Articles for: Defined Contribution
Can we allow rollover contributions by new employees?
Yes. A plan can allow for rollover contributions to be made. This can be limited to just those employees who are participants or the plan can allow any employee who [...]
Key words: 401k,Defined Contribution,rollover
A participant wants to pay off one 401(k) loan and take another. What is the process?
In order to pay off a loan, it must first be determined what the payoff amount would be. The amount of the payoff equals the principal amount outstanding plus any [...]
Key words: 401k,Defined Contribution,loans,payoffs
How do I transition from a pension to a 401(k) plan?
A defined benefit (pension) plan sponsor who is considering transitioning to a defined contribution plan, such as a 401(k), 457 or a 403(b), begins by analyzing the impact of the [...]
Key words: 401k,403b,457,Defined Benefit,Defined Contribution,Pension
Why Does Moving From A Defined Benefit to Defined Contribution Often Result in Benefit Cuts?
Let’s assume that a defined contribution (DC) plan has been designed with the same level of employer contribution as a defined benefit (DB) plan the employer previously sponsored. A common [...]
Key words: Defined Benefit,Defined Contribution
Why switch from a Defined Benefit to a Defined Contribution as the primary retirement plan?
Generally, an employer’s primary objective in switching from a defined benefit (DB) plan to a defined contribution (DC) plan is to reduce the company’s risk exposure. While the employer still [...]
Key words: 401k,Defined Benefit,Defined Contribution