December 2017 Newsletter & Important Information
As 2017 comes to a close, we think about our clients, professional colleagues, friends and family. We
truly appreciate your business and we’re grateful for the trust you have placed in us for over 20 years. We
are privileged to have the opportunity to serve you and we look forward to continuing our relationship for
years to come. Should you have any suggestions on how we can serve you better, please do not hesitate to
drop us a note or give us a call. Our commitment to providing you the best service is our primary goal.
Meet our New Staff
Please join us in welcoming our new Team Members!
Beth Mauri – Beth joined our team in August as a Client Services Specialist.
Lisa Gotberg – Lisa joined our team in August as a Plan Consultant for Defined Contribution Plans with
over 5 years of experience.
Crystal Curtis – Crystal joined our team in August as a Plan Distribution Specialist.
Jessica (Jesse) King, QKA – Jesse joined our team in September as a Plan Consultant with 5 years of
Kathryn (Kat) Schwartz – Kat joined our team in November as our Business Operations Manager with
over 15 years of experience.
Important Year-End Compliance Checklist
The Year-End Compliance Checklist has been designed to help ensure that various time-sensitive
matters related to your Plan are executed and/or addressed before December 31, 2017 (or shortly
thereafter, as applicable). Please review this checklist carefully (even if your Plan Year-End does not
correspond with the calendar year) and contact your PASI Plan Consultant with any questions you may
have. You only need to return this checklist if necessary, as indicated on the checklist.
Qualified Plan Limits for 2018
Special 401(k) / 403(b) Payroll Deduction Form for Bonuses
If your company is giving holiday or other bonuses this year, your 401(k)/403(b) plan may allow
Participants to make a special 401(k)/403(b) payroll deduction election that would apply exclusively to
that bonus. This means Plan Participants could contribute up to 100% of their bonus without impacting
their regular payroll deduction contribution elections. If you would like to discuss this option with us,
please contact your Plan Consultant. PASI can customize a form for use with your Plan.
Timely 401(k)/403(b) Deposits
The issue of timely 401(k)/403(b) deposits continues to be of the highest priority to the U.S. Department
of Labor. In accordance with final regulations regarding deposit deadlines, Plans with less than 100
Participants are required to deposit contributions within seven (7) business days from the paycheck date.
Plans with more than 100 Participants have generally been held to a higher standard – we therefore
recommend that these larger plans deposit contributions as soon as possible after the paycheck date.
If you have any questions on your deposit requirements, please call your Plan Consultant.
Use Sharefile to Securely Transmit Sensitive Data to PASI
Connecticut, and many other states, have laws requiring employers to protect personal information, such
as Social Security Numbers and Dates of Birth. In order to send and receive this information to and from
our clients, we use Sharefile (a Citrix subsidiary). Sharefile is a state of the art provider of encryption
software to share sensitive data with recipients. Please remember to use this feature when returning
sensitive information to our office. A Sharefile link is included in each PASI Consultant’s email
PASI Pre-Approved 401(k): Amendment Regarding the Use of
Forfeitures Toward Safe Harbor Contributions
The following applies to your Plan if: a) you sponsor a 401(k) Plan; b) your Plan is based on PASI’s preapproved
Plan document; and c) your Plan includes Safe Harbor Matching or Non-elective contributions.
For a period of two to three years, the IRS had placed significant restrictions on a Plan Sponsor’s ability
to reduce its required “Safe Harbor” contributions by available forfeiture balances. Forfeitures arise from
the non-vested balances of terminated Participants. Various professional organizations supported by PASI
successfully lobbied with the IRS to reverse this needless constraint on Plan Sponsors. The
amendment to our pre-approved Plan has been adopted on behalf of all Employers who have adopted our
document. No action is required on your part and your Participants do NOT need to be informed of this
change. If you have any questions on this amendment please call your Plan Consultant. If applicable,
please simply file a copy of this amendment with Plan’s permanent files.
Employee Census Data
If your Plan Year ends on December 31st, your Plan Consultant will be reaching out to you for important
census data in the coming weeks. Feel free to contact your Plan Consultant at any time if you are prepared
to supply us with this data, but have not yet received our formal request.
Fidelity Bonding Requirements
Federal law (i.e. ERISA) generally requires that qualified retirement plans must be protected by a fidelity
bond. A fidelity bond protects the Plan’s assets from losses due to fraud or dishonesty by any individual
handling funds or other property of the Plan (e.g. Trustees). PASI requests a copy of your fidelity bond to
review it for compliance each year.
PASI recommends obtaining a policy that provides “blanket” coverage for anyone required to be bonded.
Otherwise, you should ensure that any of the following individuals are covered by the policy:
• Anyone who has physical contact with cash, checks or similar Plan property.
• Anyone with the power to transfer or negotiate Plan property for a price.
• Anyone with the power to disburse funds, sign checks, or produce negotiable instruments from the
• Anyone that has decision-making authority over any individual described above.
PASI also recommends obtaining a policy that automatically increases the bond amount to the level
necessary to comply with ERISA (“inflation guard”). Otherwise, you should ensure that the fidelity bond
provides coverage of no less than 10% of the Plan’s assets. Regardless, the bond amount can never be less
than $1,000. A bond is not required to be more than $500,000 (except in the case of a Plan holding stock
of the plan sponsor). Many plan sponsors choose to obtain coverage well in excess of $500,000 based on
consultations with their insurance agents.
For more information on the fidelity bonding requirements, or to check your fidelity bond status, please
call your Plan Consultant.
It’s a great time to switch to PASI Payroll!
Concerned about late deposits and lost interest owed to Participants? For an easy, integrated 401(k) and
Payroll solution, talk to us about PASI Payroll!
PASI Payroll can reduce your administrative burdens and minimize errors and delays that often occur
with separate vendors managing your retirement planning and payroll activities.
It’s a package of complete, accurate and affordable payroll services that also allows you to realize full
integration and custom reports. Plus, you eliminate the need for compiling year-end census data!
Call us or see more information about our Payroll Services here.