5 Ways to Protect Sensitive Plan Participant Information
Consider these five simple ways to protect your 401k plan or 403b plan participants’ sensitive personal information. The 2021 Plan Sponsor's Desk Reference is full of information relevant to HR, accounting, and finance professionals responsible for administering 401k and 403b defined contribution plans.
IRS Extends Tax Deadline
The Internal Revenue Service announced today that the due date for individual federal income tax filing will be automatically extended from April 15, 2021 to May 17, 2021. Individual taxpayers can also postpone federal income tax payments related to 2020 to May 17, 2021 without penalties and interest.
PA Settles Natural Gas Royalties Lawsuit
The lawsuit claimed that Chesapeake had incorrectly deducted post-production gas processing expenses from landowner royalty checks. If you think your royalty check is lower than it ought to be based on your lease agreement, consider hiring a qualified CPA to inspect the books and records of the production company on your behalf. Leases may include provisions that if the production company significantly underpaid you, they also become responsible for your accountant’s and attorney’s fees to recover the underpayment.
Form 5500 and Plan Audits
Generally, employee benefit plans with 100 or more participants are required to submit audited financial statements when they file an annual return/report (Form 5500 series). A quality audit performed by an independent auditor helps protect plan assets and ensure the financial integrity of the plan.
Taxation of Coronavirus-Related Distributions
The CARES Act provided for “coronavirus-related” distributions from certain qualified retirement plans. Participants who chose to take advantage of the program could avoid the normal 10% early withdrawal penalty for distributions taken before age 59 ½ and spread the income over a three-year period for federal income tax purposes.