The CalSavers Program applies to employers that do not maintain a retirement plan. It automatically enrolls eligible employees in a state-managed system of Roth IRA accounts. June 30, 2021 is the deadline by which employers with 51 to 100 California employees must either establish that they are exempt from CalSavers (for instance, because they have their own plan) or enroll in the program. Employers with more than 100 California employees were required to enroll by September 30, 2020. Although under legal attack for some time, on the grounds that the federal benefits law, ERISA,…Keep reading
On April 27, 2021 the IRS supplemented its online FAQs on COVID-19 relief for retirement plans and IRAs with information related to relief from partial plan terminations. Under Division 33, Section 209 of the Consolidated Appropriations Act of 2021 (CAA), a plan is not treated as having a partial termination during any plan year which includes the period beginning on March 13, 2020, and ending on March 31, 2021, if the number of active participants covered by the plan on March 31, 2021, is at least 80% of the number of active participants…Keep reading
If your business sponsors a “solo 401(k)” plan, it may be in the crosshairs of the Internal Revenue Service. The Service’s TE/GE (Tax Exempt and Government Entities) division has identified one-participant 401(k) plans as among its current audit initiatives. In its web posting announcing the initiative, TE/GE states: “[t]he focus of this strategy is to review one-participant 401(k) plans to determine if there are operational or qualification failures, income and excise tax adjustments, or plan document violations.” By way of background, a solo 401(k) plan is a traditional 401(k) plan covering a 100%…Keep reading
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Christine P. Roberts
Mullen & Henzell L.L.P.
phone: (805) 966-1501