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BPM | Employee Benefit Plan Update
Our Employee Benefits team consists of professionals with extensive knowledge of ERISA guidelines and deep expertise performing employee benefit plan audits.

For a free expert consultation contact:

Jenise Gaskin
Partner, Assurance
(925) 296-1016

Mike Spence
Partner, Assurance
(408) 961-6303

Services Provided

Profit Sharing
401(k), 403(b)
Defined Benefit Plans
Health & Welfare Plans
Money Purchase

Consulting & Advisory:
Advisory & Fee Analysis
Plan Structure Review
Assistance in Preparing for Audit
Assistance with Self Correction Programs

Make the Change - IRS Expands Midyear Safe Harbor Plan Changes

Sponsors of safe harbor 401(k) plans now have more flexibility to make “midyear” changes to their plans, thanks to a policy change announced by the IRS. This article reviews the changes, outlined in IRS Notice 2016-16, which took effect January 29. Read more.

Court Dismisses Excessive Fee Charge - When Parties are Considered Fiduciaries

A U.S. Court of Appeals has denied a 401(k) plan sponsor’s effort to recover funds from its administrator based on an accusation that it had charged participants “excessive” fees. This article explains why the court rejected the plaintiff’s arguments and reminds plan sponsors to carefully scrutinize fee structures during contract negotiations. Read more.

Studies Support Pairing Auto-Escalation with Auto-Enrollment

Auto-enrolling 401(k) plan participants without also incorporating an auto-escalation feature might be a counterproductive exercise. Survey data suggests that average 401(k) plan deferral rates have been trending downward even though more employers are adopting auto-enrollment. The apparent culprit: low auto-deferral rates. This brief article highlights how to use both auto-enrollment and auto-escalation clauses to help benefit employees. Read more.

DOL Liberalizes Views on Economically Targeted Investments

The U.S. Department of Labor (DOL) has reversed guidance it issued in 2008 with respect to retirement plans’ allocating funds to economically targeted investments (ETIs) that consider environmental, social and governance factors. This article discusses the DOL’s about-face on this topic. Read more.


Upcoming compliance deadlines:

  • 6/30: Deadline for processing corrective distributions for failed actual deferral percentage/actual contribution percentage (ADP/ACP) tests from plans with eligible automatic contribution arrangement (EACA) without 10% excise tax.
  • 7/28: Summary of material modifications is due (210 days after the end of the plan year in which the amendment was adopted)
  • 8/1*: Form 5500 is due for calendar year plans or a request for an extension on Form 5558
  • 8/1*: Form 5330 to report excise tax on prohibited transactions and excess 401(k) plan contributions is due
  • 8/1*: Form 8955-SSA for calendar year plans to report separated participants with a deferred vested benefit
*These dates reflect an extension of the normal deadline, which falls over the weekend this year.
Burr Pilger Mayer, 600 California St., Suite 600, San Francisco, CA 94108
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