On the Summit CPA 401(k) Blog, we publish a blog a couple of days each week, to bring you helpful information that will assist you with your 401(k) Plan and administrative duties. Here are our top five posts last month:
- The Benefits of a 401(k) Plan. Everybody loves a tax break, right? Well, good news! You can cut your tax bill by taking advantage of pre-tax contributions to your employer’s 401(k) plan. That’s right. You can actually save on your tax bill and save a nice little nest egg for your retirement too. It gets even better, many employers will match a percentage of your contributions.
- Is a Fidelity Bond Required for a 401k Plan? As the sponsor of an Employee Benefit Plan (401k Plan) you are required by the Employee Retirement Income Security Act of 1974 (ERISA) to maintain what is called a “Fidelity Bond” for your plan.
- 120 is the Magic Number for 401(k) Plan Audits. If you’ve been tasked with managing the 401(k) plan at a growing company, and are unsure of whether or not you’re required to undergo an external 401(k) audit, there’s one number to keep in mind: 120. Find out why.
- What are 401(k) Forfeiture Accounts? If your 401(k) Plan has made employer contributions to your company’s 401(k) account, you may have built up amounts in an account called... “Forfeitures”. These forfeiture accounts hold the employer contribution amounts that accrue when an employee leaves the Plan and their account is not fully vested.... These forfeiture funds need to be used by the Plan as soon as possible, but only for the transactions allowed by the Plan Document. Usually, the forfeiture funds can be used to:...
- 401k plan Census-What is it? In the first part of any Plan Year, your record-keeper will routinely ask you to prepare or review something called a Plan Census. This document will contain information for each employee of the company including their...
At Summit CPA, we're passionate about changing the way people think about accounting and 401(k) Plans! We're a fully distributed company offering Virtual CFO Services, 401k Audits, and CPA Firm Augmentation. We hope you'll subscribe to our blog (below) if you'd like to connect with us and have our blog posts delivered directly to your inbox!