| The BenefitsLink Newsletter - Retirement Plans Edition |  |
November 9, 2001 - 12,418 subscribers
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Analysis: Guidance on Catch-Up Contributions
Excerpt: "Highlights of the proposed regulations and related issues follow ..." (Kilpatrick Stockton LLP)
IRS News Release Reminds Taxpayers to Plan Now to Take Advantage of Saver's Tax Credit in 2002
Excerpt: "Qualifying employees should make plans now to benefit from the new Saver's Credit next year, the Internal Revenue Service advises. This tax credit, which will be available only from 2002 through 2006, will help offset the cost of the first $2,000 contributed to IRAs, 401(k)s and certain other retirement plans." (Internal Revenue Service)
Overview: "Saver's Credit" -- a New Income Tax Credit For Retirement Plan or IRA Contributions
EGTRRA added an income tax credit for eligible taxpayers who contribute to a retirement plan or IRA. The 'saver's credit' is an income tax credit equal to a specific percentage, up to $2,000 per year, of employee salary reduction contributions made to a 401(k) plan, a 403(b) annuity, a 457 plan, a SIMPLE IRA, or a SEP. It is also available for voluntary after-tax employee contributions to a tax-qualified retirement plan or a 403(b) annuity. (Sanders, Schnabel & Brandenburg, P.C.)
Another Question is Answered in the Stop, Look & Listen: Railroad Retirement Q&A Column
I left the railroad in 1998 with 32 years of rail credits. I will be 60 in March 2002. I had figured what my Tier 2 will be, using the Tier 2 formula (highest 5 years of earnings multiplied by .07% multiplied by the number of years of service). It's quite a bit more than the estimate I received from the Railroad Retirement Board. What would explain the difference? (BenefitsLink.com)
PBGC's Pension Search Program Finds 10,000 Missing Workers Owed $34 Million In Benefits
The Pension Benefit Guaranty Corporation has announced that, over the past five years, its Pension Search Program has located more than 10,000 individuals owed about $34 million from terminated defined benefit plans. There still are some 13,300 individuals who can claim $43 million now held for them by the PBGC. Those individuals are listed in the PBGC's Pension Search Directory on the agency's Web site at http://www.pbgc.gov/search. (Spencernet)
Decline in Asset Values Causes County to Increase Required Contribution by Employees
Excerpt: "The county retirement board voted unanimously yesterday to increase employee contributions to the pension fund from 3.8 percent of gross pay to 5 percent." (The [Pittsburgh] Post-Gazette)
Overview: Retirement Security Advice Act of 2001 Reported Out of Committee
Excerpt: "The exemption would be available only to 'fiduciary advisors.' A fiduciary advisor is defined as a registered investment advisor, bank, insurance company, or registered broker dealer.... Prior to providing advice, a fiduciary advisor would be required to disclose the following information: (1) all fees and potential conflicts of interest, (2) any affiliation with the investment options in the plan ..." (U.S. House of Representatives, Committee on Ways and Means)
Overview: Private Pension Plans in Great Britain
Excerpt: "In this article, we take a broad look at the range of employer schemes available and the essential features that distinguish them from personal pensions. Thereafter we undertake a detailed examination of occupational scheme benefits and opportunities for enhancement. Finally, we examine different kinds of occupational schemes, including 'unapproved' varieties for those who have maximized their benefits under approved arrangements." (SpencerStuart.com)
IRS Allows Redesignation of Estimated Income Tax Payments In Wake of Terrorist Attacks
In Announcement 2001-112, the Internal Revenue Service states that it will allow taxpayers who have made estimated income tax payments for their current taxable year to redesignate those payments as employment and withholding taxes. (Spencernet)
Newly Posted or Renewed Job Openings (Post Yours!)
| Defined Contribution Plan Administrator | for Actuarial Firm In Las Vegas in NV |
| Benefits Manager - North America Operations - IBL/580hs | for Acterna in MD |
| 401(k) SALES PROFESSIONAL | for MBM Advisors Inc. in TX |
Newly Posted Conferences (Post Yours!)
| Southern Employee Benefits Conference Fly-In Meeting | in GA on April 25, 2002 presented by Southern Employee Benefits Conference |
| 48th Annual Employee Benefits Conference | in on September 20, 2002 presented by International Foundation of Employee Benefit Plans |
| Benefit Communication and Technology Institute | in FL on March 10, 2002 presented by International Foundation of Employee Benefit Plans |
| Los Angeles Benefits Conference | in CA on January 31, 2002 presented by Internal Revenue Service and American Society of Pension Actuaries |
| Fraud Prevention Institute | in NV on November 13, 2002 presented by International Foundation of Employee Benefit Plans |
Newly Posted Press Releases
| NADART Launches New Web Site (National Automobile Dealers and Associates Retirement Trust) |
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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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