October 21, 2011 – 8:16 am
The IRS recently released the October interest rates for pension plans. What do they hold in store for plan sponsors? This post summarizes some of the important rates along with our observations. Funding Segment Rates The interest rates used to determine pension plan liabilities for IRS funding purposes are composed of three segment rates (unless […]
October 20, 2011 – 11:53 am
The IRS just announced the 2012 retirement plan benefit limits and we’re finally going to see some (very) modest increases after 3 years of flat rates. What does it all mean for employer-sponsored retirement plans? This post analyzes the practical effects for both defined contribution (DC) and defined benefit (DB) plans, followed by a table […]
By Mark Schulte
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Posted in 401(k) plan, Cash balance plans, Defined benefit plans, Defined contribution plans, Private pensions, profit sharing plan, Public pensions
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Tagged 401(k), 401(k) plan, cash balance plan, pension, pension plan, profit sharing plan, qualified plans, qualified retirement plan, retirement deduction
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October 19, 2011 – 11:10 am
We often hear the question “why should I contribute to a qualified retirement plan if tax rates might go up”? Good question; here’s why: you’ll probably end up with more money after tax. That’s true even if tax rates go up in the future. How much more you’ll end up with depends on your investment […]
October 13, 2011 – 9:29 am
IRS Notice 2011-85 announces the relief and postponed effective date for several items related to hybrid pension plans (e.g., cash balance and PEP plans). The notice is pretty technical (of course), but the IRS also published a nice summary of what’s affected by the relief. Here’s what it means for plan sponsors: The scope of […]
October 12, 2011 – 4:06 pm
Nonqualified deferred compensation plans are a common feature of executive pay packages. They’re a great choice in the right conditions, i.e. when: The executive’s share of company profits is very small, and The executive is willing to shoulder the employer’s credit risk, and Providing the benefits through a qualified plan would be too expensive. But […]
October 7, 2011 – 7:45 am
Many successful companies (especially professional firms like medical groups and law firms) are considering whether to increase retirement plan deductions for 2011. This post highlights the action steps to take while there’s still time. Note: We’ll be focusing on cross-tested profit sharing plans and cash balance plans. These plans allow owners to make large tax-deferred […]
