Learn more about key year-end tax strategies for businesses, with guidance shaped by recent law changes and future planning opportunities.
Learn more about key year-end tax strategies for individuals and families, with guidance on current laws and upcoming changes expected in 2026.
Recent changes under the OBBBA present new opportunities for donors to enhance the impact of their charitable giving. Discover how these pivotal changes can influence donor strategies and support more tax-efficient philanthropy.
The OBBBA has reshaped the timeline for energy-related tax credits, with some already expired and others set to sunset soon. Staying informed and acting quickly can help taxpayers preserve access to these benefits.
Explore how OBBBA’s expanded deductions and higher exemption thresholds could reshape tax strategies for high-net-worth individuals now and in the future.
Learn how QBI, QSBS, and R&D expensing updates under the OBBBA can support smarter tax planning for businesses.
Read more about how the OBBBA introduces major tax and spending changes that could impact businesses through through new tax breaks, expanded deductions, and investment incentives.
Read more about how the OBBBA introduces major tax and spending changes that could impact individual taxpayers through extended cuts and new deductions.
On Tuesday, February 18, 2025, the U.S. District Court for the Eastern District of Texas lifted the nationwide injunction in the Smith, et al. v. U.S. Department of The Treasury, et al. case and the beneficial ownership information reporting requirements under the Corporate Transparency Act are once again in effect for most reporting companies.
Offering a 401(k) plan to your team is a meaningful way to invest in their future financial security. However, it also comes with a host of legal and administrative obligations. As a plan sponsor, you’re responsible for complying with regulations designed to protect your employees’ retirement savings and ensure prudent management of their investments.
Misunderstood compensation definitions
Plan sponsors often miscalculate contributions due to unclear or incorrect definitions of compensation, such as excluding bonuses or overtime from eligible earnings.
Work with payroll and HR teams to clarify how compensation is defined in your plan documents and ensure systems are aligned to calculate contributions correctly. When necessary, consult experts to confirm compliance with IRS rules. Regular audits of payroll processes can help identify and address potential issues early.
Delayed contributions
Delays in depositing employee deferrals can result in penalties from the Department of Labor (DOL), including the requirement to compensate participants for lost earnings. Even minor delays can trigger scrutiny.
Synchronize your payroll systems with the plan’s records to ensure timely deposits of employee contributions. Set up automated processes wherever possible to minimize delays. Conduct regular checks to verify contributions are being deposited within the required timeframes.
Audits, compliance, and regulatory changes
Plans with more than 100 participants typically undergo an external audit each year, which scrutinizes financial reporting and compliance practices.
The participant count is now based on the number of participants with account balances rather than just those who are “eligible.” This change took effect for the 2024 plan year and is intended to reduce the burden on plans where many workers may be eligible to participate but don’t maintain an active balance.
Even if an audit is not mandated, performing occasional internal or external reviews can reveal issues such as improper fees or administrative oversights before they become major problems.
This article is for informational purposes only and should not be considered legal advice. HTB’s qualified professional team is available to assist you with any specific questions or concerns about your 401(k) plan. Contact us today.