Headlines about "457 plans"

Gathered from the web by the editors at BenefitsLink.com.
[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)

[Official Guidance] Text of IRS Notice 2008-62: Nonapplication of 457(f) and 409A to Certain Recurring Part-Time Compensation Arrangements (PDF)
4 pages. Excerpt: "The [upcoming proposed section 457(f)] regulations to be proposed are expected to address certain types of arrangements involving recurring part-year compensation, including common arrangements involving public school employees who provide services during a 10- month school year and elect to be paid ratably over 12 months. It is expected that the regulations would provide that if certain conditions described below are satisfied, § 457(f) would not apply to such arrangements. It is also expected that a conforming change will be proposed for regulations under § 409A, so that § 409A also will not apply to such arrangements if such conditions are met." (Internal Revenue Service)

[Guidance Overview] A Comparative Look at 401(k), 403(b), and 457(b) Plans (PDF)
Pages 5-8 of 12 pages. (Milliman)

[Guidance Overview] PPA: IRS Provides Guidance on 2008 Distribution Rules (PDF)
Excerpt: "The Pension Protection Act of 2006 (PPA) includes several provisions relating to payments made from various types of pension plans that became effective for distributions made on or after January 1, 2008. On March 5, 2008, the IRS released Notice 2008-30, providing guidance regarding the following provisions: Rollovers to Roth IRAs; Payment of gap period income on excess deferrals; Qualified Optional Survivor Annuities (QOSAs); and Calculation of lump sum benefits in defined benefit plans." (Prudential's Pension Analyst)

Let's Make It Cool to Save
Excerpt: "A coalition of consumer advocates, public policy groups and academics wants to attack our country's dependence on debt by creating a national campaign much like the one used to curb smoking." (Michelle Singletary in the Washington Post; free registration required)

[Guidance Overview] Special Edition of IRS 'Employee Plan News': Overview of Governmental Plans Roundable Held 4/22/2008 (PDF)
Excerpt: "The roundtable was the first step in establishing a dialogue between the IRS and the governmental plans community in an effort to ensure that governmental entities understand the tax qualification requirements applicable to their plans and are aware of the tools and resources available to assist them in ensuring ongoing compliance. IRS representatives acknowledged that there is very little history examining governmental plans. They want to better understand the issues and barriers these plans face in attempting to satisfy tax qualification requirements." (Internal Revenue Service)

[Official Guidance] IRS Solicits Comments: Wages for FICA Purposes Arising from Deferrals and Payments Under Nonqualified Defered Compensation Plans (PDF)
1 page; June 2 deadline. The IRS is soliciting comments concerning an existing final regulation, 'Federal Insurance Contributions Act (FICA) Taxation of Amounts Under Employee Benefit Plans' (Sec. 31.3121(v)(2)-1). Excerpt: "This regulation provides guidance as to when amounts deferred under or paid from a nonqualified deferred compensation plan are taken into account as wages for purposes of the employment taxes imposed by the Federal Insurance Compensation Act (FICA). Current Actions: There is no change to this existing regulation. Type of Review: Extension of currently approved collection." (Internal Revenue Service)

457 Plan Sponsor of the Year - the State of Hawaii
Excerpt: "Participation in the State of Hawaii Deferred Compensation Plan stands at about 35%. That far exceeds the average 21.6% participation rate among state 457 plans, according to data from the National Association of Government Defined Contribution Administrators, Inc. (NAGDCA). Plan officials point to a major education push and a culture that highly values saving as explanations." (PLANSPONSOR.com; free registration required)

With Farm Bill postponed, Future of New Roth 457 Arrangements in 457 Plans Still Uncertain
Excerpt: "The Senate passed a 30-day extension on farm programs legislation, H.R. 2419, commonly known as the Farm Bill, until April 18, 2008. The bill includes a provision that would provide for Roth arrangements in 457 plans – but the future of these new arrangements is uncertain at this time." (ICMA-RC)

[Guidance Overview] IRS Guidance on Automatic Enrollment Plan Designs (PDF)
Excerpt: "These developments affect sponsors of 401(k) plans, 403(b) arrangements, and governmental section 457(b) plans." (Prudential Retirement)

Target-Date and Balanced Funds Are Main Default Options for Plans, But Which One Is Better?
Excerpt: "[During] the 48-year period from 1960 to 2007 . . . [t]he annualized return of the 60/40 balanced fund was 9.26% versus 9.59% for the target-date fund. " (Financial Planning)

Senate Passes Bill on Roth Arrangements in 457 Plans
Excerpt: "Differences between the House and Senate bills will have to be resolved in a conference, which is expected to take place early in 2008. The fact that the Roth 457 provision raises revenue for the Federal Treasury greatly increases its prospects for enactment in this or another bill." (ICMA-RC)

West Virginia Teachers Say They Can't Retire on Balances in Individual Account Plan
Excerpt: "Perry is among the more 19,000 teachers and school officials who rely on 401(k)-style accounts for their retirement. . . . [West Virginia state] officials estimate that the average such account contains less than $34,000. For the 1,100 account holders age 60 or older, only 23 have more than $100,000." (The Times West Virginian)

Fewer 401(k) Savers Would Be Facing Inadequate Nest Eggs if Told Necessary Contribution Rate (PDF)
4 pages. Excerpt: "What participants need is specific numbers on the percentage of their salary they need to save now to achieve their goal -- depending on when they start saving and how well they invest their money. For this purpose, we would like to discuss the concept of retirement sufficiency, which is defined as the nest egg that one needs to accumulate in order to maintain his or her pre-retirement standard of living after retirement." (James E. Turpin, MSPA, and Jane White; reprinted with permission from the ASPPA Journal)

[Guidance Overview] Final Rules for Nonqualified Defined Contribution Deferred Compensation Plans (PDF)
7 pages. Excerpt: "These rules apply to sponsors of and participants in nonqualified defined contribution plans, including section 457(f) plans. These rules do not apply to qualified plans (for example, 401(k) plans), section 403(b) arrangements, or section 457(b) plans." (Prudential Retirement)

Farm Bill Includes Provision for Governmental Roth 457 Plans
Excerpt: "A provision that would allow Governmental Roth 457 plans was included in the Senate Farm Bill approved on Dec. 14, 2007 as part of the Manager's Package of Amendments (Amendment 3855). The House did not move on the Senate version of the farm bill before the holiday recess and the two will have to reconcile the differences in a conference in early 2008." (ICMA-RC)

Updated: Congressional Research Service Fact Sheet on the Retirement Savings Tax Credit (PDF)
2 pages. Excerpt: "The Economic Growth and Tax Relief Reconciliation Act of 2001 (P.L. 107-16) authorized a non-refundable tax credit of up to $1,000 for eligible individuals who contribute to an IRA or an employer-sponsored retirement plan. The credit was first available in 2002, and as enacted in 2001, it would have expired after the 2006 tax year. The Pension Protection Act of 2006 (P.L. 109-280) made the retirement savings tax credit permanent." (U.S. Library of Congress, Congressional Research Service)

Changes in Employee Benefits You Should Be Thinking About as 2007 becomes 2008
Discusses change in minimum vesting requirement, single-sum distributions from defined benefit plans, more. Excerpt: "In our field of law, the wonder and anticipation of the holidays are always joined by two other year-end phenomena: effective dates and deadlines. This eBenefits Alert discusses the most significant changes in the employee benefits arena that we should be thinking about as 2007 becomes 2008. Links to more detailed discussions are included for some topics." (Gray Plant Mooty)

2007 Year-End Compliance Reminders for Defined Contribution Plans not Subject to ERISA (PDF)
3 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 below. This publication identifies the materials you need to review and will help you prepare for year-end." (Prudential Retirement)

Overview: Proposed Regulations for Automatic Contribution Arrangements
Excerpt: "These rules provide a new nondiscrimination safe harbor for 401(k) plans with an automatic contribution arrangement. Further, the rules provide that participants who are automatically enrolled in a 401(k) plan, a 403(b) plan or a 457(b) plan can elect a refund of their contributions within 90 days of enrollment without being subject to early distribution penalties." (Kilpatrick Stockton LLP)

Overview: Required Minimum Distribution Timing
Excerpt: "Individual Retirement Accounts (IRAs), tax sheltered annuities under Code §403(b), Eligible Deferred Compensation plans under Code §457(b) and qualified plans under Code §401(a) generally must provide for the payment of benefits to plan participants not later than the participants required beginning date." (McKay Hochman Co., Inc.)

Overview: Proposes Guidance on More PPA Provisions Relating to Automatic Enrollment
Excerpt: "Coming on the heels of the Department of Labor's final qualified default investment alternative (QDIA) regulations, the IRS on November 7, 2007 issued proposed guidance on other key Pension Protection Act (PPA) provisions designed to encourage 401(k), 403(b), and governmental 457 plan sponsors to adopt automatic enrollment arrangements. 72 FR 63144 (November 8, 2007). The [target page] is a high-level summary of the IRS's proposed regulations; a more in-depth analysis will be published in a future edition of Washington Bulletin." (Deloitte via BenefitsLink.com)

Text of IRS 'Employee Plans News' (Nov. 7) Describing Automatic Enrollment Proposed Regs (PDF)
3 pages. (Internal Revenue Service)

Federal Register Version: Proposed IRS Regs on Automatic Deferrals (Contributions) Under 401(k), 403(b), 457 Plans (PDF)
12 pages. (Internal Revenue Service)

Text of Employee Plans News, Special Edition, November 7, 2007 (PDF)
3 pages. Subject: IRS Proposes Rules on Automatic Contribution Arrangements (Internal Revenue Service)

Retirement Plan Fee Disclosure Reviewed
Excerpt: "The Ways and Means Committee held its first hearing on fee disclosure on Tuesday, Oct. 30, 2007. Although there have been other hearings to date on fee disclosure, this is the first hearing in the committee that has jurisdiction over governmental 457 plans . . . . Three themes emerged in the testimony . . . ." (ICMA-RC)

Overview: Auto Enrollment Guidance
Excerpt: "The Treasury Department and the Internal Revenue Service (IRS) issued proposed regulations implementing new rules that facilitate the adoption of automatic contribution arrangements in 401(k), 403(b), and 457 plans." (planadvisor)

Text of Proposed Regs on Automatic Enrollment in 401(k), 403(b), 457 Plans for 2008 Plan Year (PDF)
51 pages. Excerpt: "Sections 401(k)(13), 401(m)(12), and 414(w), and the amended provisions of sections 411(a)(3)(G) and 4979(f), are effective for plan years beginning on or after January 1, 2008. These regulations are proposed to be effective for plan years beginning on or after January 1, 2008. Taxpayers may rely on these proposed regulations for guidance pending the issuance of final regulations. If, and to the extent, the final regulations are more restrictive than the guidance in these proposed regulations, those provisions of the final regulations will be applied without retroactive effect." (Internal Revenue Service)

On the Web -- A Ways and Means Retirement Savings Survey
Excerpt: "Recently the Committee on Ways and Means held a hearing examining the appropriateness of fees associated with 401(k), 403(b) and 457 retirement plans. In an effort to help us better serve you, please take a minute to respond to this survey to let us know how you feel and to ensure you receive information that suits your interests." (U.S. House Committee on Ways and Means)

Text of Law Firm's Comments on IRS Notice 2007-62 (PDF)
6 pages. The commenting law firm recommends that Treasury and the IRS reconsider whether the definition of 'substantial risk of forfeiture' described in the final regulations under Section 409A is appropriate for purposes of Section 457(f). Specifically, employees of governmental and tax-exempt organizations should not be prohibited from making elective deferrals of compensation, so long as the employee's rights to the amounts deferred are conditioned on either (i) the performance of substantial future services, or (ii) the occurrence of a condition related to a purpose of the compensation. (Polsinelli Shalton Flanigan Suelthaus pc)

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