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So far rocitpower has created 22 blog entries.

Avoid Unwanted Surprises with Quality Benefit Plan Audits

The U.S. Department of Labor conducted a 2015 study of the quality of Employee Benefit Plan (EBP) Audits for the 2011 filing year. They looked at who audits EBPs, the size of CPA firms performing them, the proportion of each CPA practice devoted to them and the overall quality of audits performed.  In doing so, they [...]

Definition of Compensation in Retirement Plans

While most Plan Sponsors can tell you off the tops of their heads what their Plan’s eligibility requirements are, the formula for calculating employer contributions and the types of withdrawal features in their Plan; many can’t tell you what their plan’s definition of “Compensation” is.  Using the wrong definition of compensation to determine contributions is [...]

Beef up retirement savings with a cash balance plan

Imagine your 401(k) plan on steroids.  Imagine being able to contribute four times more than your current   401(k) limit.  Imagine having an balance where investments are managed for you and the investment return is guaranteed.  And imagine, upon termination or retirement, taking your balance as a tax-free rollover into an IRA.  Well, your imagination may [...]

OPEB News and Notes

Accounting standards and actuarial guidelines are subject to constant review and revision over time, with a focus on improving the clarity and accuracy of reporting.  At Burke Group our commitment is to remain at the forefront of these changes.  Recently two new guidelines have been published which could significantly impact the liabilities, reporting, and potentially [...]

Churn ‘N’ Burn

I have been a big fan of Dilbert comic strips since my youth.  There is something amusing about a micromanaged, white collar worker with a big head and his little pet dog who seems to know it all.  Most everyone will agree that creator Scott Adams writes some pretty funny stuff. Over the years, Scott’s [...]

Don’t Celebrate Too Quickly

401(k) participants continue to demonstrate their inability to make wise investment decisions.  I randomly sampled several 401(k) plans and found that average participant rate of return was 7% to 10% below the S&P 500’s 30% rate of return for 2013.  Some of the individual investments in the plans sampled had 40% or greater returns for [...]

Same-Sex Marriage and Qualified Retirement Plans

Recent changes have been made to the Defense of Marriage Act (DOMA) due to the United States V. Windsor Supreme Court decision in June, 2013, affecting the administration of qualified retirement plans. As of September 16, 2013, with guidance issued by the IRS and Department of Labor, plans must be administered such that same-sex couples [...]

Those Pesky Missing Participants

"Now you see it, now you don’t" may be fine for a magic show but not when it comes to missing participants in your Retirement Plan. As Fiduciaries, Plan Sponsors have the responsibility to maintain accurate records and open lines of communication with all participants. If you have lost touch with former employees not only [...]

Lessons Learned from March 15th

Due to the nondiscrimination regulations for tax qualified plans, the IRS places a limit on the amount that a Highly Compensated Employee (HCE) may save in a 401(k) plan. This limit is based on the average rate of savings for employees who are not HCEs. The IRS defines an HCE as an employee who is [...]

Who, What and How Much are we paying?

The 2012 calendar year brought sweeping changes to the retirement plan industry. 401(k) practitioners and recordkeepers devoted most of the year to developing, implementing and distributing fee disclosures pursuant to Department of Labor Regulations 408(b)(2) and 404(a)(5). Lots of paper was generated, but just how effective were these new disclosures at familiarizing plan participants with [...]