9 May 2017 - Arizona, US-based third party administrator of qualified retirement plans
Pinnacle Plan Design, LLC has acquired Arizona, US-based actuarial consulting firm Kollman and Associates, Ltd.
A qualified retirement plan
is not required to make additional changes as a result of the decision.
Clients whose qualified retirement plan
assets contain appreciated employer securities may be eligible to take advantage of the net unrealized appreciation tax break.
An exodus of rank-and-file employees from the qualified retirement plan
to the HSA can limit the amount of tax-advantaged retirement funds that highly compensated employees can set aside.
For many other people, however, it is advisable to invest as much as possible in a qualified retirement plan
Even though qualified retirement plans
are subject to numerous pension law protections (namely, the Employee Retirement Income Security Act of 1974, more commonly known as ERISA), individuals often prefer not to leave their retirement funds under the control of an organization where they no longer work.
It also permits an employer to roll the assets from certain qualified retirement plans
(except 403(b) plans) to a new 401(k) plan.
For example, assume a CEP taxpayer has 25 qualified retirement plans
covering 50,000 employees employed among 25 different corporations and makes no election under the separate-line-of-business rule of section 414(r).
In these post-Enron days, trustees or other plan fiduciaries responsible for making investment decisions for qualified retirement plans
may be nervous about the fiduciary liability that could materialize as a result of a plan's investment in employer stock.
The ability to pay tax-free benefits makes this arrangement more tax beneficial than a qualified retirement plan
Qualified retirement plans
are designed to encourage employees to save money now, so they will have enough to sustain them when they are no longer working.