401(k) History
The year ERISA was enacted.
What is 1974?
Personal use of a company car, relocation allowances and gift cards are examples of this type of compensation.
What are taxable fringe benefits?
This is the foundational section for all qualified retirement plans, including 401(k)s, establishing the general requirements for tax-qualified status.
What is 401(a)?
You may know him from The Italian Job, The Departed or Ted.
Who is Mark Wahlberg?
A federal law that sets minimum standards for most voluntarily established retirement and health plans in the private sector to protect participants.
What is ERISA (Employee Retirement Income Security Act)?
The 401(k) was originally intended to be a supplement to what type of existing retirement plan?
What are pension plans?
Sole proprietors, partners, and certain LLC members have THIS in common.
What is earned income?
This section sets the annual limits on the amount of elective deferrals an employee can make to a 401(k) plan.
What is 402(g)?
Billy Madison, Happy Gilmore, The Waterboy... just to name a few.
Who is Adam Sandler?
A 2001 U.S. tax law that made major changes to tax rates and retirement plans. Key provisions included cutting income tax rates, increasing IRA contribution limits, creating "catch-up" contributions for older workers, and phasing out the estate tax. These changes were originally scheduled to expire after 2010 but were extended.
What is EGTRRA (Economic Growth and Tax Relief Reconciliation Act)?
The Economic Growth and Tax Relief Reconciliation Act of 2001 introduced this new feature for older employees.
What are catch-up contributions?
This type of compensation is never counted as eligible plan compensation.
What is severance pay?
Governs contributions based on employee contributions and matching contributions.
What is 401(m)?
She won the Academy Award for Best Supporting Actress in "Fences"; was nominated for her role in "The Help" and won an Emmy for Lead Actress in "How to Get Away with Murder".
Who is Viola Davis?
The IRS program that allows plan sponsors to voluntarily correct the occasional mistakes that can happen in the complex world of maintaining a retirement plan.
What is EPCRS (Employee Plans Compliance Resolution System)?
This major change to 401(k) plans came with the SECURE Act of 2019.
What are LTPT's?
These types of non-recurring compensation are always counted as plan compensation unless specifically excluded by definition in your plan document. (answer includes 3)
What are bonuses, over-time and commissions?
Limits the overall amount of annual additions that can be allocated to a participant's account.
What is 415?
This celebrity became catch-up eligible this year; you may know her from The Cider House Rules, Monster, The Italian Job or Mad Max: Fury Road.
Who is Charlize Theron?
A single plan that covers the employees of two or more unrelated companies.
What is a MEP (Multiple Employer Plan)?
He is often credited as the "father of the 401(k)" for creating the first plan in 1981?
Who is Ted Benna.
This type of payment to a business owner from a subchapter S corporation is generally not considered earned income for retirement plan purposes.
What is a dividend?
Section _____ allows for some disparity in favor of HCEs under certain conditions, which is often referred to as "permitted disparity" or "integration."
What is 401(a)(4)?
She won best actress for Erin Brockovich.
Who is Julia Roberts?
A distinct part of a company that can be tested for retirement plan compliance on its own, separate from the rest of the business.
What is a QSLOB (Qualified Separate Line of Business)?