Pension Bill Signed By President

[Appleby]

http://www.sia.com/press/2006_press_releases/29971793.html

[Appleby]

http://www.whitehouse.gov/news/releases/20...20060817-1.html

[david rigby]

IRS summary: http://www.irs.gov/pub/irs-tege/rne_sum06.pdf

IRS Rollover chart: http://www.irs.gov/pub/irs-tege/rollover_chart.pdf

[Appleby]

TECHNICAL EXPLANATION OF H.R. 4,

THE “PENSION PROTECTION ACT OF 2006,”

AS PASSED BY THE HOUSE ON JULY 28, 2006,

AND AS CONSIDERED BY THE SENATE

ON AUGUST 3, 2006

http://benefitslink.com/boards/index.php?showtopic=32951

[Bird]

pax, the rollover chart is interesting but has nothing to do with this thread, does it? In fact it appears to reflect pre-PPA law.

(Not complaining, just a little confused.)

[Appleby]

On the subject of rollover, would you agree that under PPA 2006 , payout options for beneficiary IRAs have remained the same as they were before PPA? I.e. , once the rollover contribution is made to the IRA, the beneficiary can designate a successor beneficiary( assuming the IRA agreement allows)…and the successor beneficiary can continue distributions, should the first beneficiary die, providing the distributions are taken over the life expectancy used by the first generation beneficiary?

[Bird]

Appleby, I think that's correct.

[Appleby]

Thanks Bird

[Appleby]

Am I missing something, or is the text of the explanation one year off for the “Additional IRA contributions for certain employees (secs. 25B and 219 of the Code)” provision.

The explanation says “Under the provision, an applicable individual may elect to make additional IRA contributions of up to $3,000 per year for 2006-2009”. This seems to say that 2006 the contribution can be made for 2006.

Under effective date, it says “The provision is effective for taxable years beginning after December 31, 2006, and before January 1, 2010”. This seems to exclude 2006.

Am I missing something?

Also, does anyone know where we can find a copy of the Public Law? It's not available on Thomas

[Bird]

This link may or may not be open to ASPPA non-members:

bill

Yes, I think they're off by a year.

[Peanut Butter Man]

A copy of the Act is available at:

http://waysandmeans.house.gov/media/pdf/ta...siontextpt1.pdf

[Appleby]

Thanks again

[Appleby]

For the exemption from the prohibited transaction, allowed for certain investment advice, it says

before the initial provision of investment advice, the fiduciary adviser must provide written notice (which may be in electronic form) containing various information to the recipient of the advice, including information relating to: (1) the role of any related party in the development of the investment advice program or the selection of investment options under the plan; (2) past performance and rates of return for each investment option offered under the plan; (3) any fees or other compensation to be received by the fiduciary adviser or affiliate; (4) any material affiliation or contractual relationship of the fiduciary adviser in the security or other property involved in the investment transaction (5) the manner and under what circumstances any participant or beneficiary information will be used or disclosed; (6) the types of services provided by the fiduciary adviser in connection with the provision of investment advice; (7) the adviser’s status as a fiduciary of the plan in connection with the provision of the advice; and (8) the ability of the recipient of the advice separately to arrange for the provision of advice by another adviser that could have no material affiliation with and receive no fees or other compensation in connection with the security or other property. This information must be maintained in accurate form and must be provided to the recipient of the investment advice, without charge, on an annual basis, on request, or in the case of any material change.

Does this notification applies only to those who chose the investment adviser option, or does it also apply to those who use the computer model . I think the latter, but the language seems to suggest otherwise

[Appleby]

http://www.irs.gov/pub/irs-drop/n-06-107.pdf

Transition relief and model notice for diversification rights