Caron Bletzer News

Accounting Pronouncement: ASU No. 2018-13

During 2018, FASB issued accounting standard update 2018-13 that is effective for plan years beginning after December 15, 2019, with early adoption permitted. This update relates to fair value measurement and its purpose is to help improve the footnote disclosures for the users of the financial statements. The changes prescribed in this update most likely to impact retirement plan financial statements include:

  • Disclosure of the adoption of the accounting pronouncement, if applicable
  • Elimination of the...

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Importance of Plan Oversight

Being a plan sponsor comes with a responsibility to fulfill certain fiduciary responsibilities when administering their retirement plan(s). Although some of these may be outsourced through a 3(16), 3(21) or 3(38) relationship with a service provider, this does not fully free the plan sponsor from meeting their fiduciary responsibilities. When services are outsourced, the plan sponsor should establish procedures to monitor the work of their service providers and review the fees paid from...

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New Partial Plan Termination Relief Provided by Congress

Many companies faced turbulent times during 2020 due to the unexpected impact on their businesses from COVID-19. As a result, many companies were forced to temporarily or permanently layoff or furlough employees during the year. Typically, plan sponsors would assess the facts and circumstances of significant turnover to determine if a partial plan termination has occurred for their retirement plan. However, Congress has recently provided temporary partial plan termination relief to Plan Sponsors....

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How to Prepare for a Retirement Plan Audit

Whether your retirement plan has previously been audited or this is the first year your plan is requiring an audit, there are some helpful items your team can pull together prior to the plan audit:

  • Were there any changes to the Plan or the Company during the year that should be communicated to your independent auditor, such as a payroll conversion or custodian transfer? Were there any issues your team ran into during the...

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Caron & Bletzer Community Initiatives

This year, the Caron & Bletzer team took to our community to help spread a bit of holiday cheer to local families. Our enthusiastic team collected food and monetary donations to contribute to the Kingston, NH food bank. In addition, we donated Market Basket gift cards to local families so they could enjoy a Thanksgiving meal together. Lastly, we played Santa Clause and bought gifts for local children as part of the Kingston...

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Things for Plan Sponsors to Consider as the Year Winds Down

During 2020, there have been immediate and upcoming changes for the retirement plan industry that have affected and will continue to affect the plan operations. In addition to these changes, there are routine matters that Plan Sponsors will need to address before year end. Below are some things to consider as the year winds down:

  • Have you made the timely disclosures to plan participants, such as the 404(a) fee disclosures or the Summary Annual...

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Considerations While Wrapping up the 2019 EBP Audit Filings:

As plan sponsors are wrapping up their employee benefit plan filings and finalizing plan audits with their independent auditors, there are some things that should be considered related to subsequent event disclosures:

  • Did the plan sponsor encounter significant layoffs, terminations, etc. that may result in a partial plan termination?
  • Has there been a change in the financial status of the Company that may affect the ability of the Plan to continue as a going concern?
  • Has...

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Delay in Effective Date of SAS 136

The AICPA has made the decision to delay the effective date of SAS 136 (Forming an Opinion and Reporting on Financial Statements of Employee Benefit Plans Subject to ERISA) to be effective for periods ending on or after December 15, 2021. However, early implementation of this standard is permitted. The new SAS results in changes to the ERISA reporting standards to more clearly define the auditor’s role and work performed for the audit....

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2018 Retirement Plan Limit Increases Announced

On Thursday, October 19th, the IRS announced new statutory limits for the upcoming 2018 year. The most important changes applicable to retirement plans are outlined below. After holding the line for a couple of years, the IRS increased the employee elective deferral limit (the §402(g) limit) from $18,000 to $18,500, for contributions to 401(k) and 403(b) plans.  The same limit applies for most 457 plans.  The catch-up contribution limit for employees over age 50 remains unchanged...

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ERISA Benefit Plan Auditor Market Share: New England

ERISA Benefit Plans of New England 6,080 ERISA benefit plans in the New England region plans obtained audits. Caron & Bletzer led the pack with 377 audited plans, and PwC was not far behind with 291 plans. Source: Read More »