Why a Public Agency Might Want to Add a 401(a) Plan

Why a Public Agency Might Want to Add a 401(a) Plan

The vast majority of public agencies already maintain a 457(b), or eligible deferred compensation plan. A much smaller number also maintains one or more 401(a) plans in addition. This post discusses some of the reasons a public agency might want to add a 401(a) plan...

One-time Irrevocable Elections and 401(a) Opt-in Plans

One-time Irrevocable Elections and 401(a) Opt-in Plans

There appears to be some confusion among California municipalities about 401(a) opt-in plans use and an employee’s ability to make a one-time irrevocable election to make pre-tax contributions. Because these plans are designed to give participants individual...

Ways to Correct Governmental Plan Problems

Ways to Correct Governmental Plan Problems

There are several tools that can be used to correct or fix governmental plan problems. First, some classification. Practically all the retirement plans we discuss are “tax-advantaged” in one form or another. However, within this group, there are three main subgroups:...

Do Not Apply AB 5 Too Broadly

Do Not Apply AB 5 Too Broadly

Perhaps the biggest news coming out of California’s Legislature this year was the passage of Assembly Bill 5 – the new law that codifies the 2018 Dynamex case and which imposes a new test for determining employee or independent contractor status for California wage...

The Improper Use of Governmental “Pre-Approved” Plans

The Improper Use of Governmental “Pre-Approved” Plans

There continues to be new, complicated problems arising from the improper completion and use of off-the-shelf governmental pre-approval plans. Generally, a pre-approved plan from the document provider is reviewed and pre-approved by the IRS for its general use and...

Why You Need to “Monitor” Full-time, Temporary Employees

Why You Need to “Monitor” Full-time, Temporary Employees

Due to budget restrictions and general hiring freezes, many California public agencies are forced to fill workforce gaps with temporary employees from staffing agencies. This practice, while quite common, is not well-understood — particularly when it comes to...