401(k) plans are highly regulated to protect the employees who use them. This thorough regulation also means the design, documentation and administration of the plans are rife with opportunity for mistakes. Some of these mistakes, depending upon who finds or reports them, are punishable with serious penalties. Here's a list to help in your compliance: 1. Not updating your plan document to reflect all applicable law changes. Federal tax law governing 401(k) plans change often. As the employer, you must be able to demonstrate that you have a written plan document and any necessary amendments to reflect all relevant tax law changes. You can get more information regarding 401(k) plans via www.cxcsolutions.com/compliance/401k. Image source:-Google 2. The plan implementation is not following the plan document. After ensuring you have not made mistake #1, it is still the employer's responsibility to make sure that all employees, vendors and tax professionals who service the plan follow the plan's current terms. 3. Not using the plan's definition of compensation correctly for all deferrals and allocations. This is complicated by the fact that plans often use different definitions of "compensation" for different plan purposes. 4. Failing the 401(k) ADP and ACP nondiscrimination tests. The amount of contributions made by and for NHCEs (non-highly compensated employees) must be proportional to contributions made for HCEs (highly compensated employees) such as owners and managers. This must be checked annually with the ADP and ACP nondiscrimination tests. To find mistakes, the IRS recommends an independent review to determine if you properly classified HCEs and NHCEs and accurately calculated the ADP and ACP nondiscrimination tests.
Do you get tired of junk cars taking up space? You can get rid of junk cars and make extra money by selling them. It's a great way of getting rid of useless cars by selling them for scrap or parts to an auto salvage yard that will pay cash. Junkyards will often sell parts to other car owners or repair shops for money. This is why they are willing to pay you cash for your junk car. These are five tips that you should follow before disposing of your junk car to get the best value. You can find the best tips for selling junk cars for cash from www.junkyardsnearme.net/. Establish Ownership The first step in removing junk vehicles is to locate the title. Without proof of ownership, most salvage and scrap yards won't buy the vehicle from you. Before you deal with these businesses, make sure that your name is on the title. Deliver your car Once you have agreed on a price, it is time to deliver your car. It is possible to tow your car yourself, as you are likely to get more money from salvage yards. You won't be allowed to sell your car without the title. Mileage tampering laws. Most lemon laws refer to mileage rollback as it is the most common method of sellers deceiving buyers. It is illegal to alter the car's odometer. Otherwise, you could be fined. You must notify the buyer if the odometer stops working and put it on the title. Lemon laws for private sellers: Private sales are treated differently from when a dealer sells cars. It is important to understand what constitutes a dealer in your state. For example, in Massachusetts, a dealer is someone who sells four cars within 12 months. The laws in effect at this point will be more severe.