Headlines about "Ret plans - amendments required, incl. EGTRRA"
Gathered from the web by the editors at BenefitsLink.com.
[Guidance Overview] 403(b) Document Deadline Approaching
Excerpt: "Final Treasury Regulations issued under Internal Revenue Code ('Code') Section 403(b) generally require all 403(b) arrangements to be maintained pursuant to a written plan document. Originally required to be in place by December 31, 2008, in late 2008 the IRS extended the documentation deadline to December 31, 2009. Accordingly, employers that maintain a 403(b) plan or otherwise make such an arrangement available to their employees should confirm that their 403(b) documentation is in compliance immediately." (Seyfarth Shaw)
[Guidance Overview] Reminders for Qualified Retirement Plans of Imminent PPA '06 Compliance Deadlines
Excerpt: "This Compliance Alert reminds sponsors of qualified plans about imminent deadlines for compliance with certain provisions of the Pension Protection Act of 2006 (PPA '06). Most significantly, by December 31, 2009, sponsors of calendar-year plans must adopt amendments required by PPA '06. Moreover, sponsors of defined benefit plans that chose to provide PPA '06-required individual benefit statements to all active, vested participants every three years (instead of providing an annual notice of availability upon request) are reminded that the first of these periodic statements must be provided for the 2009 plan year, subject to a delayed effective date for collectively bargained participants." (Segal Company)
[Guidance Overview] 2009 Required Minimum Distributions: Plan Sponsors Have Decisions to Make by November 30, 2009
Excerpt: "Plan sponsors must decide by November 30, 2009, how the plan will treat 2009 RMDs. Plan sponsors have three choices: . . . ." (Warner Norcross & Judd)
[Guidance Overview] Pension Plan Amendments Required to Reflect Section 436 Contingent Limitations on Benefits
Excerpt: "Time is running out for sponsors of defined benefit pension plans to adopt amendments that must be made by the end of the year to provide for limits on benefit payments and benefit accruals as required under section 436 of the Internal Revenue Code. These limits apply in the event that the plan falls short of funding targets established under the Pension Protection Act of 2006 (PPA). Limits start to apply if the plan's adjusted funding target attainment percentage (AFTAP), as certified by the plan's actuary, falls below 80 percent, and additional and stricter limits apply if the plan's AFTAP falls below 60 percent." (Faegre & Benson)
[Guidance Overview] Employers Must Make 2009 Required Minimum Distribution Decisions by November 30 (PDF)
Excerpt: "Pursuant to Notice 2009-82, employers must decide by November 30, 2009, whether to: * Suspend all RMDs for 2009, unless the participant affirmatively requests the distribution; * Distribute all RMDs for 2009, unless the participant affirmatively requests the waiver; * Continue RMDs for 2009 in accordance with plan provisions without a choice participants. In addition, employers will need to decide by November 30, 2009, whether and to what direct rollovers of distributions containing 2009 RMDs will be offered to participants." (Womble Carlyle)
[Guidance Overview] PPA-Related Cash Balance Plan Amendments Required by End of 2009
Excerpt: "A number of provisions in the Pension Protection Act of 2006 (PPA) apply to cash balance plans, including: (1) a requirement that a plan's interest crediting rate not exceed a market rate of return; and (2) a clarification that the payment of a participant's vested cash balance account satisfies the minimum lump sum requirements of sections 411(c) and 417(e) of the Internal Revenue Code." (Hewitt)
[Guidance Overview] Does Your Qualified Retirement Plan Need Amendment This Year? (PDF)
4 pages. Excerpt: "This advisory is to remind plan sponsors of deadlines for amending qualified retirement plans. Some amendments must be completed by December 31, 2009 (for calendar year plans). Others must be completed by January 31, 2010 (for Cycle D plans). Still others must be completed by the deadline for filing the plan sponsor's 2009 tax return ('interim' amendments). This advisory identifies those plans that must be amended now or in the near future." (Alston+Bird)
[Guidance Overview] Retirement Plans Must Be Amended Before Year End
Excerpt: "The end of the calendar year is soon approaching. For sponsors of qualified benefit plans, this means that plan amendments must be adopted and certain notices may need to be distributed. {The target page] is a summary of the major amendments and notices that apply to most qualified retirement plans. The IRS has also released the new retirement plan limits for 2010 that are available here. During the year end flurry of activity, employers need to focus on these deadlines, notice requirements and new limits. If employers have not yet been contacted by their plan's service provider, employers should take action now to avoid being in noncompliance." (Littler Mendelson P.C.)
IRS Delays Retirement Age Rule for Public Pension Plans
Excerpt: "The Internal Revenue Service has given sponsors of state and local government pension plans a second extension to comply with an IRS rule that defines the 'normal' retirement age for a pension plan. In Notice 2009-86 published Wednesday, the IRS said public plan sponsors generally will have until Jan. 1, 2013, to comply with the rules. The IRS originally set a Jan. 1, 2009, effective date, but last year delayed the effective date to Jan. 1, 2011. The IRS said the latest extension is intended to give the agency and the Treasury Department more time to consider comments made by public plan sponsors on the impact of the regulations." (Business Insurance)
[Official Guidance] Text of IRS Notice 2009-86: Notice of Extension Until 2013 for Governmental Plans to Comply with NRA Distribution Regulations (PDF)
3 pages. Excerpt from press release: 'Notice 2009-86 states that the IRS and Treasury intend to extend the time by which a governmental plan must comply with final regulations on distributions from a pension plan upon attainment of normal retirement age ('the NRA regulations') beyond the date previously announced in Notice 2008-98 . . . .These regulations were published in the Federal Register . . . . on May 22, 2007. Taking into account this extension, the NRA regulations will be effective for a governmental plan (as defined in ? 414(d) of the Internal Revenue Code) for plan years beginning on or after January 1, 2013. This notice does not change the effective date of the NRA regulations for a plan that is not a governmental plan or modify the relief previously provided in Notice 2007-69, 2007- 2 C.B. 468." (Internal Revenue Service)
[Guidance Overview] Governance and Compliance Advisory Update for Retirement Plans: October 2009
Excerpt: "September saw an increase in significant retirement plan regulatory activity." (Towers Perrin)
[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.)
[Guidance Overview] GINA Regulations Require Redesign of Health Plan Wellness and Disease Management Incentives
Excerpt: "The Bulletin provides an overview of GINA's prohibitions; discusses the regulations involved in using health-risk assessments to ask questions about an individual's family medical history; and briefly outlines the action steps for sponsors of group health plans. Plan sponsors must conduct a compliance review immediately to ensure that: Health-risk assessments (including those designed by outside vendors) and any associated wellness policies and procedures comply with GINA's broad prohibition on collecting genetic information; and Wellness or disease management programs do not collect or use genetic information to screen individuals for eligibility for benefits under the plan." (The Segal Group, Inc.)
[Guidance Overview] Regulation Deadline Approaches for Section 403(b) Plan Sponsors
Excerpt: "Section 403(b) tax-sheltered annuity plans became subject to an updated and revised set of regulations effective Jan. 1, 2009. One of the requirements of the new regulations is that the plan sponsor must maintain a written plan document that satisfies the regulations' various rules and conditions[.]" (McGuireWoods LLP)
[Guidance Overview] Plan Termination 2009
Excerpt: "To terminate a plan always requires bringing it up-to-date with any law and regulatory changes that occurred since the document was last updated." (McKay Hochman Co., Inc.)
[Official Guidance] Text of Sept. 25, 2009 Issue of IRS 'Employee Plan News'; Discusses 2010 Interest Rates for DB Plan Funding (PDF)
3 pages. Excerpt: "This Special Edition of Employee Plans News contains the following articles: [1] 'Upcoming Funding Regulations' states that the IRS and the Department of Treasury expect to issue final regulations in the near future that will cover measurement of assets and liabilities under ?430, and the application of benefit restrictions of ?436 for single-employer defined benefit plans. It also provides assistance to actuaries in issuing the adjusted funding target attainment percentage (AFTAP) for 2009. [2] 'Additional Guidance on 2009 Waiver of Required Minimum Distributions' explains key provisions of Notice 2009-82, issued on September 24, 2009, that provides guidance, transitional relief, sample plan amendments and answers to questions related to the waiver of 2009 required minimum distributions." (Internal Revenue Service)
[Guidance Overview] IRS Provides Guidance, Transition Relief, and Sample Amendments on 2009 RMD Waivers Under Recovery Act
Excerpt: "Sponsors may adopt the sample amendments, with appropriate modifications to conform to their plan's terms and administrative procedures, without concern that the amendment will adversely affect their plan's favorable opinion, advisory, or determination letter, and more importantly, without concern that a conflict between plan practices and plan operation in 2009 through November 30 will create a qualification issue. . . . Participants will benefit from the limited-time opportunity to roll over amounts they may have thought did not qualify." (Employee Benefits Institute of America)
[Guidance Overview] IRS Guidance on Rollover Notices, Rollovers to Roth IRAs, Automatic Contribution Arrangements and Other Retirement Savings Incentives (PDF)
4 pages. Excerpt: "The IRS recently released three revenue rulings and five notices on provisions intended to spur retirement savings. One notice provides a new model 402(f) notice for eligible rollover distributions upon termination of employment. Another notice provides guidance clarifying the rules for rollovers from qualified plans to Roth IRAs. The other guidance provides sample plan amendments for adding automatic enrollment features to 401(k) plans and SIMPLE IRAs, affirms that default contribution percentages under automatic contribution arrangements may automatically increase as employee compensation increases, and confirms that employees may be allowed to contribute the dollar equivalent of unused paid time off (PTO) into their 401(k), profit-sharing, or stock bonus plans." (Buck Consultants)
[Guidance Overview] IRS's Sample Plan Amendments for Adding 401(k) Automatic Contribution Features
Excerpt: "The IRS has issued two sample plan amendments in IRS Notice 2009-65 that will enable employers to add automatic contribution features to their 401(k) plans. Sample Amendment One may be used to add an automatic contribution arrangement to a 401(k) plan. Sample Amendment Two may be used to add an eligible automatic contribution arrangement (authorizing withdrawals of elective deferrals) to a 401(k) plan." (Wolters Kluwer)
[Guidance Overview] IRS's Two Sample Plan Amendments on the One-Year Waiver of Required Minimum Distribution
Excerpt: "According to Notice 2009-82, the amendments provide that participants and beneficiaries can choose to receive or not to receive the 2009 RMD and provide for the rollover of certain 2009 RMDs. The tax agency document said sponsors may need to tailor the sample amendment to their plan's particular terms and administration procedures and must adopt the amendment no later than the last day of the first plan year beginning on or after January 1, 2011 (January 1, 2012, for governmental plans)." (PLANSPONSOR.com; free registration required)
[Official Guidance] Text of IRS Notice 2009-82: Waiver of 2009 Minimum Distributions (PDF)
12 pages. Excerpt: "[This notice provides] transition relief through November 30, 2009 for a plan that is not operated in accordance with its terms with respect to waived required minimum distributions and certain related payments; sets out rollover relief with respect to waived required minimum distributions and certain related payments, including an extension of the 60-day rollover period to November 30, 2009 for certain of the distributions; and answers questions that have been raised regarding the waiver of 2009 required minimum distributions under WRERA. . . . [T]he notice also provides two sample plan amendments that give recipients a choice as to whether to receive waived required minimum distributions and certain related payments and that specify the application of the direct rollover rules to the distributions. The sample amendments can be used by plan sponsors that are uncertain as to the treatment under plan terms of waived required minimum distributions and certain related payments or that otherwise desire to give recipients a choice as to whether to receive such distributions." (Internal Revenue Service)
[Guidance Overview] Tax-Qualified Retirement Plans: Year-End Action Items and the HEART Act (PDF)
Excerpt: "[This] checklist describes potential year-end amendments and notices that may be necessary for tax-qualified retirement and savings plans. The list is not exhaustive, but is intended to provide a reminder of the general issues that may need to be reviewed and considered. Also included is information regarding the Heroes Earnings Assistance and Relief Tax Act of 2008 (the HEART Act) and its impact on qualified retirement plans. Although the HEART Act does not require plan amendments by the end of the year, its required changes should be considered now.Additionally, this LawFlash includes a reminder that 403(b) plans must update plan documents to comply with the final 403(b) regulations by December 31, 2009." (Morgan, Lewis & Bockius LLP)
[Guidance Overview] Guide for Plan Sponsors to Ensure Compliance on Several PPA-Imposed Requirements and Deadlines Between Now and the End of the Year
Excerpt: "Between now and the end of 2009, pension plan sponsors of calendar-year plans will need to attend to a host of PPA compliance matters, including final 2008 plan year funding decisions, 2009 AFTAP certifications, PBGC filings and premium payments, 2008 Form 5500 filings (including elections related to yield curves, asset valuation, and credit balances), required benefit statements to participants, and updating of plan documents to reflect changes due to PPA. [The chart should aid sponsors in ensuring upcoming compliance requirements are satisfied." (JPMorgan Chase & Co.)
[Guidance Overview] IRS Quality Assurance Bulletin (QAB) FY-2006-3 and Restating for EGTRRA
Excerpt: "The QAB states that IRS document specialists will begin enforcing these principles as part of the EGTRRA document review cycle. Therefore, it is important to watch for this and remove or clarify this type of provision so that it is in compliance when restating from a GUST to an EGTRRA document. Plan sponsors will be asked to remove or clarify plan language if a reviewer discovers a plan that includes a provision which defines an exclusion classification by reference to service." (McKay Hochman Co., Inc.)
[Guidance Overview] If a 403(b) Is Terminating in 2009, Must the Plan Be Restated for Final 403(b) Regulations Before Termination?
Excerpt: "Yes. The final 403(b) regulations required 403(b) plans to have a written plan document in place by January 1, 2009. On December 11, 2008, the IRS issued Notice 2009-3 in which the deadline for adopting a written plan for a 403(b) was changed to December 31, 2009, provided the 403(b) plan operates under the final 403(b) regulations for the 2009 calendar year and adopts a written plan effective as of January 1, 2009 by December 31, 2009." (McKay Hochman Co., Inc.)
[Guidance Overview] IRS Extension of Remedial Amendment Period for Governmental Plans (PDF)
Excerpt: "The IRS has modified the staggered determination letter submission system for individually designed governmental plans. In Revenue Procedure 2009-36, the IRS provides that effective August 31, 2009, the remedial amendment cycle for governmental plans will not end until the 91st day after the close of the first legislative session beginning more than 120 days after a determination letter is issued to the plan. In addition, the IRS also formalized its November 2008 guidance that governmental employers may make a one-time election to file for a determination letter under Cycle E rather than Cycle C." (Buck Consultants)
Important New Online Official Survey Asks How the New Retirement Plan IRS Determination Letter Process is Working, How It Might Be Improved
An IRS advisory council is studying the retirement plan document determination letter process. A new online survey form asks for the views of employers, benefits attorneys, third-party administrators, consultants, providers of master & prototype documents, and other stakeholders. In 2005 the IRS radically changed the determination letter process by creating 5-year and 6-year cycles for amending and filing individually designed, volume submitter, and M&P retirement plan documents. Further changes were made in 2007. The advisory council wants to know how the process is working and how it might be improved, including the process for making required amendments or restatements. To learn more or take the survey now, click on the following address or copy and paste it into your web browser: http://www.surveymonkey.com/s.aspx?sm=EL2r2msS3KJI07X_2fq67w6w_3d_3d (IRS Advisory Committee on Tax Exempt and Government Entities (TE/GE))
[Official Guidance] IRS Rev. Proc. 2009-36: Leeway Provided in Remedial Amendment Cycle for Governmental Retirement Plans (PDF)
4 pages. Excerpt: "This revenue procedure modifies Rev. Proc. 2007-44 . . . to provide that a remedial amendment cycle with respect to a governmental plan . . . will not end before the expiration of the 91st day after the close of the first legislative session that begins more than 120 days after a determination letter is issued for the plan (or after the occurrence of certain other events relating to a determination letter application), provided that the application for the determination letter was timely submitted to the Service. This revenue procedure also modifies Rev. Proc. 2007-44 to provide that the sponsor of an individually designed governmental plan may elect Cycle E (instead of Cycle C) as the initial (EGTRRA) remedial amendment cycle for the plan. This change (which was announced in the November 5, 2008, Special Edition of the EP News http://www.irs.gov/pub/irs-tege/se1108.pdf is a one-time modification that does not apply in determining a plan's remedial amendment cycle after the initial (EGTRRA) cycle." (Internal Revenue Service)
[Guidance Overview] IRS Receives Feedback and Questions on Employee Plans Compliance Resolution System
Excerpt: "Joyce Kahn, manager of the IRS's Employee Plans Voluntary Compliance Division, gave practitioners an update on the IRS's employee plans compliance resolution system (EPCRS) during a July 27, 2009 telephone forum. . . . Kahn explained that employers can use the self-correction program to correct insignificant errors in an employee benefit plan at any time during the plan year. However, she reported that some taxpayers were unclear as to the exact definition of an insignificant error. " (Wolters Kluwer)
[Guidance Overview] Employers Must Act by Last Day of 2009 Plan Year to Amend Tax-Qualified Plans Pursuant to PPA
Excerpt: "The Pension Protection Act of 2006 made numerous changes to rules regarding employee benefit plans, including tax-qualified defined benefit and defined contribution plans. Although the changes took effect at various dates (and plans have been required to operationally comply with each change as of the specified effective date), amendments reflecting these changes generally do not have to be adopted until the last day of the plan's 2009 plan year (December 31, 2009 for calendar year plans). [A 7-page Summary of Key Changes is at http://www.perkinscoie.com/files/upload/BUS_09-07_PPAchangessummary.pdf.]" (Perkins Coie LLP)
[Opinion] American Academy of Actuaries Comments on IRS 2009-2010 Guidance Priority List and Provides List of Key Issues Awaiting Guidance (PDF)
3 pages. Excerpt: "The following attachment contains a list of items the committee would like to see addressed by the IRS, categorized by preference/priority. It is important that the IRS provide proposed guidance early, so comments can be made and final guidance issued on a timely basis. The attached list is what we consider key issues awaiting guidance. This is not a comprehensive list of all the guidance needed but rather the most important needs for 2009-2010. We list the issues in order of urgency within broad topic areas such as funding, hybrid plan, and benefit restriction rules." (American Academy of Actuaries)
[Guidance Overview] The Worker, Retiree, and Employer Recovery Act of 2008 (WRERA) Provisions by Effective Date
Chart. (McKay Hochman Co., Inc.)
[Official Guidance] Summer 2009 Issue of 'Employee Plans News' from IRS (PDF)
13 pages. Excerpt: "This edition contains the following articles: . . . Two-Year Adoption/Submission Period for DC Pre-Approved Plans Expires on April 30, 2010 . . . The EPCU Insider . . . Free Phone Forums . . . A New Look for EP Large Case Program Web Page . . . Employee Plans Published Guidance . . . Calendar of EP Benefits Conferences." (Internal Revenue Service)
[Guidance Overview] Presentations by IRS at April 2008 Governmental Plans Roundtable
Powerpoint slides. Excerpt: "The following sessions were presented at the Roundtable: Navigating the Staggered Remedial Amendment Period . . . Requirements Relating to Section 414(d) Governmental Plans . . . EPCU and Examinations Efforts . . . Federal State and Local Governments (FSLG) . . . EPCRS & Governmental Plans . . ." (Internal Revenue Service)
[Opinion] SPARK Institute Comments on Proposed 403(b) Prototype Document Program and Model Language (PDF)
14 pages. Excerpt: "The SPARK Institute believes that the most significant revision that is necessary to expand the availability of the prototype program is to permit the use of a vesting schedule in the prototype plan." (SPARK Institute)
[Opinion] ASPPA Comments on Proposed 403(b) Prototype Document Program
13 pages. Excerpt: "[T]he proposed program should much more closely mirror the current M&P/volume submitter program. Accordingly, we believe that the ?403(b) prototype program needs significant modification from its proposed form. Such changes will assist practitioners (many of whom work in both the ?403(b) and ?401(a) plan markets) by having consistent procedures and requirements. This consistency will also help the Service staff in reviewing the ?403(b) plans since the requirements will be similar to the ?401(a) program. Although we appreciate the goal of keeping the ?403(b) program simple, the quest for simplicity under the draft revenue procedure will undermine the functionality of the program." (ASPPA (American Society of Pension Professionals and Actuaries))
[Opinion] American Benefits Council Comments on Proposed 403(b) Prototype Document Program (PDF)
3 pages. Excerpt: "The Council believes that some minor changes to the prototype program [proposed in IRS Announcement 2009-34] will make it much more effective and usable by its 403(b) plan sponsor members. . . . [T]he Council recommends a few changes below that would address a wider variety of common plan designs than would be permitted under the original proposal." (American Benefits Council)
IRS Semiannual Regulatory Agenda Includes Filing Solution for Schedule SSA
Excerpt: "The IRS has released its semiannual regulatory agenda for Spring 2009, which includes pension and benefit regulations that are currently under development or review." (Wolters Kluwer)
[Guidance Overview] PBGC Semiannual Regulatory Agenda Addresses USERRA Benefits
Excerpt: "The Pension Benefit Guaranty Corporation (PBGC) has released its semiannual regulatory agenda for Spring 2009, which outlines regulations that have been selected for amendment during the next year, as well as any regulations that have been recently finalized." (Wolters Kluwer)
[Guidance Overview] IRS Auditors Provide Tips and Trends on Retirement Plan Compliance
Excerpt: "The U.S. Internal Revenue Service provides compliance trends and tips for qualified retirement plans from their Employee Plans Team Audit (EPTA) Program Web pages. These pages highlight plan mistakes that IRS plan auditors see recurring in large case audits and voluntary compliance submissions. The trends are now categorized by plan types including multiemployer plans, 401(k) plans, defined benefits plans and 403(b), 457 and other governmental plans." (International Foundation of Employee Benefit Plans)
[Guidance Overview] The IRS's Employee Plans Compliance Resolution System for Retirement Plans
Excerpt: "In a perfect world, all retirement plans would be amended on time and operated properly according to the plan terms and the law. However, we don't live in a perfect world and the IRS's Employee Plans Compliance Resolution System (EPCRS) acknowledges that fact. EPCRS lets plan sponsors correct certain common plan failures to satisfy the plan qualification requirements without suffering the severe penalty of plan disqualification. This article provides an overview of EPCRS and how you can save a retirement plan from disqualification." (Chang Ruthenberg & Long PC)
[Guidance Overview] Detailed Description of Code Section 436 Restrictions on Single-Employer Defined Benefit Plans (PDF)
18 pages. Excerpt: "The Pension Protection Act of 2006 . . . established a new code section -- section 436 -- that imposes benefit restrictions for underfunded single-employer defined benefit plans. . . . This report examines the proposed regulations and the impact they will have on single employers that maintain defined benefit plans during 2008 and beyond. . . . Because the rules affect the plan's qualification and the sponsor's fiduciary responsibility under Title I of ERISA, they are important not only to actuaries, but to employee benefits attorneys as well." (Prof. Kathryn J. Kennedy; Reprinted by Permission of Tax Analysts; All Rights Reserved)
[Guidance Overview] Towers Perrin Monthly Retirement Regulatory Round-Up, April 2009 (PDF)
5 pages. Excerpt: "The Monthly Regulatory Round-Up is a high-level summary of legal and regulatory developments that occurred during January 2009 that may be relevant to large employers. Developments are sorted according to federal legislative developments, federal regulatory guidance, other developments (e.g., significant litigation, studies, select state law developments)." (Towers Perrin)
More 403(b) Guidance on the Way, Key IRS Official Says
Excerpt: "The IRS's Employee Plans (EP) unit will issue more guidance on how to satisfy the requirements for 403(b) plans, EP Tax Law Specialist Robert Architect stated on April 16, 2009 in an IRS phone forum. The IRS will update the EPCRS program to address 403(b) plans, Architect said. The revisions will be issued in the 'near term,' he indicated. Initially, the revised procedures will allow plans to correct operational failures." (Wolters Kluwer)
[Guidance Overview] IRS's Proposed Prototype Program for 403(b) Plans
Excerpt: "Those sponsors not electing to adopt a 403(b) prototype plan or that are otherwise unable to do so because of a complex plan design or for other reasons should continue to ensure compliance with the final 403(b) regulations, and should continue to monitor guidance from the IRS to determine whether the IRS intends to approve 403(b) plans via a program similar to the determination letter program in place for 401(k) plans. Announcement 2009-34 reiterates the IRS's intent to establish a determination letter program for individually designed 403(b) plans, but, as with prior guidance, the Announcement does not specify a date as of which such program will be established." (McDermott Will & Emery)
[Official Guidance] Text of IRS 'Employee Plans News' April 2009 Special Edition, Describing Proposed 403(b) Procedures (PDF)
2 pages. Excerpt: "This Special Edition contains the IRS's request for comments on drafts of a revenue procedure and sample plan language for ?403(b) prototype plans and highlights of the draft revenue procedure." (Internal Revenue Service)
[Official Guidance] Text of Draft Document by IRS: 403(b) Plan Listing of Required Modifications and Information Package (LRM) (PDF)
67 pages. Excerpt: "The Section 403(b) Prototype Program will operate generally in the same manner as the current Master and Prototype Program for plans qualified under section 401(a) of the Internal Revenue Code. A Section 403(b) Prototype Plan sponsor will submit a section 403(b) plan document to the IRS for review. . . . The DRAFT sample language is based on language previously developed for other IRS prototype plan programs . . . ." (Internal Revenue Service)
Listing of IRS Published Guidance for January-March 2009
The target page links to guidance published by the Service relating to retirement plans: Treasury Regulations; Revenue Rulings; Revenue Procedures; Notices; and, Announcements. (Internal Revenue Service)
[Guidance Overview] Public Sector Retirement Plan Compliance Wrap-up (PDF)
Excerpt: "This Bulletin discusses the following major public sector provisions of [The Worker, Retiree and Employer Recovery Act of 2008 (WRERA)]: Rate of Return for Crediting Interest, Rollovers, Temporary Waiver of Required Minimum Distributions, and Self-Funded Plans Eligible for Special Tax Exclusion for Retired Public Safety Officers under PPA'06. This Bulletin also provides information about extensions by the Internal Revenue Service (IRS) of several important compliance deadlines for public sector retirement plans." (The Segal Group, Inc.)
[Official Guidance] Nonamenders and the Voluntary Correction Program
Excerpt: "Voluntary Correction has written an explanation of the nonamender process under the VCP. This explanation will tell you all you need to know about filing for relief under VCP for nonamender failures, including when you can file (with examples of when Appendix D or F should be used) and when a determination letter should be filed as part of a VCP submission." (Internal Revenue Service)
[Official Guidance] Spring 2009 Issue of IRS 'Employee Plan News'; Includes Update on ERPA Program (PDF)
Excerpt: "This edition contains the following articles: * Know a Nonamender? Here's what you need to know NOW... * Final Regulations Issued for Automatic Contribution Arrangements * Sample Plan Language - Transfer of an ESOP's S Corporation Shares to Prevent a Nonallocation Year * The EPCU Insider -The Multiemployer Actuarial Certification Project ? Defined Benefit Plan Actuarial Certification Errors * ERPA - CPE Sponsor Program * Web Spins - The Retirement Plans Site * Employee Plans Published Guidance * Critical Priorities?With Monika Templeman - Today's Discussion: Update on the Enrolled Retirement Plan Agent Program * Attention All 2009 Form 1099-R Issuers * Highlights of the Retirement News for Employers * The Corner of Forms & Pubs * We're Glad You Asked! * 403(b) Phone Forum * DOL Corner * PBGC Insights * Calendar of EP Benefits Conferences" (Internal Revenue Service)
ESOP Restatements and Submissions Present Opportunities
Excerpt: "[A]ll companies sponsoring ESOPs should be aware that their plan documents must be restated and submitted to the IRS every five years for a letter of determination of their tax qualified status. What they may not realize is that the ESOP restatement process offers potentially unrealized opportunities for cost efficiency, employer protection and creative re-design." (Chang Ruthenberg & Long)
[Guidance Overview] PPA Technical Corrections to Defined Benefit Governmental Plans and Non-Electing Church Plans (PDF)
2 pages. Excerpt: "On December 23, 2008, President Bush signed into law the Worker, Retiree, and Employer Recovery Act of 2008 (WRERA), which contains technical corrections to the Pension Protection Act of 2006 (PPA). Some of the provisions of WRERA affect defined benefit governmental plans and plans sponsored by churches that do not elect to be covered by ERISA ('non-electing church plans')." (Prudential Retirement)
[Guidance Overview] Pension Protection Act Amendments that are Required in 2009
Excerpt: "It doesn't matter what Cycle your plan is on -- PPA amendments must be done this year. And for Cycle D plans, this means the amendment must be adopted by 12/31/09, not by 1/31/10, when Cycle D plans are due at the IRS." (Stevenson Keppelman Associates)
[Guidance Overview] Rev. Proc. 2008-50: Some Changes to the EPCRS Non-Amender Rules
Excerpt: "Effective January 1, 2009 (or if chosen by the employer as of September 2008), the IRS released Rev. Proc. 2008-50, updating the Employee Plans Compliance Resolution System (EPCRS). EPCRS is an IRS program that allows for plan sponsors to proactively correct mistakes, ultimately protecting a plan's tax-favored status. Included in the update are important rules regarding the process of voluntarily correcting a failure to amend a qualified retirement plan in a timely manner." (McKay Hochman Co.)
[Guidance Overview] Final IRS Automatic Contribution Regulations
Excerpt: "On February 23, 2009, the IRS released final automatic contribution regulations. The regulations cover two major changes to 401(k) rules made by the Pension Protection Act of 2006 (PPA) ? the PPA automatic contribution safe harbor and rules allowing the distribution of 'automatic' contributions where a participant elects out (within 90 days) of an automatic contribution program. Not all sponsors of automatic contribution programs will be interested in the safe harbor. Often, automatic contributions alone -- that is, without safe harbor matching contributions, vesting, etc. -- are sufficient to solve a sponsor's 401(k) nondiscrimination testing issues. But the new 90-day distribution rules are likely to be of interest to most sponsors of automatic contribution arrangements, particularly those with immediate eligibility." (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] Summary Plan Description and Summary of Material Modifications Requirements
Excerpt: "With only a few exceptions, it has been the law for more than 30 years that the plan administrators for all employee pension plans and employee welfare plans that are subject to ERISA are required to issue and periodically update SPDs for those plans. This is not news, but worth mentioning especially now that many plan sponsors have updated plans for recent law changes." (Dorsey & Whitney LLP)
[Official Guidance] Joyce Kahn, IRS Voluntary Compliance Manager, Wants Comments -- Good or Bad -- from Practitioners and Employers on the Self-Correction Program; Short Survey Request
March 20 is the last day to take the survey. Excerpt: "We are looking for feedback on the Employee Plans Compliance Resolution System. IRS Employee Plans is conducting a short, voluntary, and anonymous survey designed to gauge the relevance and usefulness of the Self-Correction Program (SCP). Your participation in this survey will greatly assist us in making our programs more responsive to the needs of plan sponsors, employees, and beneficiaries of the retirement plan system. The anonymous survey should takes less five minutes to complete. We thank you in advance for your participation and look forward to future improvements that work for you!" (Internal Revenue Service)
[Guidance Overview] Practioners' Forum Discussion on Qualified Retirement Plans: Timing of Interim and Discretionary Amendments
Excerpt: "The [target page] is a summary of an informal discussion of employee benefit practitioners held in Washington, D.C. on January 15, 2009. The topic involved the deadlines prescribed by the IRS in Rev. Proc. 2007-44, 2007-28 I.R.B. 54, for adopting interim and discretionary amendments to qualified retirement plans." (Tax Management Inc.)
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