Do my 401(k) forms look different – YES they do!

ABGNCS has enhanced our forms for more automation!  Let's discuss some of the benefits of now having your retirement plan forms available online.

Quickly accessible.  You have 24/7 access to forms with the plan sponsor login, under the forms tab on the main page.

Pre-populated option.  When you select an employee, it populates all of their demographic information, eliminating many of the errors that could arise.  By having the forms prefilled, you can be sure we will know exactly what participant the form is for, without having to worry about illegible handwriting. In addition, distribution forms will pull the balance information, saving the sponsors and participants time and increasing accuracy.

Simplified navigation. The new forms have more defined sections, which make them easier to navigate.  With bolded titles and clearly labeled sections, we’re confident participants will have a much easier time completing these forms more accurately.

Clear delivery selections. Participants will find delivery options for distributions are clearer and easier to select. These are very important for your participants to be aware of.  Delivery options include:

• Standard delivery – This means the distribution check will be sent through the United States Postal Service.  This could take 7-10 business days to receive. 
• Overnight delivery – Once the check is requested from the trust company it will be sent overnight to your selected destination.  There is an additional fee of $20.00 for this service.
• ACH/Direct Deposit – This will be direct deposited into the selected account.  There must be a voided check included to have direct deposit.

We are continually looking for ways to streamline our forms and improve the user’s experience. When using online forms, you will always be sure you are receiving the most current balance and fund information and accessing the most up to date improvements.

Enhanced Forms

• Enrollment / Election Forms 
• Rollover Forms
• Distribution Forms
• Hardship Forms
• Loan Application
• Fund Change Form
• Beneficiary Form

We encourage you to go out to the plan sponsor website and take a look at the updated forms.  As always, please let us know if you have any questions!

The Authors from our Retirement Team:

Abbey Hullopeter, Client Support Associate
Amber Sorenson, Account Manager
Brittany Miller, Account Manager

abgncs.com

2014 Year End Processing Deadlines for Retirement Plans

As 2014 comes to a close, our retirement plan administration department would like to thank you for your continued partnership and remind you of the important deadlines for processing your payroll contributions and distributions.

Here are a few important dates to keep in mind to ensure your last payroll files of 2014 are processed in time to reflect on the December 31, 2014 valuation. Please have electronic information to us by December 26, 2014. The dollars for these contributions must be received at the investment company prior to December 30, 2014. If we ACH the money for your account, we need to receive your file by Noon Central Time (CDT) on December 26, 2014.

Submitting Your Final Payroll
When submitting your final payroll file of 2014, please take note of the pay period end date. It’s very possible it could reflect a January 2015 date, as not all pay schedules will end on 12/31/2014. If you notice a 2015 end date but would like your contributions processed in 2014, please feel free to contact us prior to submitting the file and we will be more than happy to modify that date to ensure your file is processed in the correct plan year.

Bonuses
Bonus payroll files are just as important and require the same amount of attention as a regular payroll. Please contact us so we can open additional pay schedules and assist you in getting these files uploaded and processed in a timely manner.

Happy New Year
As the year ends, we think about all we are grateful for. Our relationship with you is one thing we treasure. Thank you for the opportunity to serve you. We wish you a happy holiday season and much success in the New Year.

The Authors: Corrine Mattson and Amy Newman

abgncs.com/RetirementAdministration

cmattson@abg-mn.com

anewman@abg-mn.com

Disclaimer: This blog is of an informative nature and should not be taken as advice. Please work with the appropriate parties for those services.

Timely Retirement Plan Deposits are the Key to Meeting Safe Harbor Guidelines

Are you depositing your employee deferral and loan payments into your retirement  plan on a timely basis?

What do you mean timely? 

The Department of Labor (DOL) safe harbor guidelines define “timely” as within 7 business days of withholding these payments from employees’ paychecks. These safe harbor guidelines apply only to plans with fewer than 100 participants on the first day of the plan year. 

The DOL has not specifically addressed plans with more than 100 participants. A couple of examples we have seen them use during an audit is to review the timeframe in which deposits are normally made or to review how fast a plan sponsor is able to remit other types of payments, such as federal tax withholdings. This is often only a couple days after the payroll date.

Salary deferral contributions and loan payments that are not deposited within the safe harbor guidelines are considered late deposits. The employer must make up earnings on the late deposits, file Form 5330 with the IRS along with payment of an excise tax, and report the late deposits on Form 5500 (which can be a trigger to cause a DOL audit for the plan). 

How can this mistake be avoided?

Coordinate with your payroll provider to set up procedures to ensure that the deposits are made timely.

Are there any other options? 

Employers who believe that they will not always be able to deposit salary deferrals and loan payments to a plan investment account within 7 business days should consider opening a plan checking account. Salary deferrals and loan payments should be deposited to the plan checking account immediately following each pay date and then transferred to the investment account at a later date. Keep in mind that employee funds should not be held in a plan checking account for an extended period of time but should be transmitted to the investment account as soon as possible.

If you have any further questions, please contact your plan’s Account Manager at 1-800-898-9344. 

The Author: Angie Krueger, CPA/QKA

Account Supervisor - Retirement

abgncs.com

akrueger@abg-mn.com

Disclaimer: This blog is of an informative and educational nature, and should not be considered legal, financial or operational advice. Please contact the appropriate parties for those services. Thank you.