Below are some examples of plan document errors. If a 401(k) plan sponsor has a plan document error, the plan sponsor should work with their 401(k) TPA or 401(k) provider to resolve the situation. In many cases, it is also necessary to engage an ERISA attorney.
Problem #1(cont): Missed amendments and restatements
If an employer realizes that they failed to sign a required amendment or restatement, the employer’s best course of action is to promptly file a VCP application with the IRS. The IRS does not provide for self-correction of plan document failures. For many plan document failures, the IRS allows plan sponsors to do a streamlined filing which generally reduces the professional fees associated with preparing the filing. Additionally, the IRS’s turnaround time on streamlined filings is pretty quick. The IRS VCP fee associated with a plan document failure depends on the type of failure and when the failure is corrected. The starting point is the general IRS VCP fee in Rev. Proc. 2008-50, which depends on the number of
Problem #1 (cont): Signing the Plan Document
It sounds easy. It does not seem like the kind of thing that anyone would mess up. It only takes a few minutes. But, experience tells us that people somehow get it wrong all the time. What simple task are we talking about? Signing 401(k) plan documents! Here are Nova 401(k) Associates’ tips to help with this seemingly simple task and make sure that you keep your plan document up to date.
Will we have a dedicated account manager?
In the sales process, an employer may or may not meet anyone from the 401(k) TPA’s office. If the employer does meet someone from the TPA, it is often the TPA firm owner or a polished salesman with good hair. But, after the plan is an established client of the TPA firm, who will the employer talk to when they have questions? The TPA firm will probably be available for escalated issues, but not for day to day questions. The salesman will be on to the next prospective client. TPA firms typically use one of two service models: a team approach or a dedicated account manager.
Star the Nova 401-canine
Snoopy. Marmaduke. Spuds MacKenzie. Lassie. Unforgettable names for memorable dogs. And, now, Star the Nova 401-canine. The winning entry was submitted by Michael Fisher. While there were many great entries, Nova 401(k) Associates felt that this simple name appropriately transitioned from our past star-shaped logo to our new branding. Additionally, we feel that our staff … Read more
Final JBEA regulations
Cash balance plans and defined benefit plans are generally required to have an enrolled actuary sign the Form 5500 Schedule SB annually. The enrolled actuary certifies that the plan has met its minimum funding requirements and the plan’s adjusted funding target attainment percentage. On May 2, 2011 new regulations issued by the Joint Board for … Read more
Introduction to Actuarial Ethics
In the evening of April 25, 2011, Karen Smith of Nova 401(k) Associates along with Gloria Lesmeister of Buck Consultants and Chris Norman of USAA spoke to aspiring actuaries at the University of Texas at Austin on actuarial ethics. The students are part of the actuarial studies program at UT. For the last several years, … Read more
Hooker Invited to Serve on Prestigious TPA Advisory Council
MEDIA CONTACTs: Russell J. Hooker, russ@nova401k.com, 713.881.9313 and Terri Hale, hale.terri@principal.com, 515.283.8858
Hooker Invited to Serve on Prestigious TPA Advisory Council
Select group provides insight on third party administrators to the Principal Financial Group
Houston, Texas – The Principal Financial Group announces Russell J. Hooker and Nova 401(k) Associates has been invited to serve on its Third Party Administrator (TPA) Advisory Council for 2011. Hooker joins a panel of nine other select TPAs from across the nation who will provide input to The Principal on key trends and regulatory issues impacting TPAs and their clients. “Russell has extensive expertise and experience in the retirement plan industry,’ said Doug Grove, vice president and national sales director for retirement and investor services at The Principal. “We are delighted to welcome Russell to our advisory council, which plays a vital role in shaping the resources we make available to help TPAs manage and grow their businesses more efficiently.” Members of the TPA Advisory Council are considered leaders and experts in their field. The council’s real world experience helps guide The Principal in expanding and improving its flexible platform of tools, services and pricing designed to help TPAs be more competitive.
Nova 401(k) Associates Makes a Strategic Hire
Houston, TX, April 25, 2011
Nova 401(k) Associates has added another sales representative with a hefty resume to its team, expanding its sales force in Texas to five. Sadie Gensler-Hooker will assist advisors and plan sponsors with plan design, compliance, and administration of both defined contribution and defined benefit plans.
The TPA was able to convince yet another sales person to leave a big corporate player and join what is becoming one of the most formidable sales teams of any provider, TPA or otherwise in Texas. Sadie comes to Nova 401(k) Associates from Principal Financial Group, following Jerry Lopez and Steve Hale, who both left Schwab last year to join the firm.
Surveyor Versus Surveying Consultant
Although ERISA Section 4021(c)(2) defines the professional service employer, and ERISA Section 4021(c)(2)(B) provides a non-exclusive list of professionals, PBGC coverage status for a defined benefit plan or cash balance plan might still be unclear.