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The BenefitsLink Newsletter -
Retirement Plans Edition
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October 12, 2001 - 12,199 subscribers
Today's sponsor: Glasser LegalWorks

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   This timely "how to" program focuses on how to run an effective,
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(Help BenefitsLink to provide this newsletter at no charge to you -- our sponsors pay our way. Remember to visit them periodically; we try to make sure their products and services will be of interest to you. Thanks! --Editor)

IRS Issues Q&As for New Saver's Credit, With Sample Notice to Employees
Excerpt: "In Announcement 2001-106 the IRS has described, in question and answer format, the new 'saver's credit,' an income tax credit that is available to eligible taxpayers who contribute to a retirement plan or IRA. The tax credit is for individuals with adjusted gross income that does not exceed $50,000, and is equal to a specified percentage of employee contributions made to an employer-sponsored retirement plan or of contributions to an IRA for tax years beginning after 2001." (Internal Revenue Service)

Analysis : IRS Issues Sample Amendments for New Tax Law
Excerpt: "The IRS has recently released guidance and sample amendments for implementing the changes in the Economic Growth and Tax Relief Reconciliation Act (EGTRRA). IRS Notice 2001-56 shows sponsors of 401(k) and other qualified plans how to comply with the new law's effective dates, and Notice 2001-57 provides sample amendments to implement new features and limits.' (Thompson Publishing Group)

Highlights of EGTRRA Provisions Affecting Retirement Plans (PDF)
Excerpt: "Beginning in 2002, qualified plans must make a reason-able, good faith effort to comply with the expanded Code section 402(f) notice requirements.) ... [I]n most cases the sponsor of a top-heavy plan will want to amend the plan's top-heavy provision no later than May 31, 2002." (von Briesen, Purtell & Roper, s.c.)

Retirement Assets of State and Local Government Employees at Record High, Census Bureau Reports
Excerpt: "Investment holdings of state and local government employee retirement systems reached a record high of $2.2 trillion in 2000, up $263 billion over 1999, the Commerce Department's Census Bureau reported." (U.S. Census Bureau)

Monday is Deadline for Recharacterizing 2000 IRA
Excerpt: "Retirement investors have until Monday to undo some of the decisions they made last year and save money in the process. By law, people who converted their traditional individual retirement account to a Roth IRA in 2000, or who made contributions to a Roth, have until Oct. 15 to change their minds." (Los Angeles Times)

Deadline for Amending Retirement Plans is Fast Approaching: Are You Ready? (PDF)
Excerpt: "For [individually designed] plans that use a calendar year as their plan year, the deadline for adopting GUST amendments is December 31, 2001." (von Briesen, Purtell & Roper, s.c.)

USERRA Guide for Retirement Plan Sponsors
Excerpt: "[This] is a guide to employee retirement plan rights provided under the Act, combined with suggestions and considerations about retirement planning before, during and after the commencement of military service. (There are other benefit protections included in USERRA such as healthcare and life insurance coverage, vacation time, compensation, etc. Please consult your provider for those details.)" (Invesmart)

USERRA Guide for Retirement Plan Participants in the Military
Excerpt: "This simple guide will help you in your transition from civilian working life to active military duty. It includes: a quick reference checklist of things you should consider or do before you go; your options while you're in service and what to expect upon your return. Furthermore, we have included an explanation of USERRA provisions that protect your retirement plan rights as a uniformed military person." (Invesmart)

(Following items are in both editions of the BenefitsLink Newsletter)


Alert: U.S. Compensation and Benefits News Briefs (September 17/October 1 Edition)
Articles include: SIFL rates and terminal charge for valuation of personal flights on employer aircraft; investment choices under qualified tuition plans; Guidance on EGTRRA effective dates for qualified plans and sample plan amendments; court holds that only non-vested participants count in partial plan termination analysis; proposed legislation on IRA investments and healthcare exclusion for domestic partners. (Andersen)




Newly Posted or Renewed Job Openings (Post Yours!)
Retirement Service Specialists for Constantin Control Associates
in NJ, NY
Implementation Manager - DB for Mellon Employee Benefit Solutions
in NJ
Plan Administrator for Ceridian
in CO
Implementation Specialist - DB for Mellon Employee Benefit Solutions
in NJ
Director of 401K Administration for HR Logic
in MA

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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.