Mike Zahariades

Revenue Procedure 2026-4  The IRS has increased the fees it charges for certain retirement plan filings, effective January 1, 2026. These fees apply when employers request IRS approval or correction of retirement plan issues. Most notably, the IRS raised the Voluntary Correction Program (VCP) fees, which are used when an employer voluntarily fixes plan mistakes. At every filing level, the IRS fee increased by $500. Fees for some other IRS retirement plan

What are the top heavy rules? In general, a defined contribution plan (i.e. 401(k), profit sharing, money purchase, etc.) is considered to be top heavy when more than 60% of plan assets are attributable to "key employees" as of the "determination date". Top heavy plans are subject to certain minimum contribution and vesting requirements. Who

Plan Compensation – Not So Simple! At face value, it seems like "compensation" would be one of the simplest issues to deal with in a retirement plan, but it is actually one of the most complex. Understanding what compensation is "plan eligible" is one of the biggest headaches for plan sponsors and an area in

IRS Provides Welcome Relief for Plan Sponsors! Mistakes happen! It is inevitable because the rules governing retirement plans are complex and always changing. The IRS Employee Plans Correction Resolution System (EPCRS) has done wonders in allowing plan sponsors to correct mistakes, often without seeking approval from the IRS, and avoid costly sanctions and fines. On

What fees and expenses can be paid for by a plan? In general, fees and expenses associated with the on-going administration of a retirement plan may be paid from plan assets provided they are necessary and reasonable. Certain expenses known as "settlor" expenses, however, cannot be paid for from plan assets. What is considered reasonable?

Deposit Rules for 401(k) Plans One of the most common mistakes made by 401(k) plan sponsors is failure to deposit participant contributions (i.e. 401(k) deferrals/Roth contributions) and loan payments in a timely manner. Having said that, it is worthwhile reviewing the rules and consequences of making late deposits. What are the rules? In general, the

On August 24, 2016 the IRS released Rev. Proc. 2016-47 providing a new “self-correction” program for taxpayers who miss the 60-day window for rolling over a distribution from an IRA or qualified retirement plan. Prior to this guidance, a taxpayer who was unable to complete a rollover within the required time frame could only qualify

When can a participant receive a distribution from a retirement plan while still working? It depends. A plan may (but is not required to) allow participants to receive in-service distributions. In addition, certain conditions must be satisfied which are set forth under the Internal Revenue Code, regulations and IRS guidance. Are the rules different depending

In January 2016, the IRS issued Notice 2016-16 providing long-awaited guidance on when changes can be made to safe harbor 401(k) plans mid-year. Previous IRS guidance (formal and informal) seemed to indicate there were only limited circumstances under which a safe harbor plan could be amended prior to the first day of the following plan

What is a fidelity bond? A fidelity bond is a special type of insurance that protects plan participants from the risk of loss due to acts of fraud or dishonesty by plan officials. Is a fidelity bond required for my plan? Generally, yes. With limited exceptions, all qualified plans (i.e. 401(k) plans, profit sharing plans,