Headlines about "457 plans"
Gathered from the web by the editors at BenefitsLink.com.
[Guidance Overview] Unforeseeable Emergencies and Hardship Withdrawals: What Every 457 Plan Administrator Needs to Know
Excerpt: "The circumstances that constitute an unforeseeable emergency (UE) should be based on facts and made on a case by case basis. The IRS has not provided guidance on what is adequate documentation to validate the UE request and this has created some uncertainty among administrators about whether they are requiring enough documentation from plan participants who are applying for a UE. NAGDCA recently spoke with Cheryl Press, a Senior Counsel for Tax Exempt and Government Entities at Chief Counsel IRS, regarding the feasibility of using self-certification to satisfy the regulations regarding distributions from a section 457 plan for unforeseeable emergencies." (National Association of Government Defined Contribution Administrators)
Code Sections. 409A and 457A Present M&A Issues, Treasury Official Notes
Excerpt: "Practitioners doing due diligence in mergers and acquisitions (M&A) transactions have been among the first to identify issues under Code Secs. 409A and 457A that may require further guidance, observed Treasury Deputy Benefits Tax Counsel Helen Morrison. Speaking on an executive compensation panel at the Practising Law Institute's (PLI) 'Tax Strategies for Corporate Acquisitions, Dispositions, Spin-Offs, Joint Ventures, Financings, Reorganizations & Restructurings 2009,' in New York on October 28, 2009, Morrison reviewed the Treasury's guidance plans under Code Secs. 409A and 457A." (Wolters Kluwer)
[Official Guidance] Chart of IRS Retirement Plan Limits 2003 - 2010
Excerpt: "We have also produced a white paper that discusses the methodology that the Service uses to determine the limitations. This white paper includes the unrounded limitations." (Internal Revenue Service)
[Guidance Overview] Chart of 415, Etc., Limits Updated for News Release IR-2009-94
The chart of maximum limits subject to inflation indexing at Carol V. Calhoun's employee benefits site has now been amended to include the newly announced 2010 limits. Among other things, the chart shows limits under sections 415, 403(b), 401(k), and 457, as well as the Social Security wage base and Social Security and Medicare tax rates, for 1996-2010. (Calhoun Law Group, P.C.)
IRS Planning to Issue Guidance on a Number of Issues Involving Code Sec. 457 Deferred Compensation Plans
Excerpt: "[It is] noted that the IRS has not issued major guidance under Code Sec. 457 since it released final regulations in 2003. [The following is expected to be issued:] guidance on ineligible plans under Code Sec. 457(f); the definition of a governmental plan under Code Sec. 414(d); excess benefit plans under Code Sec. 415(d); and welfare benefit plans excluded from Code Sec. 457, such as bona fide sick and vacation leave, severance and death benefit plans." (Wolters Kluwer)
[Guidance Overview] IRS Answers to Questions on Taxability of Roth Conversions
Excerpt: "In Notice 2009-75, the Internal Revenue Service provides guidance in the form of a Q&A on the tax treatment of eligible rollover distributions from qualified plans into a Roth IRA. The guidance further clarifies that a qualified plan is a qualified plan described in ? 401(a), an annuity plan described in ? 403(a), a plan described in ?403(b), or a governmental ? 457(b) plan." (PLANSPONSOR.com; free registration required)
[Guidance Overview] IRS Guidance on Accrued Leave Contributions to Qualified Retirement Plans
Excerpt: "Although the IRS guidance confirms the legitimacy of certain basic leave contribution arrangements that sophisticated employers have had in place for some time, several significant issues are left unaddressed, including the following: Would leave contributions be subject to FICA taxes? . . . . Can leave contributions be made to a section 403(b) tax-sheltered annuity plan or a government-sponsored 457(b) deferred compensation plan?" (Ballard Spahr LLP)
[Official Guidance] Text of IRS 'Employee Plans News' for Practitioners - Special Edition September 2009 (PDF)
2 pages; provides a brief set of links to the recent IRS notices and rulings. Excerpt from an IRS email: 'This special edition discusses the Retirement & Savings Initiatives, Rollovers From Employer Plans to Roth IRAs, the IRS Retirement Plans Navigator and Life Events That Can Affect Retirement Savings." (Internal Revenue Service)
[Official Guidance] Text of IRS 'Retirement News for Employers' - Special Edition September 2009 (PDF)
3 pages. Excerpt from an IRS email: 'This special edition discusses the Retirement & Savings Initiatives, Rollovers From Employer Plans to Roth IRAs, the IRS Retirement Plans Navigator and Life Events That Can Affect Retirement Savings." (Internal Revenue Service)
[Official Guidance] Text of IRS Notice 2009-75: Rollovers from Employer Plans to Roth IRAs (PDF)
8 pages. Excerpt: "This notice describes the federal income tax consequences of rolling over an eligible rollover distribution from a qualified plan described in ? 401(a) of the Internal Revenue Code (Code), an annuity plan described in ? 403(a), a plan described in ? 403(b), or an eligible governmental plan under ? 457(b) to a Roth IRA described in ? 408A. . . . This notice supplements the regulations under ? 408A and Notice 2008-30 to provide additional guidance on a rollover from an eligible employer plan to a Roth IRA." (Internal Revenue Service)
[Official Guidance] Final IRS Regs: Reasonable Good Faith Interpretation of Required Minimum Distribution Rules by Governmental Plans (PDF)
2 pages. Excerpt: "On July 10, 2008, the IRS and Treasury Department published [proposed regulations] . . . that would [amend] the regulations under sections 401(a)(9) and 403(b) of the Code. The IRS and Treasury Department received no comments on the proposed regulations and no public hearing was requested or held. Accordingly, the provisions of these final regulations are identical to the proposed regulations." (Internal Revenue Service)
Alabama Attorney General Takes Over 457 Plan Fee Probe
Excerpt: "Alabama Attorney General Troy King has taken over a probe into at least $10 million in fees paid [to] the Alabama State Employees Association from the 457 Plan accounts of current and retired state workers. Forbes reported that King has already asked Alabama Securities Commission (ASC) Executive Director Joe Borg to delay any further work on the commission's ongoing investigation of Nationwide's involvement with the state's 457 program, but Borg then opted to pull the ASC out of the picture in favor of King's broader investigative authority." (PLANSPONSOR.com; free registration required)
Target-Date Funds for Government Retirement Markets?
Excerpt: "One of the nation's largest mutual fund companies has pre-announced a new product line that could shake up the governmental 457 and 403(b) deferred compensation markets: a series of 'target-date' index funds. The original TD funds were all actively managed at relatively high fees and carried the risk that portfolio manager would underperform the index, as many have The new funds use index funds only and often have much lower fees and more predictable performance." (Governing.com)
[Opinion] Will SEC Ban Pension 'Pay to Play'? Rules Should Also Govern 457 and 403b Plans
Excerpt: "With its new proposed regulations, the SEC is once again following behind the trailblazing enforcement work of the New York attorney general's office, this time Andrew Cuomo's Pension Fund Code of Conduct ,which has been signed by several investment firms seeking to achieve settlements on placement agent investigations. With billions of dollars to invest, public pension funds are attractive targets for investment managers. If they can find a way to win votes on the pension board by 'influencing' a public official with campaign contributions (or even worse, outright bribes), the profits from managing multi-millions of dollars can easily cover the costs of a little baksheesh. So the SEC is dead right to put a stop to this practice." (Governing.com)
[Guidance Overview] 2009 Complicance Checklist for Governmental and Nonelecting Church Plans, Non-Erisa 403(b) Programs, 457 Plans, and Other Nonqualified Executive Benefit Plans Not Subject to ERISA (PDF)
14 pages. Excerpt: "The Checklist incorporates requirements for Governmental and Nonelecting Church Plans, Non-ERISA 403(b) Programs, 457 Plans, and Nonqualified Executive Benefit Plans, and provides information on the materials that you will need to file, filing due dates, and agencies to which the filings should be made." (Prudential)
2nd NAGDCA 2009 Survey of Defined Contribution Plans
Excerpt: "This report contains two sections. The National Summary provides a narrative overview of the key areas involved in administering governmental 457, 401(k), 401(a), and 403(b) plans. The survey also provides a pdf of the Overall Survey Results, which offers a look at the survey through charts and responses from all participating entities." (National Association of Government Defined Contribution Administrators, Inc.)
Nonbank Trustees and Custodians: IRS Web Page
Excerpt: "Pursuant to Treas. Reg. ?1.408-2(e), an entity that is not a bank (or, in the case of Archer medical savings accounts and health savings accounts, not a bank or an insurance company) must receive IRS approval to serve as a nonbank trustee or custodian of the following types of tax-exempt trusts or accounts . . . ." (Internal Revenue Service)
Section 457A Plan Sponsors Face June 30 Deferred Compensation Vesting Decision
Excerpt: "Sponsors of nonqualified deferred compensation (NQDC) plans subject to Section 457A must act by June 30 to take advantage of a transition rule for certain NQDC amounts vesting after Dec. 31, 2008. When 457A applies, NQDC provided to US taxpayers employed by foreign companies is taxable at vesting -- or later in some cases, with even harsher results. Sponsors can soften the blow for some NQDC recipients by retroactively accelerating vesting to a date before Jan. 1, 2009. Employers opting to do so must amend plans by June 30 and apply the changes consistently to all employees in similar plans." (Mercer LLC)
[Official Guidance] Text of 'IRS Retirement News for Employers' -- Spring 2009 Edition (PDF)
14 pages. Excerpt: "The EP Team Audit (Large Case Program) web pages have been updated to include: EPTA Trends and Tips (now organized according to plan type): Common Trends Across All Plan Types; Multiemployer Plan Trends; 401(k) Plan Trends; Defined Benefit Plan Trends; 403(b) Tax-Sheltered Annuity Plan, 457 Plan and Governmental Plan Trends; 'EPTA Trends and Tips' includes links to videos on the EPTA program and on finding, fixing and avoiding plan errors; Internal Controls Questionnaire - Examples of questions asked by EP examiners to understand the system procedures and internal controls; Taxpayer Documentation Guide - This guide, developed by EPTA agents and outside practitioners, provides a comprehensive list of documents that need to be made available for examination." (Internal Revenue Service)
[Guidance Overview] IRS Revision of Self-Correction Procedures for Nonqualified Deferred Compensation Plans (PDF)
4 pages. Excerpt: "These correction procedures are available to plan sponsors of and participants in nonqualified defined benefit or defined contribution plans that provide for the deferral of compensation (section 409A plans), including section 457(f) plans." (Prudential Retirement)
[Guidance Overview] Final Guidance on Automatic Enrollment Plan Designs (PDF)
7 pages. Excerpt: "These developments affect sponsors of 401(k) plans, 403(b) plans, and governmental section 457(b) plans. Background and summary: The Pension Protection Act of 2006 (PPA) included provisions to encourage sponsors of 401(k) plans, 403(b) plans, and governmental section 457(b) plans to adopt automatic enrollment plan designs. These provisions included the creation of: Eligible Automatic Contribution Arrangements (EACAs), to permit the penalty-free distribution of 'accidental' automatic deferrals and provide a six-month period to distribute excess contributions and excess aggregate contributions without imposition of the 10% excise tax; and Qualified Automatic Contribution Arrangements (QACAs), to provide a safe harbor plan design that exempts plans from certain nondiscrimination tests." (Prudential Retirement)
NAGDCA 2009 Survey of Defined Contribution Plans
Excerpt: "This report contains two sections. The National Summary provides a narrative overview of the key areas involved in administering governmental 457, 401(k), 401(a), and 403(b) plans. The survey also provides a pdf of the Overall Survey Results, which offers a look at the survey through charts and responses from all participating entities." (National Association of Government Defined Contribution Administrators)
[Guidance Overview] IRS Interim Guidance on Certain Nonqualified Deferred Compensation Programs
Excerpt: "Last fall, the Emergency Economic Stabilization Act, also known as the Bailout Bill, became law. Among other things, it closed what some viewed as loophole in Code Section 409A by providing for similar tax penalties for tax indifferent parties. In this article, we review the IRS's first guidance under new Code Section 457A." (JPMorgan Chase & Co.)
[Guidance Overview] Worker, Retiree, and Employer Recovery Act Provision of Relief for Defined Contribution Plans (PDF)
4 pages. Excerpt: "This new law applies to sponsors of and participants in qualified defined benefit and defined contribution plans, including multiemployer plans, governmental plans, and church plans that do not elect to be covered by ERISA ('non-electing church plans'). It also applies to ERISA and Non-ERISA 403(b) plans and governmental section 457(b) plans." (Prudential Retirement)
[Guidance Overview] Bringing Elective Deferral Plans Into Compliance with Final 401(k) Auto-Enrollment Regulations
Excerpt: "Given the current economic climate it is unlikely there will be a rush to implement new QACAs or EACAs for the 2010 plan year. However, the issuance of final regulations will provide greater certainty for plan sponsors choosing to do so. For QACAs already in existence, plan sponsors and administrator will want to bring the features in line with the final regulations as soon as possible given the retroactive effective date. In particular, they will want to: . . . ." (Deloitte)
[Guidance Overview] IRS Issues Final Rules on Automatic Contribution Arrangements
Excerpt: "In the final regulations, the IRS addressed a question on whether employers should start rehired employees subject to qualified automatic contribution arrangements at the deferral percentage at which they were deferring when they terminated, or at the minimum deferral percentage under the arrangement. The IRS said that if the employee has been terminated for one year or more, then the plan sponsor can automatically enroll the employee in the plan at the minimum deferral percentage under the arrangement upon rehire." (PLANSPONSOR.com; free registration required)
[Official Guidance] Text of Final IRS Regulations on Automatic Contribution Arrangements (Federal Register reprint) (PDF)
15 pages. Revises the proposed regulations issued on November 8, 2007. Rules applicable to Qualified Automatic Contribution Arrangements apply to plan years beginning on or after January 1, 2008. Rules applicable to Eligible Automatic Contribution Arrangements apply to plan years beginning on or after January 1, 2010. Makes several changes; also takes into account the Worker, Retiree and Employee Recovery Act of 2008 (WRERA). (Internal Revenue Service)
[Official Guidance] Final IRS Regs on Automatic Contribution Arrangements Under Section 401(k) and Other Eligible Retirement Plans (PDF)
61 page advance copy; revises the proposed regulations issued on November 8, 2007. Rules applicable to Qualified Automatic Contribution Arrangements apply to plan years beginning on or after January 1, 2008. Rules applicable to Eligible Automatic Contribution Arrangements apply to plan years beginning on or after January 1, 2010. Makes several changes; also takes into account the Worker, Retiree and Employee Recovery Act of 2008 (WRERA). Scheduled for publication in the Federal Register on February 24, 2009. (Internal Revenue Service)
401(k) Participants May See Plain-English Summary Prospectus Under New SEC Rule
Excerpt: "Mutual funds may give investors a plain-English summary prospectus, rather than a full prospectus, under a final SEC rule effective March 31, 2009. The rule ultimately may change the form and content of fund information passed through to participants in many 401(k), 403(b) and 457 plans. Once summary prospectuses become available, plan sponsors will need to re-evaluate 'pass-through' disclosure obligations under ERISA." (Mercer LLC)
[Guidance Overview] New IRC Section 457A: Unanswered Questions Abound
Excerpt: "New IRC ? 457A imposes more restrictive income timing rules on nonqualified deferred compensation from 'tax indifferent' entities, effective for amounts deferred that are attributable to services rendered after December 31, 2008. This article discusses some of the issues that employers face as they try to understand how IRC ? 457A will apply to their own particular compensation arrangements." (Deloitte LLP via BenefitsLink.com)
[Guidance Overview] IRS Guidance on Section 457A Foreign Deferred Compensation Rules (PDF)
5 pages. Excerpt: "New Code section 457A, which imposes substantial restrictions on the use of nonqualified deferred compensation arrangements sponsored by certain foreign entities, was included as part of the financial bailout legislation (Pub. L. No. 110-343) enacted last fall. . . . Under the new provision, compensation deferred under a nonqualified plan of certain nonqualified foreign entities is taxed at the time of vesting ? i.e., the deferred amounts are includable in income when such amounts are no longer subject to a 'substantial risk of forfeiture' ? even if they are not yet payable. The Treasury Department and Internal Revenue Service recently released Notice 2009-8 (the 'Notice,' Jan. 26 IRS Bulletin), which provides interim guidance interpreting Code section 457A." (Groom Law Group)
[Guidance Overview] IRS's Interim Guidance on Taxation of Deferred Compensation Maintained by Certain Partnerships and Foreign Corporations (PDF)
6 pages. Excerpt: "This month, the IRS issued Notice 2009-8 as interim guidance on Section 457A of the Internal Revenue Code ('457A'), which imposes immediate taxation, and in certain circumstances a 20-percent penalty plus interest, on deferred compensation arrangements maintained by certain partnerships and foreign corporations. The interim guidance basically elaborates on 457A's statutory scheme, in much the same manner as IRS Notice 2005-1 established guidelines for interpreting Code Section 409A ('409A') after its enactment. Taxpayers may rely on the interim 457A guidance until the IRS issues further guidance, with the IRS promising not to expand 457A's scope other than prospectively after future guidance." (Paul, Hastings, Janofsky & Walker LLP)
[Guidance Overview] Offshore Hedge Funds, and Others, in the Cross-Hairs as IRS Issues Interim Guidance Implementing Code ? 457A
Excerpt: "Section 801(a) of the Tax Extenders and Alternative Minimum Tax Relief Act of 20081 added to the Internal Revenue Code (the 'Code') new Section 457A. Code ? 457A changes the tax rules that apply to deferred compensation arrangements maintained by certain foreign corporations and domestic and foreign partnerships. On January 9, 2009, the IRS issued Notice 2009-8, which provides interim rules implementing Code ? 457A and invites comments on certain aspects of the new law. This client advisory explains the key features of Notice 2009-8." (Mintz, Levin, Cohn, Ferris, Glovsky and Popeo P.C.)
[Guidance Overview] Initial Guidance and Limited Transition Relief for Nonqualified Deferred Compensation Plans Subject to New Section 457A
Excerpt: "The U.S. Treasury Department and the IRS anticipate issuing additional guidance under Section 457A and have requested comments regarding Notice 2009-08 and Section 457A. Until further guidance is issued, taxpayers may rely on this guidance for purposes of Section 457A. Any further guidance that would expand the coverage of Section 457A will be prospective." (McDermott Will & Emery)
IRS Publishes Interim Guidance on ? 457A
Excerpt: "In Notice 2009-8, the Internal Revenue Service has published guidance on the application of ? 457A to nonqualified deferred compensation plans of nonqualified entities. The IRS notes that Section 457A applies to amounts deferred that are attributable to services performed after December 31, 2008." (PLANSPONSOR.com; free registration required)
[Official Guidance] Text of Notice 2009-08: Guidance on 457A; Deferred Compensation by Foreign Corporations and Partnerships (PDF)
38 pages. Excerpt: "Notice 2009-08 [which is scheduled to appear in IRB 2009-4, dated January 26, 2009] provides interim guidance on recently enacted ? 457A which became effective January 1, 2009. Section 457A generally provides that compensation deferred under a nonqualified deferred compensation plan of a nonqualified entity is includible in gross income when there is no substantial risk of forfeiture of the right to such compensation. For this purpose, the term nonqualified deferred compensation plan has the meaning provided under ? 409A(d), subject to some modifications, and the term nonqualified entity means (a) any foreign corporation unless substantially all of its income is (i) effectively connected with the conduct of a trade or business in the U.S., or (ii) subject to a comprehensive foreign income tax, and (b) any partnership unless substantially all of its income is allocated to persons other than (i) foreign persons with respect to whom such income is not subject to a comprehensive foreign income tax, and (ii) tax-exempt organizations. The guidance focuses on identifying which plans are covered by ? 457A, including identifying the plan sponsor and whether the sponsor is a nonqualified entity." (Internal Revenue Service)
IRS Semiannual Regulatory Agenda Includes Further Guidance on 409A
Excerpt: "The IRS has released its semiannual regulatory agenda for Fall 2008, which includes pension and benefit regulations that are currently under development or review." (Wolters Kluwer)
[Guidance Overview] New 409A Guidance Issued and 457A Guidance Expected Shortly
Excerpt: "Employers must ensure that all of their compensatory arrangements are reviewed for 409A compliance and amended as necessary prior to December 31, 2008." (McDermott Will & Emery)
[Guidance Overview] 2008 Year-End Compliance Reminders - for Defined Contribution Plans Not Subject to ERISA (PDF)
2 pages. Excerpt: "This information applies to defined contribution plans, such as qualified governmental plans (including 'grandfathered' 401(k) plans), qualified church plans that do not elect to be covered by ERISA ('non-electing church plans'), 403(b) programs, and section 457 plans that are not subject to Title I of ERISA. Every year, defined contribution plan sponsors should make sure their plans meet certain compliance requirements, including those listed . . . . This publication identifies the materials you need to review and will help you prepare for year-end." (Prudential Retirement)
[Guidance Overview] 2008 Year-End Benefits Planning
5 pages. Excerpt: "Section 409A Compliance . . . Special Rules for 457(f) Plans . . . Qualified Retirement Plans . . . 403(b) Plans . . . Proposed Cafeteria Plan Regulations . . . Medicare Secondary Payer Reporting Requirements" (von Briesen & Roper)
[Guidance Overview] 2008 Year-End Plan Sponsor 'To Do' Lists (PDF)
22 pages; at pages 1-14; bravo! Excerpt: "Attached are seven 'to do' lists that may require you to take action before the end of 2008 or in early 2009. Many of the action items are a result of the Pension Protection Act of 2006 (the 'PPA'). For your convenience we have broken the 'to do' lists into the following seven categories: All Qualified Plans; Section 401(k) Plans; Defined Contribution Plans (other than Section 401(k) Plans); Defined Benefit Plans; Section 403(b) and Section 457(b) Plans; Health and Welfare Plans; [and] Executive Compensation." (Snell & Wilmer)
The IRS Pays a Call on Public Retirement Plans (PDF)
2 pages. Excerpt: "To better understand the difficulties these plans face complying with federal tax requirements, the IRS is going to survey a select group, fewer than 40 government plans. A more comprehensive survey is scheduled to go out later this fall to approximately 200 plans, based on results obtained in the pilot survey. A public report is to be issued by year end. Survey respondents are being assured that any noncompliance issues identified will not result in an IRS examination; instead, respondents will be given directions on how to correct any issues that exist." (Milliman)
[Guidance Overview] Year-End Deadlines for Certain Tax-Exempt Plan Sponsors (PDF)
4 pages. Excerpt: "[Dec.] 31, 2008, is an important date for many sponsors of Internal Revenue Code (IRC) Section 403(b) programs and sponsors of nonqualified deferred compensation arrangements under IRC Section 457(f). With the year-end fast approaching, now is the time for sponsors of IRC Section 403(b) programs and IRC Section 457(f) plans to ensure that their programs and plans are in compliance." (Drinker Biddle & Reath LLP)
[Official Guidance] Text of IRS Notice 2008-102: Pension Plan Limitations for 2009 (Same as October 16 IRS News Release) (PDF)
Appears to be word-for-word identical to the IRS News Release IR-2008-18 of October 16, 2008, which sets for various cost-of-living-adjusted pension plan limitations for 2009. Scheduled for publication in Internal Revenue Bulletin 2008-45, to be dated November 10, 2008. (Internal Revenue Service)
[Guidance Overview] New Section 457A Limits Tax Deferral for Certain Compensation Paid by Tax Indifferent Parties
Excerpt: "The new rules apply in addition to the requirements of existing Code Section 409A and any other provisions with respect to nonqualified deferred compensation, and are effective for amounts deferred that are attributable to services performed after December 31, 2008. For existing deferrals, the deferral amounts will be includible in the later of a) the year 2017, or b) the tax year in which no substantial risk of forfeiture exists concerning the rights to the deferred compensation." (Perkins Coie LLP)
[Guidance Overview] Chart of 415, Etc., Limits Updated for News Release IR-2008-118
The chart of maximum limits subject to inflation indexing at Carol V. Calhoun's employee benefits site has now been amended to include the newly announced 2009 limits. Among other things, the chart shows limits under sections 415, 403(b), 401(k), and 457, as well as the Social Security wage base and Social Security and Medicare tax rates, for 1996-2009. (Calhoun Law Group, P.C.)
[Official Guidance] Text of IRS-Released Pension Plan Limitations for 2009 (PDF)
3 pages. Excerpt: "Effective January 1, 2009, the limitation on the annual benefit under a defined benefit plan under Section 415(b)(1)(A) is increased from $185,000 to $195,000. . . . The limitation for defined contribution plans under Section 415(c)(1)(A) is increased from $46,000 to $49,000. . . . The limitation under Section 402(g)(1) on the exclusion for elective deferrals described in Section 402(g)(3) is increased from $15,500 to $16,500. The annual compensation limit under Sections 401(a)(17), 404(l), 408(k)(3)(C), and 408(k)(6)(D)(ii) is increased from $230,000 to $245,000." (Internal Revenue Service)
[Guidance Overview] Deferred Compensation Provisions to Help Fund Bailout - the Emergency Economic Stabilization Act of 2008
Excerpt: "In an effort to make the bailout package more palatable for reluctant House Republicans, on October 1, 2008, the Senate added provisions that would extend a number of the credits that expired at the end of 2007 or are scheduled to expire at the end of 2008. In addition to these so-called sweeteners, the Senate included the proposal to currently tax the deferred compensation from certain tax indifferent parties." (Pepper Hamilton LLP)
[Guidance Overview] Summary of Amendments and Due Dates for Defined Contribution Plans, 9/18/2008 (PDF)
6 pages. The chart also includes 457(b) and 403(b) plans and covers EGTRRA to the HEART Act. (Fort William LLC)
[Guidance Overview] IRS Examples of Excluding Recurring Part-Year Compensation in 457 and 409A Deferred Comp Rules
Excerpt: "The possibility of exceeding the 457 and 409A compensation limits occurs when nine or ten months of compensation is paid over a 12-month period and extends into another tax year." (Wolters Kluwer)
[Official Guidance] Text of IRS 2008-2009 Priority Guidance Plan, Including Reg Projects for Retirement Benefits, Executive Comp, Healthcare and Other Benefits (PDF)
31 pages; dated September 10, 2008. (Internal Revenue Service)
[Guidance Overview] IRS Carves Out from Code Sections 457(f) & 409A Certain Arrangements by Public School and Other Employees to Have Salary Paid over 12 Months
Excerpt: "Under a common arrangement, public school and other employees who provide services during only a portion of the year can elect to be paid ratably over 12 months. This 'election to defer' payment can trigger the unwanted application of IRC § 457(f) which governs certain deferred compensation plans of tax-exempt entities and state and local governments, and IRC § 409A which otherwise governs amounts deferred under nonqualified deferred compensation plans. IRS recently issued guidance to preclude the unwanted application of IRC §§ 457(f) & 409A to these and other similar arrangements. IRS Notice 2008-62." (Deloitte)
[Official Guidance] IRS 'Employee Plan News' Discusses Notice 2008-62 Anticipating 457(f) Regs as Applied to Certain School Employees (PDF)
Excerpt: "The use of a 12-month pay period that spans two calendar years for employees that actually only work for 9 or 10 months results in compensation earned in one year being deferred to a second year. [Notice 2008-62, issued in early July,] establishes criteria which, if met, excludes arrangements in which school employees are compensated on a 12-month pay period in lieu of the 9 or 10-month actual work period from being considered as deferred compensation and, therefore, not subject to the rules under Code §§457(f) and 409A. In fact, the notice provides that this arrangement wouldn't result in deferred compensation as long as the employee earns less than $186,000." (Internal Revenue Service)
NAGDCA 2008 Survey of State and Local Government Defined Contribution Plans II
Excerpt: "This report contains two sections. The National Summary provides a narrative overview of the key areas involved in administering governmental 457, 401(k), 401(a), and 403(b) plans. The Overall Survey Results section, provided as a PDF, offers a look at the survey through charts and responses from all participating entities." (National Association of Government Defined Contribution Administrators, Inc.)
[Guidance Overview] Annualization Agreements Taken Out of 457 and 409A
Excerpt: "The tax planning probably wasn't what the IRS had in mind when the final Code §409A regulations listed income annualization agreements as possible 409A situations. An example will demonstrate what an annualization agreement is and why the IRS would view it as a deferral arrangement." (SunGard)
[Official Guidance] Aug. 14 Special Edition of IRS Employee Plans News: Announcing Rev. Proc. 2008-50, Including Survey to Practitioners (PDF)
2 pages. Excerpt: "[The] Self-Correction Program . . . has been expanded with respect to employers who discover failures in their plans and have begun the correction process. The time by which a plan sponsor substantially corrects a significant operational failure, and is thereby entitled to use SCP, has been liberalized . . . . [Excess annual additions in DC plans under section 415] will be corrected in accordance with the provisions of this revenue procedure . . . . Streamlined Voluntary Correction Program Application Procedures . . . have been significantly expanded to include the following failures: . . . " (Internal Revenue Service)
[Official Guidance] Text of Rev. Proc. 2008-50: Employee Plans Compliance Resolution System, Updating and Expanding Rev. Proc. 2006-27 (PDF)
179 pages; the document's table of contents does not include page numbers, but it is the version released to the public today. See pages 8 through 10 for a summary of the modifications being made to the previous version of EPCRS (Rev. Proc. 2006-27). Excerpt: "This revenue procedure updates the comprehensive system of correction programs for sponsors of retirement plans that are intended to satisfy the requirements of § 401(a), 403(a), 403(b), 408(k), or 408(p) . . . but that have not met these requirements for a period of time. . . . This revenue procedure modifies and supersedes Rev. Proc. 2006-27." (Internal Revenue Service)
[Opinion] Changes to Consider for Your Governmental 457(b) Plan in 2008
Excerpt: "If your public agency currently maintains an eligible deferred compensation plan pursuant to Code section 457(b), [Chang, Ruthenberg & Long recommend you consider the items listed on the target page], in order to comply with, or take advantage of, recent law changes." (Chang, Ruthenberg & Long PC)
[Guidance Overview] IRS's Correction Procedures for Certain Operational Failures by Nonqualified Deferred Compensation Plans (PDF)
4 pages. Excerpt: "These correction procedures are available to plan sponsors of and participants in nonqualified defined benefit or defined contribution plans that provide for the deferral of compensation (section 409A plans), including section 457(f) plans." (Prudential Retirement)
IRS Issues §457 Guidance on Teachers' Part-Year Compensation
Excerpt: "The Internal Revenue Service has issued a notice of the proposed treatment of recurring part-year compensation under §457(f) and §409A of the Internal Revenue Code." (PLANSPONSOR.com; free registration required)
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