| The BenefitsLink Newsletter - Retirement Plans Edition |  |
August 14, 2001 - 12,875 subscribers
Today's sponsor: Actuarial Systems Corporation (click)
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IRS Finalizes Regulation on Classification of Benefit Trusts as Domestic Trusts
The IRS has finalized without change regulations issued last year in proposed form, which add group trusts (under Revenue Ruling 81-100) and certain other investment trusts to the safe-harbor definition of "domestic trust" under Code section 7701, despite the involvement of one or more foreign investors. (Internal Revenue Service)
Analysis: IRS Issues Final Regulations On Classification of Benefit Trusts
The Internal Revenue Service has issued final regulations that amend the existing rules defining certain domestic or foreign employee benefit and investment trusts for federal tax purposes. The Small Business Job Protection Act of 1996 and the Taxpayer Relief Act of 1997 amended IRC Sec. 7701(a) by establishing objective criteria for determining whether a trust is a 'domestic trust' for federal tax purposes. (Spencernet)
Almost Half of Small Business Owners Want Pre-Existing Relationship When Choosing Advisor for 401k
Press release. Excerpt: "The study also found that while 46 percent of small business owners consider a pre-existing relationship very or extremely important to consider when selecting an advisor, only 34 percent of other successful professionals agree with this statement." (PR Newswire via Excite News)
Federal Thrift Savings Plan Daily Valuation Upgrade Might Have to Start Over
Excerpt: "Nearly four years of work to modernize the Thrift Savings Plan's computer system may have to be scrapped, TSP Executive Director Roger Mehle said Monday. The TSP board is trying to regroup and push forward with an ambitious schedule after last month's firing of American Management Systems. The Fairfax, Va.-based contractor was hired in 1997 to modernize TSP's 15-year old record-keeping system." (GovExec.com)
DOL Sues New York Investment Company, Owner Over Excessive Stock Trades With Plan Assets
The Department of Labor has filed a lawsuit against Rochester, N.Y.-based Emerald Capital Management and its president for imprudently making excessive securities trades with the assets of numerous employee benefit plan clients. The suit was filed in the U.S. District Court for the Western District of New York, as Chao v. Emerald Capital Management, Ltd. (Civil Action No. 01CV 6356T(F)). (Spencernet)
Plan's Failure to Define Employee Doesn't Prevent Administrator from Interpreting Plan Document
Hensley v. Northwest Permanente P.C. Retirement Plan and Trust (9th Cir. 2001). Excerpt: "[EBIA Comment:] Check your plans to make sure they clearly define what workers are eligible for benefits. Although the Ninth Circuit in this case gave the plan administrator discretion to apply its own reasonable definition, plans should not have to rely on the administrator's discretion to define such an important plan term." (EBIA Weekly)
ASPA Files Supplemental Comments Regarding Proposed Regulations Under Code Section 401(a)(9)
Excerpt: "We recommend that the final regulations include the following two rules regarding TEFRA §242(b)(2) elections ... [and the] regulations should clarify in Q&A-3 of §1.401(a)(4)-6 that the employee can start a single life annuity that includes a term certain based on his single life expectancy, in the event that he does not have a designated beneficiary for minimum distribution purposes as of the annuity starting date." (American Society of Pension Actuaries, Government Affairs Committee)
Converting Traditional IRAs to Roth IRAs, Now That the Stock Market Is Down
Excerpt: "Whether it makes sense to roll traditional lRA funds into a Roth IRA (and trigger the resulting tax liability) depends on such factors as how long the taxpayer intends to leave the funds in the Roth IRA, what the taxpayer's tax rate is now and will be when withdrawals are taken, and whether the taxpayer will have to use the funds from the IRA to pay the tax due at conversion." (Practitioners Publishing Company)
For Gen X, Saving Early May Be Vital
Excerpt: "People tagged Generation X - those age 21 to 34 - are more likely to be spending for today than thinking ahead to tomorrow's retirement, a recent survey reports. This finding is especially troubling because building a nest egg is critical for this age group, with traditional pensions dwindling." (The [Philadelphia] Inquirer)
American Benefits Council Urges Social Security Commission to Keep Private Employers in Mind (PDF)
18 pages, submitted August 14, 2001. Excerpt: "Currently, private, employment-based retirement plans presume the existence of a healthy Social Security system structured as it is today. Changes and reforms to Social Security will have myriad effects on these plans and on our nation's overall retirement policy. The [American Benefits] Council feels strongly that such effects must be carefully weighed and that caution must be taken to avoid disrupting employment-based retirement plans." (American Benefits Council)
Newly Posted or Renewed Job Openings (Post Yours!)
| Plan Administrator | for Benefit Resources, Inc. in CA |
| Employer Contribution Accounts Department Manager | for Taft-Hartley Multi-employer Pension Benefit Fund in CA |
| 401(k) Pension Administrator | for Kibble & Prentice, Inc. in WA |
| 401(k) Administrator | for Polycomp Administrative Services, Inc. in Woodland Hills in CA |
| Defined Contribution Plan Administrator | for CNA Trust in CA |
| Employee Benefits Trust Relationship Manager/Team Leader | for SunTrust Banks, Inc. in TN |
| ERISA Paralegal | for ADP in NJ |
| Senior Accounts Representative | for The Motley Fool, Inc. in DC |
Newly Posted Conferences (Post Yours!)
| 2002 Summer Academy | in CA on July 25, 2002 presented by ASPA |
Newly Posted Press Releases
| BenefitsAlert.Com Releases Free Report: "Benefits Record-Keeping Requirements" (Alexander Hamilton Institute) |
| Scudder Retirement Services Chooses SunGard to Process Pension Plan Documents via the Internet (SunGard Corbel) |
| Boston International Private Client Group/The Investment Center Offers Full Employee Access to All Retirement Investments, Online Asset Allocation, Multiple Investment Choices, Multiple Account Viewing for All Retirement, Pension and Trust Plans (Boston International Private Client Group/The Investment Center, Inc.) |
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Copyright 2001 BenefitsLink.com, Inc., but you may freely distribute this email newsletter in whole. This newsletter is edited by David Rhett Baker, J.D.
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