Hunter Benefits Consulting Group

Post-PPA Best Practices

Post-PPA Plan Document Restatement Cycle 3 (2020 – 2022)
Required IRS Changes and Best Practices

IRS Required Changes

  • The IRS required that the Trust provisions be carved out into a separate document, so you will have both an Adoption Agreement and a Trust Agreement.
  • For Plans with a discretionary match, the IRS required that the Plan specify the allocation method and deposit schedule. To meet this requirement, the Plan now indicates a uniform percentage allocation method and year-end deposits.
  • Regulations require that “disability” be defined for 401(k) Deferral and Safe Harbor sources as a condition precluding gainful employment that can be expected to last for at least 12 months or result in death. If your Plan uses a different definition for other sources, we will change it to match so the definitions are consistent.

Best Practices

  • In order to facilitate Mandatory Distributions, the cash pay-out has been limited to $200. Amounts that are forced out between $200 and $5,000 are to be rolled over to an IRA.
  • Extended payment periods for death benefits will be included. This provision reduces the chance of penalties for payments not started timely, while also allowing for beneficiaries to elect a five-year withdrawal period.
  • Partial payments to terminated employees will be allowed in addition to lump sums.

What Our Clients Are Saying

I have always been very happy with your service. Always been very happy with your crew. Their response time is incredible. They get back to me immediately. They follow up. I don’t have to follow up with them. That’s one less thing I have to worry about."

Carol Weaver, Vice President, Asher Investments 3, LLP

You have really helped us out here and I really appreciate it. Super happy with our move to you guys!"

Jeff Uptmor, Stauffer CPA

I do like that there’s a very quick turnaround. It’s really quick."

Erin Chavis, Human Resources Director, Broadway In Chicago, LLC

So supportive and professional. I didn’t have to worry about it because I knew you were taking care of it."

Carol Weaver, Vice President, Asher Investments 3, LLP

The people are great. You guys really do a good job. They minimize the trouble a whole bunch. Tax returns get filed."

James Tatman, Chief Executive Officer, Webster Associates, Inc.

Do we make you look good to your boss? "yes." "You cover a lot of bases very efficiently."

Carol Weaver, Vice President, Asher Investments 3, LLP

Everything gets done. Your advice to add Roth was a great idea."

James Tatman, Chief Executive Officer, Webster Associates, Inc.

"I want to thank you and your team for all of the help over the years. I found you easy to work with and am pleased with the service I received."

Dr. McLain, Formerly owned Tomasetti and McLain Oral Maxillofacial Surgery, Ltd