What Is an Annuity Contract?“I am new to the 403(b) world, having come from the 401(k) arena. I am quite familiar with mutual funds, but can the Experts explain what exactly is an annuity contract?”Read more > |
FICA Difference Between 403(b)s and 401(k)s“I read with great interest your recent Ask the Experts column about one-time irrevocable elections for 403(b) plans. I was surprised that you mentioned that such contributions are indeed subject to FICA. I work primarily with 401(k) plans, where this is clearly not the case. Is it different for 403(b) plans, or was this a typo.”Read more > |
What If the Last Day of the Plan Year Falls on a Weekend?“Our ERISA 403(b) retirement plan has a last-day rule, where the document language is quite clear; you must be employed on the last day of the plan year (our plan year is calendar) in order to receive our annual employer contribution. However, the employees in question would most certainly have been at work had December 31 been a business day; the only reason we terminated them on the 30th is that they could not have worked for us on the 31st, as the office was closed. The plan document does NOT address the specific issue of what happens when the office is closed for business on the last day of the year. Any thoughts from the Experts as to whether or not an employer contribution for the 2016 plan year should be provided?”Read more > |
Post-Termination Contributions for Employee Receiving Severance Pay“We have an employee who has been here for many years whom we are forced to terminate since we are phasing out his entire department. However, we want to reward him for his lengthy service and valuable contributions. We are proving him with severance, but we understand that we cannot make contributions to the 403(b) plan based on that severance pay. But, could we make post-termination contributions under the 403(b) rules that allows for employer contributions following termination of employment?”Read more > |
Effect of the Supreme Court Ruling on Church Plans“I heard that the recent Supreme Court ruling was favorable to church plans sponsored by organizations such as faith-based universities and church hospitals. Does the ruling mean that it may be possible for such organizations to continue to maintain church plans that are not subject to the Employee Retirement Income Security Act (ERISA) as they have in the past, or is there more to come on this subject?”Read more > |
When the Individual Who Signed Form 5500 Retired“We are starting preparations for our retirement plan’s Form 5500 annual return filing; however, the individual who signs our returns as employer and plan administrator retired, and the new person taking over the position inquired as to exactly who should be signing as the employer and plan administrator. Do the Experts have any guidance on the subject?”Read more > |
Differences in 457(b) Plans for Different Entities“What are the primary differences between a 457(b) plan of a private tax-exempt organization and a governmental 457(b) plan?”Read more > |
