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Our Top Five 401(k) Blogs for May 2020

Published by Kim Moore on Jun 23, 2020 6:00:00 AM

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:

  1. 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 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.

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  2. 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.

  3. 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.

  4. Is a Fidelity Bond Required for a 401(k) Plan? As the sponsor of an Employee Benefit Plan (401(k) 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.
  1. Full Scope vs Limited ScopeWhen you own a business that offers employees a 401k or other retirement plan, it’s a good bet that there may be an audit in your future. The question is, what kind of audit will be needed for your plan? Will you need a full scope or a limited scope audit for your plan?

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!Get a FREE 401k Audit Consultation

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