| The BenefitsLink Newsletter - Retirement Plans Edition |  |
April 27, 2001
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Fact Sheet on Committee-Approved Version of H.R. 10, the Portman-Cardin Bill
Excerpt: "Congressman Bill Thomas (R-CA), Chairman of the Committee on Ways and Means, today announced that on Wednesday, April 25, 2001, the Committee ordered favorably reported, as amended, H.R. 10, the 'Comprehensive Retirement Security and Pension Reform Act of 2001,' by a recorded vote of 35-6." (Ways and Means Committee, U.S. House of Representatives)
H.R. 10 Amendments to Chairman's Mark, Approved by Ways and Means Committee 4/26/2001 (PDF)
4 pages. Two amendments: an exclusion of nonresident aliens in applying minimum coverage requirements, and a waiver of tax on nondeductible contributions for domestic or similar workers. (Ways and Means Committee, U.S. House of Representatives)
401(k)s Transfer Risk To Employees
Excerpt: "The 401(k) plan is the best way to invest for retirement, hands down. Right? Well, yes. But there are some serious problems, too.... 401(k)s have become so popular that they will be the main source of retirement income for millions of Americans who may not be equipped to manage them." (Philadelphia Inquirer)
Form 5500 Schedule R Alert
Excerpt: "Recently, a number of practitioners have contacted us regarding DOL error letters they are receiving with respect to the Schedule R (Form 5500) and conflicting advice on how to correct the problem. Specifically, the DOL correspondence indicates an employer needs to address the minimum funding questions on the Schedule R even though the plan for which the employer is filing the Form 5500 is a 401(k) plan." (Sungard Corbel)
Another Question is Answered in the Stop, Look & Listen: Railroad Retirement Q&A Column
Our father worked for the old Chicago, Burlington & Quincy (CB&Q) for 32 years. He retired in 1986 and died in 1990. He was remarried and our stepmother already was receiving a private widow's pension from her first husband's plan. She told us that she didn't claim a widow's benefit from our father's account. She recently died. We're wondering what Railroad Retirement paid out following our father's death? (BenefitsLink.com)
Required Minimum Distribution (RMD) Model Amendment Deadline
Excerpt: "An IRS official informally has indicated an employer will have until the end of its remedial amendment period (including the extension for prototype and volume submitter plans) to adopt the RMD model amendment for the 2001 plan year." (Sungard Corbel)
House Panel Pushes More Retirement Savings
Excerpt: "The annual dollar limit on [federal government's] Thrift Savings Plan contributions could rise by $4,500 over the next five years, under a bill approved Wednesday by a House panel." (GovExec.com)
401(k) Investors Asking More Questions
Excerpt: "Already, with $1.7 trillion invested primarily in mutual funds, 401(k) investors have helped prop up the turbulent stock market because they invest regularly - from each paycheck - and for the long term, said Don Cassidy, senior research analyst for Lipper Inc., a Summit, N.J. firm that tracks the mutual fund industry. And, 'they are the last to sell,' he said." (Associated Press)
Testimony of JCT Staff Concerning Tax Code Simplification (PDF)
32 pages. Excerpt: "The Joint Committee staff recommends that the individual and corporate alternative minimum taxes should be eliminated.... [and] that the income limits on eligibility to make deductible IRA contributions, Roth IRA contributions, and conversions of traditional IRAs to Roth IRAs should be eliminated." (Joint Committee on Taxation)
The Contingent Workforce
Excerpt: "Management has embraced the concept of a contingent workforce largely because of perceived cost savings. In addition, a contingent workforce can offer flexibility in workforce size, decreases in contributions to employment taxes and employee benefit plans, and reductions in obligations and expenses related to labor law. Despite the potential benefits, however, the contingent workforce can create significant exposures through misclassification of employees." (The Internal Auditor)
Electronic Code of Federal Regulations
GPO is beta testing a new online version of the Code of Federal Regulations, which is updated on a daily basis. (Government Printing Office)
Newly Posted Press Releases
| Dot Coms Join to Deliver 401(k) Services to Financial Professionals (401kExchange.com) |
| VPA, Inc. Adds FMLA Services (VPA, Inc.) |
| TRUSTMARK® ENHANCES RECORDKEEPING SOFTWARE AND WEB SITE (TrustMark) |
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