Retirement

Tax

IRS Warns Business Against Abuses Involving ESOPs and S Corporations

The Internal Revenue Service has issued letters to approximately 1,700 businesses and retirement plan sponsors alerting them to new income and excise taxes applicable to S corporation employee stock ownership plans (ESOPs) and warning of the consequences of participating in abusive schemes involving ESOPs and S corporations. The letters are being mailed to S corporation ESOPs reporting 10 or fewer participants.
Community News

IBM Scraps Pension Plan for New Hires in Favor of 401(k)

In a surprising announcement that may have a ripple effect throughout corporate American, International Business Machines Corp. has stated that as of January 1, 2005 it will no longer offer its cash-balance pension plan to newly hired employees.
Community News

Employers Seek Consultants Without Conflicts of Interests

The Securities Exchange Commission (SEC) received support from the nation's employers in its investigation into conflicts of interest among the consultants that servetheir employee retirement plans, a newly released survey by PLANSPONSOR shows.An overwhelming majority of 85 percent of so-called plan sponsors - employers who sponsor employee retirement plans - said it is 'extremely important' that their consultants are free of conflicts of interest.
A&A

401(k) Loans Boost Business Startups

When seeking money for their startup business many entrepreneurs are turning to the Solo 401(k) to get a loan.Solo 401(k) retirement plans with a loan feature first became available in 2002 as a result of tax law changes that lifted restrictions on business owners getting a loan from their 401(k) plan. This change is important because in most cases when one withdraws money from a retirement account prior to age 59 ½ they are hit with a 10% tax penalty on top of the regular income tax.
Tax

IRS Approves Automatic 401(k) Enrollment

Companies that offer 401(k) plans are becoming more aggressive about automatically enrolling employees in the wake of an Internal Revenue Service blessing on the practice, as long as employees are aware of what is occurring.While 401(k) plans have been long considered among the best retirement preparation tools, millions of eligible workers are not taking full advantage of the programs, the Sun-Sentinel reported.Some start with good intentions by committing a percentage of their pay to the savings plans but never increase the contribution as their pay increases.
A&A

Most Americans Don't Have the Right Plan for a Financially Secure Retirement

A Retirement Income Flexibility study commissioned by Golden Retirement Resources, Inc., creator of RetireMentor®, an integrated retirement income planning and management system, found that 64 percent of Americans are trapped by retirement plans that don't allow them to make adequate adjustments to their investments in response to market pressures or life changes.

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