begin Required Minimum Distributions (RMD’s) in the year he or she reaches age 70 1/2. This rule also applies to Pre-tax IRA’s. However, there is an exception to this rule when it comes to Roth IRA’s. This provides for a