(Updated Dec. 4, 2009) by Douglas R. Chamberlain When facing financial difficulties, employees often look to their retirement plans as a possible source of needed funds. Many plans offer participant loans or permanent withdrawals, the latter generally on a hardship basis. However, plan loans and withdrawals can jeopardize the employee’s retirement benefits, and both are […]
The full Senate will soon consider a bill that would raise contribution limits for individual retirement accounts and 401(k) plans. The maximum annual contribution for 401(k) plans would increase from $10,500 to $15,000. IRA limits would rise from $2,000 per year to $5,000, and “catch-up” provisions would allow workers aged 50 and older to put […]
A pension plan with fewer than 100 participants is generally exempt from the complicated and expensive accounting and reporting requirements that apply to larger programs. But in response to recent reports suggesting that small pension plans are vulnerable to employer embezzlement and misappropriation of funds, the federal government has proposed new rules requiring you to […]
President Clinton’s 1999 budget plan contains new proposals to encourage small businesses to establish pension plans for their employees. Under the plan, employers would receive limited tax credits for up to 50% of certain administrative and retirement education expenses associated with new pension, 401(k), or payroll deduction IRA plans.