Coverage, Nondiscrimination, and Top-Heavy Testing
As a condition for receiving favorable tax treatment, employers sponsoring retirement plans must establish that the plan does not disproportionately benefit owners and other highly-compensated employees. Not only does The Pension Center of Florida perform all of the tests needed to demonstrate that the plan benefits an acceptable cross section of employees and is entitled to tax-advantaged treatment, we also make sure that contributions to the plan are fully optimized based on the client’s needs and goals.
Most plans are required to file an annual report with either the Internal Revenue Service (IRS), Department of Labor (DOL) or Pension Benefit Guarantee Corporation (PBGC). There are additional reports that must be filed on an as-needed basis. The Pension Center of Florida prepares all required filings using the electronic filing system (EFAST2).
Eligibility Determination Review
As part of The Pension Center of Florida’s annual testing and reporting services, we verify that the eligibility status of employees follows the provisions outlined in the plan document.
Processing Distributions and Loans
The primary benefit of a retirement plan is to provide income at retirement. There are several means of withdrawing money from a retirement account: required minimum distributions, hardship distributions, in-service withdrawals*, qualified domestic relations order (QDRO), retirement and termination of employment. *Some 401(k) plans allow loans, while others do not. Start by checking with your plan’s administrator to learn about withdrawal options. We assist clients with the preparation of all necessary forms to facilitate timely payouts.
The Pension Center of Florida compares payroll and recordkeeping reports to ensure that the plan’s records are accurate and consistent.
Plan Document Drafting and Maintenance
The Pension Center of Florida drafts customized plan documents, as well as applicable required and discretionary amendments.
Even the best-run plans can be selected for audit by the Internal Revenue Service (IRS) or the Department of Labor (DOL). We at The Pension Center of Florida are familiar with the audit process and will work with you to ensure that you are prepared to answer any questions that the auditor may have.
Plan Correction Services
We understand that juggling the tasks required to run a business is difficult, and mistakes can happen. Fortunately, the IRS and the DOL recognize this too and have created voluntary correction programs (VCP) to bring the plan back into compliance. While these programs, in and of themselves are complex, The Pension Center of Florida is experienced with both programs and can help you determine the best approach and plan of action. We often communicate directly with the IRS or the DOL on behalf of our clients to achieve the best-possible resolution.