Pension Performance FAQ's

Compliance Testing and Plan Limits

Due to the tax advantages provided to qualified retirement plans, these plans are required to adhere to strict regulations determined by the IRS and the Department of Labor.
There are several discrimination tests that must be passed annually for the plan to retain its qualified status. In addition, there are dollar and percent limits on the amount that individuals are allowed to save on an annual basis. Employers are limited in the amount that they can deduct as well.
These limits change on an annual basis. For access to these annual limits and additional information on compliance testing you may click on the link to the left.

New Automatic Rollover Rule

A New Department of Labor rule regarding cash-
outs of small retirement plan account balances and
automatic rollovers recently took effect. According to the new rules, mandatory distributions between $1,001 and $5,000 must be automatically rolled over to an IRA if the participant fails to make an election. The new rules apply to all distributions occurring on or after March 28, 2005(but the Plan may be amended by the end of the Plan Year).

All plans must be amended to either include or eliminate the new rules. The new rules if adopted require certain administrative responsibilities. Small employers or employers who are able to find former employees could benefit from eliminating the automatic rollover provisions to decrease the additional administration.

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  • The highest standard of quality of work
  • Highly trained administrators
  • Timely and accurate information
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Please explore our website to find out more about our services and company.

Compliance information

Plan limits

For more information:

Pension Performance, Inc.
Pension Performance Inc.
2551 Division St., Suite 104
Joliet, IL 60435

815-733-6226 Phone
815-733-6224 Fax