Articles

Rabbi Trusts and Changes in Control Situations

Employers who maintain non-qualified deferred compensation plans or other supplemental employee retirement plans for their senior executives and other highly compensated employees may want to consider establishing a “rabbi trust” (so named because the first such arrangement was established by a synagogue to provide deferred compensation to its rabbi).

Stay on Track with Required Minimum Distributions

Do you know which of your former employees who still have savings in your retirement plan are turning 70½ this year? Or how many are older than that? Or how many accounts in your plan are held by beneficiaries? These individuals are required by law to withdraw money from your retirement plan each year. As a plan sponsor, you need to keep track of birthdates and beneficiary ownership, so you can make certain that plan distributions are being made properly.

Finding and Fixing Common Plan Mistakes

To err is human. Even the most organized and meticulous plan sponsors can make mistakes, as can the countless others they rely on to help them administer their plans and process plan transactions. 

Tax Reform: A Deeper Dive into Amended Section 162(m)

This article addresses recent tax law developments affecting non-qualified deferred compensation plans sponsored by publicly traded corporations and non-public organizations that are required to file statements with the Securities and Exchange Commission. 

The Purchase of BOLI Post Tax-Reform

For many decades, banks of all sizes have used bank-owned life insurance (BOLI) as an effecient tool for offsetting employee benefit cost. Today, over $189 billion of BOLI resides on U.S. bank balance sheets.1

Update: Hardship Distributions for Damaged Residences 

Recently enacted federal tax legislation made a change to the types of personal casualty losses that qualify for a casualty deduction under Section 165 of the Internal Revenue Code. Starting in 2018, only casualty losses attributable to a federally declared disaster will be deductible. This change will be in effect from 2018 through 2025 and immediately affects many 401(a), 401(k), and 403(b) plans that allow for hardship distributions.

Federal Reserve Board Releases Stress-Test Scenarios for 2018

Thirty-eight of the largest banking institutions in the United States will be subject to the Federal Reserve’s 2018 Comprehensive Capital Analysis and Review (CCAR) – up from 34 in 2017.

Tis the Season: Year-End Testing Often Requires Corrective Action

Each year, 401(k) plans must pass a series of nondiscrimination tests to ensure that the company owners and key personnel are not benefitting disproportionately compared to lower paid employees.

Tax Reform Recap

On December 22, 2017, President Trump signed into law the major tax reform bill known as the “Tax Cuts and Jobs Act.”  Now the hard work is beginning. 

2018 Budget Act Contains Retirement Provisions

The Bipartisan Budget Act of 2018 (the “Act”) was enacted on February 9, 2018.  The Act includes a number of provisions that will affect qualified retirement plans.

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Newport Group, Inc. and its affiliates provide recordkeeping, plan administration, trust and custody, consulting, fiduciary consulting, insurance and brokerage services. Fiduciary consulting services are provided through Newport Group Securities, Inc., an SEC-registered investment adviser and FINRA-registered broker-dealer, and InterServ, LLC, an SEC-registered investment adviser. Newport Group Securities, Inc. and InterServ, LLC are affiliates of Newport Group, Inc. All securities transactions are provided through Newport Group Securities, Inc., in its role as broker-dealer. All fiduciary consulting services are provided through the registered investment adviser. when offering variable insurance products, Newport Group Securities, Inc. acts solely in its capacity as a broker-dealer.
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