Auto-enrollment tax credit

What is the SECURE Act auto-enrollment tax credit? A $500 tax credit has been created for small employers who add an EACA to their retirement plan. The credit is available for 3 taxable years. What are the requirements to be an EACA? EACA stands for “Eligible Automatic Contribution Arrangement”.  The requirements to be an EACA … Read more

Are employer retirement contributions made during the PPP window forgivable?

Subject to limits on self-employed individuals and owner-employees, Nova believes that employer contributions made during the PPP window are forgivable. This would appear to apply to a wide variety of employer retirement contributions including matching, profit sharing, defined benefit and cash balance contributions. It is also possible this would apply to both the 2019 and … Read more

Nova 401(k) Associates acquires Pension Benefit Administrators

HOUSTON, TX, August 1, 2019 -Nova 401(k) Associates today announced the acquisition of Houston-based employee benefit consulting firm Pension Benefit Administrators (PBA).  This represents their third strategic acquisition. PBA, originally incorporated in 1974, has a team of seasoned pension professionals who average in excess of 20 years of experience and are led by Mike Vickery … Read more

Bipartisan Budget Act of 2018

The Bipartisan Budget Act of 2018 was signed on February 9, 2018.  The act contains disaster relief relating to the California Wildfires. Qualified Wildfire Distributions: An affected individual may take a distribution up to $100,000.  The additional 10% tax on early distributions imposed by Sec. 72(t) will not apply for qualified wildfire distributions.  Income inclusion … Read more

Hardship distribution relief for participants

The IRS has issued relief to make it is easier for participants to take hardship distributions from 401(k) plans.   The IRS has relaxed certain documentation requirements, but has not totally eliminated the need for documentation.  Relief is only available through January 31, 2018. Things that participants need to know: In order to take a … Read more

Who is a California wildfire affected individual?

Relief is extended to any participant whose principal residence and/or place of employment on October 8, 2017 was in one of the counties identified for individual assistance by FEMA because of the California wildfires.  It also allows participants who do not live in affected areas to qualify for relief if they have parent, grandparent, child, … Read more

Relief for 401(k) contributions and loan repayments

The Department of Labor (DOL)  recognizes that some employers and service providers acting on the employer’s behalf, such as payroll processing services, located in identified covered disaster areas will not be able to forward participant payments and withholdings to employee retirement benefit plans within the prescribed timeframe. In such instances, the DOL will not – solely on … Read more

Wildfire Form 5500 Relief

The Form 5500 deadline has been extended to January 31, 2018 for Forms 5500, Forms 5500-SF and Forms 5500-EZ that would have been due between October 8, 2017 and January 31, 2018.  This automatically extends the deadline for Summary Annual Reports and small defined benefit plan Annual Funding Notices. In order to qualify for relief, … Read more