Pension laws change frequently. Broker-owners of real estate firms and other small business owners can minimize problems by doing a once-a-year review to ensure they maintain compliance. To help with a review, the Internal Revenue Service has created a new web-based tool to help determine which tax-favored pension plan best suits their needs and how to keep their plans in compliance.
The IRS Retirement Plan Navigator <http://www.retirementplans.irs.gov/choose-a-plan/> is intended to provide employers with an easy-to-use guide that focuses on three areas: choosing a plan, maintaining a plan and correcting a plan.
The navigator does not suggest which plan may be best for a specific employer, but it does lay out the options to allow them to choose one that best fits their situations. The navigator includes a side-by-side comparison of pension plans and their requirements.
The navigator provides a checklist and suggested resources for maintaining compliance. Although the Retirement Plan Navigator is aimed at small business owners, it also can help mid-size businesses review their options as well. Individuals who want to better understand their employer’s plan may also find it of use.
The Web-based guide will be kept up to date as pension laws and regulations change.