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Traditional Balance Forward Accounting & Services

Balance Forward Accounting

Balance Forward Accounting is the traditional method of participant accounting. It might also be called the accrual method of participant accounting. The balance forward method looks back over an accounting period (usually three, six or 12 months) and tallies up total contributions, investment income, withdrawals, transfers and forfeitures. These total amounts must then be attributed to individual participants by type of contribution and investment category. Individual amounts are recombined to develop individual participant account balances. Participant balances must add up to total plan assets.

The Balance Forward method is useful for plans which are based solely on employer contributions and plans that do not permit participant investment selection. It is also appropriate for many new plans while participant balances are still small. This method may also be used by employers who wish to keep plans simple, inexpensive and flexible.

McCready and Keene is one of the leaders in the country when it comes to handling Traditional Balance Forward Defined Contribution Plans. As one of the largest and most experienced retirement plan specialists, we tend to get the complex cases that our competitors simply can't handle, such as plans for companies with complex ownership structures that require multiple tests to determine compliance with regulations. Clients also turn to us for our flexibility and our creativity in designing plans and participant statements to meet unique needs.

As a new Balance Forward client your company will be assigned to a dedicated team that includes a Consultant, an Attorney or Paralegal who will oversee compliance issues, an Allocator, and an Allocation Manager who will supervise the establishment of the plan before participants are assigned to their permanent Allocator. By having a dedicated team assigned to you, you are able to talk to the same few people every time you call, rather than always being bounced around to a different person who doesn't always know the specifics of your plan, as happens at most retirement plan companies.

Balance Forward Accounting Services

To learn more about specific services available to Traditional Accounting clients, click on a link below:

McCready and Keene's Consulting staff can assist you before, during and after the determination of what's best for your company. Before making a recommendation we'll listen carefully to learn all we can about where your company is today, where you'd like to be in the future and what you would like to provide for your employees. During formulation of recommendations your primary Consultant will work closely with the team that has been assigned to your account. This team includes an Attorney or Paralegal who will oversee compliance and an Allocator, as well as Consulting Associates, Consulting Assistants and Administrative Assistants. Utilizing their combined knowledge and experience, the team will offer recommendations that address your key concerns, as well as issues you may not have considered. To help us in determining the best plan for your company we can undertake studies that allow us to consider issues such as:

  • Should you consider daily accounting?
  • How much of a match or profit sharing should you offer?
  • Should you have a "Safe Harbor" plan?
  • Should you consider an age-weighted profit sharing plan?
  • How does your plan compare to a Defined Benefit Plan?

After you make a decision about your Defined Contribution Plan, your team will be available to handle the day-to-day issues of your plan's administration, make sure you get the reports you need, when you need them, as well as make you aware of new opportunities as they come up.

The McCready and Keene team that designs your plan is the same team that will manage the administration of your plan. That administration experience means they understand the practical impact of their design, as well as the compliance and financial implications. The design team includes top compliance talent who will make sure your plan is designed to help you avoid audits by the IRS and/or the Department of Labor.

With our large in-house compliance staff, McCready and Keene is capable of assisting you with the drafting of your individually-designed Plan Documents (with your attorney's review) and submitting them to the IRS. If you prefer, you may retain outside counsel to perform these services. Our in-house compliance staff work on nothing but retirement plans, so they are extremely knowledgeable about and keep current on them.

As a plan sponsor, you have a fiduciary obligation to inform and educate your employees about their retirement plan options. Unfortunately, a limited staff and a limited budget can make it difficult for you to provide the level of employee communication you would like. Turn to McCready and Keene to help with employee meetings. We can provide easy-to-understand PowerPoint presentations, as well as informative written materials about plan highlights and benefit statements. Not only can we help you explain the plan, but we can help your employees to better understand the value of the benefit you are providing, thus strengthening their loyalty to your organization.

Adjusting retirement plans to accommodate mergers, acquisitions and spin-offs can be complicated. McCready and Keene's consultants and attorneys are very experienced with the testing, documentation and other issues associated with handling of retirement plans during ownership changes. Call on us to assist you in doing the right thing, at the right time to assure a smooth transition.

McCready and Keene offers traditional balance forward accounting record keeping for all types of Defined Contribution plans, including Money Purchase, Profit Sharing, 401(k), Target Benefit, 403(b), Age-weighted Profit Sharing, New Comparability and Employee Stock Ownership Plans (ESOPs). Management reports and participant statements are prepared to suit your needs on a quarterly, semi-annual or annual basis.

Our traditional record keeping services include

  • Preparation of benefits
  • Completion of transfers among investment choices
  • Assistance with contribution splits
  • Calculations of employer match
  • Calculation of employer profit sharing or money purchase contributions (integrated or non-integrated, age-weighted, new comparability or other such methods that may require non-discrimination testing)
  • Completion of all aspects of compliance testing
  • Completion of Form 5500
  • Assistance with loan procedures
  • Balancing complex trust/custodial statements
  • Calculation of earned income for partnerships and sole proprietorships
  • Assistance with ESOP leveraging issues
  • ESOP repurchase liability studies.

With more than 80 years of experience with qualified retirement plans and our staff of compliance experts, it's hardly surprising that McCready and Keene has gained a national reputation as the a leader in compliance testing. We're unwavering in our efforts to keep clients in full compliance with all applicable IRS and ERISA (Department of Labor) rules and regulations so that plans don't lose their favored tax status. The list of compliance services we offer is comprehensive and includes:

  • Determination of Highly Compensated Employees
  • Determination of Key Employees
  • ADP and ACP Testing
  • Code Section 410(b) Coverage Testing
  • Code Section 402(g) Deferral Limit Monitoring
  • Code Section 403(b) Maximum Exclusion Allowance Testing
  • Code Section 415 Maximum Annual Addition Testing
  • Code Section 404 Maximum Deduction Assistance
  • Code Section 457 Deferral Limit Monitoring
  • Code Section 414(s) Compensation Testing
  • 70-1/2 Minimum Distribution Calculations
  • ESOP Diversification Calculations
  • Form 5500 including Schedules and SAR
  • 1099-R preparation
  • Average Benefits Testing
  • General Testing
  • Top-Heavy Testing
  • Cross-Testing
  • New Comparability Testing
  • Other Non-Discrimination Testing
  • Document Requirements including Plan Document, restatements, amendments, resolutions, minutes, SPDs, SMMs, submission, 204(h) Notices, and other notices as needed to comply with IRS and ERISA rules
  • Excise Tax Assistance including calculation and Forms completion
  • Distribution Paperwork, including Joint and Survivor Notices and the Special Tax Notice
  • Plan Termination, Calculation and Consulting services for Defined Contribution Plans.

One of the key requirements of keeping your plan in compliance with federal rules and regulations is the filing of a Form 5500 and its many schedules. The penalties for non-filing of Form 5500 are severe, so McCready and Keene maintains a proprietary tracking system that ensures your forms are completed on time. If required information is not available to meet the filing deadline, we can file for an extension, enabling you to avoid any penalties. As part of our 5500 services we will prepare a Summary Annual Report (SAR) for your participants.

Our clients find that our ability to work seamlessly with their advisors, including their CPAs, attorneys and financial advisors, means they save time and money, plus they avoid potential mistakes that can bring unwanted attention from the IRS or the Department of Labor.