The Sentinel Show

Are 401(k) loans a financial lifeline or a retirement trap? In the season finale, Melissa Terito and Kasey Melancon share their unfiltered takes on 401(k) loans, why they're skeptical of them, where they go wrong in practice, and what plan sponsors need to know before opening that door. From double taxation and missed payroll deductions to a participant who somehow borrowed $300,000 thinking the $50,000 limit was per loan, this episode covers the real-world chaos that can unfold when loan policies lack guardrails. Plus, the surprising truth about where loan rules actually live in your plan documents. If you sponsor a 401(k) plan or are thinking about adding loans, this one's for you.Have any questions about this episode’s topic? Let us know!Visit our website for more information: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Sentinel (sp-tpa.com)⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Call us at 225-300-8478⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Follow us on LinkedIn⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Follow us on Facebook ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Music by Adam Vitovsky

Think your Solo 401(k) is easy to manage because it's just you? Think again. In this episode of The Sentinel Show, Melissa Terito and Kasey Melancon tackle one of the retirement plan world's biggest traps: the deceptively "simple" Solo 401(k).Melissa and Kasey discuss why 75% of the Solo 401(k)s they see are set up incorrectly, often because business owners hired employees and didn't realize their "solo" plan just became a full-fledged 401(k) with all the compliance requirements attached. From the owner who crossed the $250,000 asset threshold three years ago and never filed a Form 5500, to the S-corp owner maxing out contributions based on their 1099 income instead of their actual W-2 wages, the hosts walk through common errors they encounter.The conversation covers when a Solo 401(k) might make sense versus a SEP IRA, why those two-page "fill in the blanks" plan documents can be problematic, what happens when document restatements get overlooked, and why even owner-only plans benefit from proper administration. Melissa breaks down the math on contribution limits, explaining the potential difference between Solo 401(k) and SEP contributions for someone with $100K in W-2 wages.Whether you're a business owner with a Solo 401(k), a financial advisor working with solo practitioners, or someone navigating retirement plan administration, this episode explores the compliance pitfalls that often go unnoticed until it's too late.Because as Melissa says, the easiest things can get the most messed up. And $250,000 comes faster than you think.

Do you own more than one business? Even if they seem completely unrelated, the IRS may still consider them a single employer when it comes to your retirement plan — and that distinction could cost you.In this episode of The Sentinel Show, Melissa Terito and Kasey Melancon break down one of the most commonly misunderstood areas of retirement plan compliance: controlled groups and affiliated service groups. From parent-subsidiary structures to brother-sister controlled groups, Melissa walks through the real-world scenarios she sees done wrong every day — including the classic mistake of setting up a separate plan specifically to avoid covering employees.The conversation covers what actually triggers a controlled group or affiliated service group, why business owners assume they're in the clear when they're not, what happens when you're only covering 50% of your total employee population instead of the required 70%, and why the "but my companies have nothing to do with each other" argument doesn't hold up the way most people think it does.If you own multiple businesses, have partners who own other entities, or have ever wondered why your TPA keeps asking so many questions about ownership — this episode is exactly why. Getting this wrong isn't just a technicality. It can mean funding corrective contributions for employees who never had the chance to participate in your plan.Don't wait until someone finds the problem for you.

In this latest episode of The Sentinel Show, Kasey Melancon and Melissa Terito cut through the noise to talk about how we're actually using AI as a "thought partner." They’re diving into how we use "closed AI" to keep data secure while summarizing technical reports, using AI note-takers so you can actually be present in meetings instead of scribbling notes, and why the right prompt can get a client to respond in 24 hours when nothing else works. AI isn't going to solve every problem, but it's helping us bust through some major roadblocks.

In this episode of The Sentinel Show, host Melissa Terito sits down with her friend of twelve years, Marta Hurst from Fiduciary Wise, to clear up the common confusion surrounding retirement plan fiduciaries and the "alphabet soup" of modern plan structures. Marta explains her role as a 402(a) fiduciary and how many plan sponsors don't even realize they hold fiduciary status. The conversation gets into the nitty-gritty of Pooled Employer Plans (PEPs) versus Groups of Plans (GoPs), noting that while a PEP requires a Pooled Plan Provider (P3) and acts as a single merged entity with one shared audit, a GoP is essentially an "easy button" that allows individual plans to stay independent while sharing service providers and a single Form 5500 filing. Ultimately, the pair stresses that whether you're looking for audit savings in a PEP or the simplicity of a GoP, you don’t want to set these up incorrectly, making expert consultation essential.