Industry News...
Below are links to resources that contain
information about current developments in the retirement industry.
IRS Gives Break on Misclassified Workers
By Stephen Ohlemacher
The Internal Revenue Service is offering a break to employers who come clean
about wrongly classifying workers as independent contractors to avoid paying
federal payroll taxes, the agency recently announced.
Employee Plans News -
Current
Edition
IRS Website (www.irs.gov)
Protecting retirement benefits through educating customers.
Retirement News for Employers - Current Edition
IRS Website (www.irs.gov)
The Retirement News for Employers is a periodic newsletter with
retirement plan information for employers and business owners - and their tax
advisors from Employee Plans (Tax Exempt and Government Entities (TE/GE) at the
IRS).
US Department of Labor Announces Intention to Extend Applicability Date of
Section 408(b)(2) Fee Disclosure Regulation
US Department of Labor (www.dol.gov)
The US Department of Labor's Employee Benefits Security Administration today
announced the it intends to extend the applicability date for the new disclosure
rules under section 408(b)(2) of ERISA to Jan 1, 2012.
Roth is Wrong - For Some People
By Fred Reish
Reish & Reicher: A Professional Corporation
I have been worried for some time that plan sponsors and participants do not
understand the consequences of Roth deferrals. I am concerned that many
plan sponsors do not educate participants properly and that many uninformed
participants are making Roth deferrals...
DOL issues
Interim Final Regulation Relating to Improved Fee Disclosure for Pension Plans
U.S. Department of Labor
Employee Benefits Security Administration
The Employee Retirement Income Security Act (ERISA) requires plan fiduciaries,
when selecting and monitoring service providers and plan investments, to act
prudently and solely in the interest of the plan's participants and
beneficiaries....
401(k) Questionnaire Coming to 1,200 Employers
IRS Website
During the week of May 17th, IRS Employee Plans Compliance Unit (EPCU) will send
a letter and instructions to 1,200 employers sponsoring 401(k) plans asking them
to complete the 401(k) Compliance Check Questionnaire.
Do you Have Enough to
Retire? Do the Math.
By Brett ArendsWall Street Journal
Just how much are you going to need in order to retire comfortably? It may
be the biggest financial question in your life. With 80 million baby
boomers now heading into the flight path for retirement, it's a pressing one,
too.
IRS
to Mail 401(k) Compliance Questionnaires
PlanSponsor.com
New York accounting firm Eisner LLP has issued a warning that the Internal
Revenue Service (IRS) will begin sending questionnaires to 401(k) sponsors to
gather information about their level of compliance with applicable tax
rules.....
IRS Reminds Employers of
April 30th Deadline for DC Pre-Approved Plans
IRS Website (www.irs.gov)
A special edition of the IRS Employee Plan News reminds employers of the
deadline to adopt their new pre-approved plan.
DOL Audits of Retirement Plans Expected to Increase
PlanSponsor Website (www.plansponsor.com)
Several signs suggest that the number of EBSA investigations and penalties will
increase.
ROTHS: Your Questions, Our
Answers
The Wall Street Journal
by Anne Tergesen
Our recent column about tax rules that are about to give more people access to a
Roth individual retirement account prompted many questions from readers...
IRS Retirement Plans NavigatorIRS Website (www.retirementplans.irs.gov)
The IRS has launched a new site
www.retirementplans.irs.gov to encourage small-business owners to establish
retirement plans for their employees. The site will help employers choose
the right plan for their business and has information and resources on
maintaining plans and correcting plan errors.
With EGTRRA
Restatement, a perfect time for plan changes
By Philip J. Fogli
Employee Benefit News
If you offer a defined contribution plan to your workers, your plan
document must be restated with the IRS sometime within the next year. This
is a result of the Economic Growth and Tax Relief Tax Reconciliation Act of
2001....
Proposed Regulations on "Exiting" Safe Harbor Nonelective Issued
Sungard Relius
The IRS has issued proposed regulations that will permit employers who maintain
a safe harbor 401(k) plan to reduce or suspend ("exit") that safe harbor
nonelective contribution during the plan year without disqualifying the 401(k)
arrangement....
Mid-Year Safe
Harbor 401(k) Plan Changes
Sungard Relius
Current Economic conditions have raised considerable questions regarding
required Safe Harbor contributions. This article from Sungard Relius
covers how an employer can eliminate or freeze fixed contributions under a safe
harbor 401(k) plan.
ERISA Fidelity Bonding
Requirements --- Department of Labor Guidance
DOL Website (www.dol.gov)
The Field Assistance Bulletin from the DOL (link above) is an in-depth
Q&A article providing guidance and valuable information about current bonding
requirements.
Department of Labor Fact
Sheet on QDIA's
DOL Website (www.dol.gov)
The DOL recently issued a fact sheet with
information relating to Qualified Default Investment Alternatives in
Participant-Directed Individual Account Plans.
THE LOAN DANGER -
Borrowing from 401(k) Accounts can be a bad deal all around
by Randy MyersCFO Magazine
The credit crunch has come home to roost in many unlikely places, from the
student-loan market to the municipal-bond arena. Here's another improbably
victim: your human resources department. The subprime crisis and its many
ripple effects are prompting more financially strapped homeowners to borrow from
their 401(k) plans....
Consumers risk taxes, penalties when they raid their
401(k) retirement accountsby Eileen
Alt Powell; AP Business WriterAssociated Press
Although 401(k) and other employee-sponsored retirement accounts are supposed to
be for long-term saving, many of the plans allow participants to take money out
early under special circumstances. But under tax laws, there can be
serious investment and tax consequences if people borrow or withdraw from their
accounts before age 59 1/2...
401(k) Loans Can Bite You
by Eleanor LaiseThe Wall Street Journal
Feeling a cash crunch? Think twice before tapping into your 401(k)
account--especially as the economy slows.....
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