Deals and People July 22, 2014

Burnham Benefits Adds Senior Account Executive

July 22, 2014 (PLANSPONSOR.com) – Burnham Benefits Insurance Services, an employee benefits brokerage firm, has named Helen Vits as a senior account executive.
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Vits will consult with clients as they structure their employee benefit packages—from initial procurement and analysis to implementation. The firm notes that the enactment of the Patient Protection and Affordable Care Act (or ACA) has ushered in a need for subject matter experts with the skills to adapt to changes and recommend solutions to keep clients competitive in the job market.

Kristen Allison, president and CEO of Burnham Benefits in Irvine, California, says the firm hopes to leverage Vits’ expertise in ACA compliance, business development, communications and strategic client support.

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Vits’ career in employee benefits began at Baker, Thomsen Associates, where she moved through a number of positions and remained with the firm as it was acquired by Brown & Brown. In addition to consultation, Vits launched and led a webinar series at Brown & Brown, managed partner relationships, served as a technical lead and pursued new business opportunities.

Prior to her career in employee benefits, Vits worked in various accounting and advertising roles. She predicts technology will help drive the next evolution of health care, and says she plans to draw upon a strong technical background in the new role with Burnham Benefits.

“I think any health care strategy should include technology,” Vits says. Online systems will help streamline efficiencies within organizations and the emergence of private exchanges will become increasingly attractive to employers looking to control or reduce costs, she adds. New technologies will also allow employers to offer more choice to attract, recruit, and retain employees while maintaining regulatory compliance. 

More information about Burnham Benefits Insurance Services is available here.

Ask the Experts July 22, 2014

(b)lines Ask the Experts – Employer Contribution Limits for 403(b)s and 457(b)s

July 22, 2014 (PLANSPONSOR (b)lines) – “I realize that there are separate 402(g) elective deferral limits for 457(b) and 403(b) plans, but what about for employer contributions?
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“We wish to make an employer contribution to our 457(b) plan for an employee. Will that contribution impact the employee’s 415 limit?”  

Michael A. Webb, vice president, Cammack Retirement Group, answers:

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Your question is an interesting one, since it is illustrative of the fundamental differences between contributions to retirement plans, such as a 403(b) plan, and deferred compensation plans, such as a 457(b) plan. In a retirement plan such as a 403(b) plan, there are separate limits for elective deferrals and for combined employer and employee contributions (including elective deferrals).  In a deferred compensation plan, all contributions are considered to be a single contribution type; namely, compensation that is deferred until some future event where it no longer can be deferred (e.g. termination of employment). Thus, even though, in your example, the employer is making the contribution to the 457(b) plan, it is no different than employee elective deferrals to the 457(b) plan for contribution limit purposes; both types of contributions are considered to be compensation deferred to the plan, subject to a single limit under 457(e) (lesser of 100% of compensation or $17,500 in 2014, subject to certain catch-up rules). Thus, there is no 415 limit on combined employer and employee contributions to a 457(b) plan, since there is no such thing separate employer and employee contributions for 457(b) contribution limit purposes. The contribution limit differences between the two plans can best be illustrated by following chart:

Ask the Experts employer contribution limits chart

 

(*Both the 403(b) and 457(b) limits are subject to certain catch-up rules that we won’t go into here.)

Thus, to return to your question, employer contributions to a 457(b) plan would be treated the same as elective deferrals to a 457(b) plan; they would have no impact on an individual’s contribution limit to his/her 403(b) plan with the same employer.

 

NOTE: This feature is to provide general information only, does not constitute legal advice, and cannot be used or substituted for legal or tax advice.

 

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