GA April 2021 Newsletter

  • VOLUME XLII | NUMBER XXXIX | April 2021

    • 401(k) Plan Tax Credit Summary

      Eligible employers may be able to claim a tax credit of up to $5,000, for three years, for the ordinary and necessary costs of starting a SEP, SIMPLE IRA or qualified plan (like a 401(k) plan.) A tax credit reduces the amount of taxes you may owe on a dollar-for-dollar basis. If you qualify, you may claim the credit using Form 8881 PDF, Credit for Small Employer Pension Plan Startup Costs. Eligible employers: You qualify to claim this credit if: • You had 100 or fewer employees who received at least $5,000 in compensation from you for the preceding year; • You had at least one plan participant who was a non-highly compensated employee (NHCE); and • In the three tax years before the first...

       

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    • Retirement Plan Committee Activities

      A retirement plan committee consists of co-fiduciaries who are responsible for all plan management activities that have been delegated to them by their plan’s named fiduciary. ERISA states that the committee must act exclusively in the best interests of plan participants, beneficiaries and alternate payees as they manage their plan’s administrative and management functions. Many committees meet regularly in order to have sufficient opportunity to deal with the myriad of fiduciary functions. All fiduciary level decisions must employ ERISA’s procedural prudence which includes documented expertise on the topic being considered and periodic review to ensure the decision remains prudent. In terms of investment selection and monitoring, qualitative and quantitative considerations should be included in the decision-making process. Quantitative issues involve performance metrics and price, while...

       

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    • Participant Memo: April 2021 – Three Tax Tips that Can Help as You Approach or Begin Retirement

      Retirement is a whole new phase of life. You’ll experience many new things, and you’ll leave others behind – but what you won’t avoid is taxes.

       

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