Retirement Plans Edition
January 17, 2001
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Proposed Regulations on Minimum Required Distributions Published in Federal Register (PDF)
27 pages. This link is to a local copy of the file stored on the BenefitsLink server; should be easier for you to download from us than from the often-busy official Government Printing Office server. (Internal Revenue Service)
Retirement Account Distributions Made Simpler
Excerpt: "Rules governing distributions from retirement accounts like IRAs and 401(k)s will be simpler and amounts required to be withdrawn could be reduced under regulations announced by the Internal Revenue Service. The rules will substitute a single life expectancy table for a complex series of tables used to determine the amounts to be distributed from a retirement account. The old rules dating to 1987 were frequent targets of complaints, said IRS employee plans manager Dick Wickersham." (New York Times; free registration required)
Life Simplified and Sweetened-- Sweeping Changes for IRAs and Retirement Plans
Excerpt: "The concepts of recalculation and term certain and hybrid with respect to calculating life expectancy are now only of historical interest. With only one exception, the minimum required distribution is calculated based on the joint life expectancy factor of the IRA owner, starting at age 70, and the life expectancy of someone who will be considered to be ten years younger than the IRA owner. That life expectancy factor will decrease as the IRA owner ages." (James Lange, CPA, on RothIRA-Advisor.com)
Brief Overview of 2001 Proposed Regulations on Required Minimum Distributions
Excerpt: "The changes affect the RMD computation during the employee's (or IRA owner's) life and after death, and also change the time period for determining whether the employee has a designated beneficiary for purposes of calculating the RMD." (Corbel)
Proposed Regulations Allow QJSA Notice to Be Provided After Annuity Starting Date (HTML)
Excerpt: "This document contains proposed regulations relating to the special rule added by the Small Business Job Protection Act of 1996 which permits the required written explanations of certain annuity benefits to be provided by qualified retirement plans to plan participants after the annuity starting date. These regulations affect administrators of, participants in, and beneficiaries of qualified retirement plans." (Internal Revenue Service)
Proposed Regulations Allow QJSA Notice to Be Provided After Annuity Starting Date (PDF)
Link to PDF file on BenefitsLink's server. Excerpt: "This document contains proposed regulations relating to the special rule added by the Small Business Job Protection Act of 1996 which permits the required written explanations of certain annuity benefits to be provided by qualified retirement plans to plan participants after the annuity starting date. These regulations affect administrators of, participants in, and beneficiaries of qualified retirement plans." (Internal Revenue Service)
One Win, Two Losses on Public Pension Issues in the 106th Congress
Excerpt: "We got the House and Senate to pass the pension reform legislation numerous times, but they never passed it at the same time, so it never reached the President's desk! The bankruptcy bill, on the other hand, did pass both chambers, but was pocket-vetoed by the President. The only positive news relates to the possible restriction on Social Security number usage." (Cindie Moore, Esq. for the National Council on Teacher Retirement)
Proposed IRS Regs on Notice to Interested Parties Required for Determination Letter Filings (HTML)
Excerpt: "The proposed regulations do not change the information that the notice must contain or the time period in which the notice must be given.... The proposed regulations would set forth new standards for providing the notice to interested parties. These new standards permit greater flexibility in the manner in which the notice may be provided." (Internal Revenue Service)
Proposed IRS Regs on Notice to Interested Parties Required for Determination Letter Filings (PDF)
3 pages. Excerpt: "Before the IRS can issue an advance determination regarding the qualification of a retirement plan, a plan sponsor must provide evidence that it has notified all persons who qualify as interested parties that an application for an advance determination will be filed. These proposed regulations set forth standards by which a plan sponsor may satisfy the notice to interested parties requirement." (Internal Revenue Service)
Analysis: Additional Guidance On GUST Amendments for Master & Prototype and Volume Submitter Plans
Excerpt: "Sponsors of M&P and volume submitter plans should have already amended and submitted their plans. Among other things, this Announcement provides important guidance for employers who find out that the M&P or volume submitter plans upon which they rely were not timely submitted." (EBIA Weekly)
IRS Again Finds That Same Desk Rule Does Not Prevent Distributions After Certain Asset Sales
Excerpt: "This ruling follows the lead of Revenue Ruling 2000-27 in limiting the application of the 'same desk' rule after certain asset sales. (The IRS has not similarly limited its past application of the same desk rule to distributions in response to stock deals and outsourcing situations.)" (EBIA Weekly)
| Sr. Benefit Administration Specialist-Multiple Locations | for Towers Perrin in PA, VA |
| 401(k) / Retirement Plan Administrator | for Howard Simon & Associates, Inc. in IL |
| Communications Consultant | for Persumma Financial, 401(K) Innovative Web Based Provider of Retirement Services in MA |
| Senior Communications Consultant | for Leading Retirement Benefits Outsourcing Company in GA |
| Retirement Plan Analyst - Temporary (16-18 months) | for HR Fundamentals Inc. in NJ |
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