It might not surprise you to hear that the IRS has some fairly complicated rules governing compensation levels and retirement plan contributions. In fact, the IRS reports that a good number of plan sponsors get this key issue wrong - a mistake that can cost both time and money.
This month’s newsletter takes a look at current IRS rules to help clear some of the confusion. Find out how bonuses, reimbursements and overtime affect reported compensation. Learn about pre-participation and post-severance compensation. And because a single newsletter can’t cover a topic as complex as this one, we invite you to give us a call. Let us help you navigate the complexities and stay compliant.
A boomerang employee (as we will use that name in this article) is, quite simply, one who leaves and then comes back to work…a rehire. As is so often the case, the retirement plan rules related to rehires are quite different than those that apply to other areas of employment and benefits. Whether rehiring a former employee is a rare occurrence or part of your regular course of business, it is important to understand how these rules work.