Employers who sponsor and maintain retirement plans on behalf of their employees and who engage investment advisors to provide investment-related advice to participants may take comfort in knowing there is a new prohibited transaction exemption under the Employee Retirement Income Security Act of 1974, as amended (“ERISA”) and the Internal Revenue Code (the “Exemption”) designed
prohibited transaction
COVID-19 And Late Remittances of Employee Deferrals to 401(k) Plans
By Adam B. Cantor on
Many employers facing economic challenges because of COVID-19 have considered several possibilities for reducing their contributions to their 401(k) plans. Whether freezing safe harbor matching or nonelective contributions or deciding against making discretionary matching and/or profit-sharing contributions, the goal has been the same: reduce their employee benefits costs.
What many employers have not focused on…