Author Archives:
Erin Carter

The Treasury Department and the IRS have issued final regulations on catch-up contributions under the SECURE 2.0 Act. The regulations confirm that certain higher-income employees who make catch-up contributions to workplace retirement plans will be required to designate those amounts as after-tax Roth contributions. These rules will affect plan sponsors, administrators, and participants as they prepare for the upcoming compliance dates.

Employees often look first at their paycheck when they think about compensation. That makes sense, since salary and take-home pay are the numbers they see most often. Other parts of the package such as health insurance, paid time off, and employer contributions to retirement plans may not be as visible. Yet these benefits represent a large share of what employers provide. Recent reports show that wages and salaries account for about 70% of employer costs for private industry workers, while benefits make up the remaining 30%.

On March 17, 2025, the Department of Labor (DOL) announced its first major update to the Voluntary Fiduciary Correction Program (VFCP) since 2006. The program, a familiar tool for retirement plan sponsors, has always offered a way to fix fiduciary errors before they lead to enforcement action. In practice, though, the process often required more paperwork than many sponsors felt was reasonable for small, routine mistakes. The new rules introduce a Self-Correction Component and modernize several existing provisions, giving employers a new path to compliance while keeping the accountability standards of ERISA in place.

Wilson Lewis, a leading accounting firm, announced today that they have won the Best of Accounting Award for providing superior service to their clients. ClearlyRated's Best of Accounting® Award winners have proven to be industry leaders in service quality based entirely on ratings provided by their clients. On average, clients of 2025 Best of Accounting winners are [1.6 times as likely OR 60% more likely] to be satisfied than those who work with non-winning firms.

Organizations that receive federal funding may be required to prepare a Schedule of Expenditures of Federal Awards (SEFA). This report is a central part of the Single Audit, a compliance requirement triggered when an entity spends a certain amount of federal funds in a fiscal year.

Preparing for an ERISA plan audit often starts with understanding what the audit looks for and how daily plan operations support compliance. For plans that cover 100 or more eligible participants at the beginning of the year, the audit is a required part of filing Form 5500. But beyond meeting filing requirements, the process gives sponsors a chance to review how contributions are handled, how participant data is tracked, and how internal controls are working.

The Corporate Transparency Act (CTA) passed in 2021 includes several provisions designed to prevent illegal activities such as money laundering and tax evasion. A key component of the legislation is the requirement for businesses to file Beneficial Ownership Information (BOI) to the Financial Crimes Enforcement Network (FinCEN). The reporting opened January 1, 2024, but has experienced several delays due to ongoing litigation. The culmination has been a delay in the reporting requirement since mid-January.

The Voluntary Fiduciary Correction Program (VFCP) is overseen by the Employee Benefits Security Administration (EBSA) of the U.S. Department of Labor. Through the VFCP, plan fiduciaries are encouraged to voluntary report and correct violations according to the Employee Retirement Income Security Act (ERISA). With this voluntary compliance process, fiduciaries have a structured way they can self-correct violations and better adhere to ERISA regulations. If there is a loss due to a fiduciary breach, for example, this self-reporting technique can ensure that they are restored to the plan in a way that protects plan participants and beneficiaries. Self-reporting also frees up resources for the Department of Labor to focus on violations that are more serious.

Earlier this month, the IRS issued IR-2025-07 which contains proposed regulations impacting catch up contribution rules. Specifically, there is important information on how the new Roth Catch Up Contribution Rule should be applied. It includes detailed information on the determination of wage threshold, FICA wages, definition of employer sponsor, and available correction methods.

Millions of Americans leave behind retirement accounts every year due to job changes, incomplete records, or failing to roll over funds. An estimated 29.2 million forgotten 401(k) accounts hold approximately $1.65 trillion in assets. In response to this growing issue, the Department of Labor (DOL) created the Retirement Savings Lost and Found (RSLF) database under the SECURE 2.0 Act of 2022.