The New Limits for 2020

Our General Recommendations: Let your employees know the new 2020 401(k) and 403(b) deferral limits so they may decide whether to increase their payroll deductions accordingly. For Owners, consider increasing Compensation to $285,000 in order to increase their share of the Employer contribution. Please let us know if we can help you with this determination. […]

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The Importance of Census Data

Each year when we receive completed census and questionnaire information, b&co prepares an Annual Review for the Plan, which includes the required compliance testing; and certain required government filings, which may include the Form 5500 and Form 8955-SSA. The annual census data collection part of this process is a big pain for many of our […]

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Q&A: Cash Balance Plan

B&Co Consultants, John Beasley and Adele Weaver, sit down to talk about Cash Balance Plans – what they are and who can benefit from them. Check out this 3-minute video to learn more and please reach out to our firm if we can help talk to you about your specific needs and goals.

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Introduction to Nondiscrimination Testing: How to Stay Compliant

Because 401(k) plans provide significant tax benefits for Employers, 401(k) plans are subject to complex compliance tests that demonstrate the plan does discriminate in favor of owners and / or highly compensated employees. Plans must pass all compliance tests in order to retain their tax-qualified status. How to pass the tests? This article will introduce […]

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What To Do with Rehired Employees

When an employee terminates service, active participation in the plan ceases, but what happens if you rehire a former employee? When are they eligible to participate in the Plan? The answer to this question depends on your plan document and the rehired employees’ prior eligibility in the Plan. Sometimes the answer is immediately upon rehire! […]

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When to Deposit Participant Contributions and Loan Payments


Late deposits of participant contributions and loan payments can be costly to correct and may increase the chances of a Department of Labor (DOL) audit. Late deposits are considered a “prohibited transaction” subject to excise tax and may be considered a breach of fiduciary duty. The DOL has wide latitude to impose civil penalties.   […]

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Why a 401(k) Loan May Not Be a Good Idea


When a participant borrows against his/her retirement plan balance, investments are sold to generate cash to fund the loan. As a result, the participant is missing out on investment returns while the loan is outstanding. Paying yourself (i.e. your 401(k) account) interest on the loan is not an investment strategy. In fact, it can be […]

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Tips for Preventing Beneficiary Disputes and Liability

beneficiary disputes

Upon the death of a participant, it’s important to determine the rightful beneficiaries based on the deceased participant’s current beneficiary designation.  To prevent problems, here are some operational steps to consider: 1. Remind employees to update beneficiary designations periodically, particularly upon life-changing events. 2. Re-solicit updated designations from employees on a periodic basis. 3. Communicate a clear process […]

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