White Papers

Hiring an Independent Fiduciary for a 401(k) Plan Company Stock Fund

Common Questions from Plan Sponsors and Plan Committees

The Growing Dilemma: Debt and Financial (In)security in the United States

Personal financial stress in the United States continues to create concern and awareness of economic instability. What makes up the debt and how does it differ from the past?

Rabbi Trusts

Employers that sponsor non-qualified deferred compensation plans may choose to set aside funds in order to create a pool of assets that can be used to pay benefits that have been promised to executives.

Student Loan Benefit Program

This white paper examines IRS Private Letter Ruling (PLR 201833012), issued May 22, 2018. In the PLR, the IRS ruled that a student loan repayment (“SLR”) program included in an employer-sponsored 401(k) plan did not violate the “contingent benefit” prohibition of Code Section 401(k)(4)(A).

Multiple Employer Plans: A Low-Cost Retirement Plan for Your Small Business Clients

According to the Department of Labor (DOL), as of March, 2018, approximately 85% of businesses with 100 or more employees offer an employment-based retirement plan. However, only 53% of businesses with fewer than 100 do so. 

 

Combining Defined Benefit and Defined Contribution Plans

Creative plan design can help reduce expenses and achieve contribution goals for owners.

Terminating and Liquidating a Non-Qualified Deferred Compensation Plan

Section 409A of the Internal Revenue Code of 1986, as amended (the "Code") requires deferred compensation to be paid under written agreements specifying both the time when payments commence and the form of payment. Section 409A prohibits earlier payment under an "anti-acceleration" rule. 

Focus on Compliance: Timing of Bonus Deferral Elections

Internal Revenue Code Section 409A (“IRC 409A”) requiresthat elections to defer compensation be made only at specified times. An election to defer compensation that is made later than permitted under IRC 409A is not valid, and would preclude the intended deferral of income.

Focus on Compliance: Mid-Year Enrollments

Internal Revenue Code Section 409A (“IRC 409A”) permits employees who first become eligible to participate in a non-qualified plan during the middle of the year to enroll within 30 days of initial eligibility. This rule may be beneficial to employees who are first hired in – or promoted to an eligible position during the middle of a tax year. However, care must be taken to ensure the rule is properly applied.

Focus on Compliance: Expatriates

Multinational corporations frequently transfer employees to work in foreign countries for extended periods. Expatriation raises questions regarding the employee’s status as a participant in the company’s non-qualified deferred compensation plan. Legislation adopted in 2008 (the Heroes Earnings Assistance and Tax Relief Act) may also require that deferred compensation benefits be included in income on the expatriation date.

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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 Newport Group Consulting, LLC, an SEC-registered investment adviser. Newport Group Securities, Inc. and Newport Group Consulting, 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 advisers. When offering variable insurance products, Newport Group Securities, Inc. acts solely in its capacity as a broker-dealer. Trust and custody services provided by Newport Trust Company, a New Hampshire state chartered trust company and wholly owned subsidiary of Newport Group, Inc.