Researchers Find Little Cost Difference from Auto-EnrollmentA report suggests
employers that use automatic enrollment in their defined contribution
retirement plans may be using deferral and match rates that offset the costs of
higher participation.Read more > |
Paper Highlights Benefits of Financial EducationFinancial wellness
programs can cut stress and increase productivity in the work force, new
research suggests, especially when employees receive more holistic financial
education.Read more > |
Advisers Gain Allies in Fiduciary Definition DebateA number of elected officials have emerged on
the side of financial advisers in opposing the Department of Labor’s fiduciary
redefinition effort—introducing ambitious legislation to block changes to the
fiduciary standard.Read more > |
Reminder of 457(b) Plan Voluntary Correction IssuesThe IRS has updated its website about 457(b)
plan submissions to its voluntary compliance program.Read more > |
Guide Compares Plans for Tax-Exempt and Governmental EntitiesThe IRS has released a publication to help
tax-exempt and governmental entities choose a retirement plan.Read more > |
Ask the Experts – ACP Testing After a Spin-Off “I read
your recent Q&A regarding post-merger ACP testing with great interest, as
our hospital has an ACP testing issue as well. However, it is the opposite of
the issue you discussed in the previous article. Up until 2015, we were part of
a two-hospital system, but effective 1/1/2015, the partnership was ended and we
were spun off into a separate entity that is no longer part of the controlled
group of the prior entity . Previously, we participated in a 403(b) matching
plan with the other hospital; now, we have our own 403(b) matching plan that
was established 1/1/2015. The plan covers the same employees of our hospital
that it did previously, only under a new plan. My question is related to the
prior year average contribution percentage (ACP) for non-highly compensated
employees (NHCEs) that we would use for 2015 testing, as our new plan uses the
prior year testing method. I read somewhere that you can use an assumed ACP of
3% in the first year of a new plan. If this is true, this would be helpful
since the ACP of the NHCEs in the prior plan for 2014 is only 2%. Or would we
need to use the ACP of only the NHCEs of our hospital from the prior plan
results? Any guidance you can provide would be greatly appreciated!”Read more > |
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ASK THE EXPERTS
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Groom Law Group and Cammack
Retirement Group will field your
questions concerning 403(b) plans
and regulations. Email rebecca.moore@strategic-i.com with Subject
Ask the Experts
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