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The BenefitsLink Newsletter -
Retirement Plans Edition
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April 18, 2002 - 11,721 subscribers
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Analysis: IRS Issues Final Regulations Governing Minimum Required Distributions (PDF)
4 pages. Excerpt: "As required by the EGTRRA legislation in 2001, the mortality tables used for determining the applicable distribution period have been updated in the final regulations, producing longer applicable distribution periods and, hence, smaller MRDs. Other rules generally intended to simplify the calculation of the MRD were also added, including ..." (Sutherland, Asbill & Brennan LLP)

Overview: Reporting Rules For IRAs Relating to Minimum Distribution Requirements, Starting In 2003
Excerpt: "As of January 31 of each year, an IRA trustee, custodian or issuer must provide a statement to the IRA owner regarding the minimum required distribution for such year. For example, the statement for 2003 is due by January 31, 2003." (TRI Pension Services)

Overview: Final Regs Prescribe Minimum Distributions Required for 2003 and Subsequent Years
Excerpt: "[T]he final regulations also may be used to determine minimum distributions required for 2002. Alternatively, the 1987 Proposed Regulations or the 2001 Proposed Regulations may be used for calculating 2002 minimum distributions.... The date for determining the designated beneficiary is accelerated from December 31 of the calendar year which follows the year of the participant's death (or surviving spouse's death, if applicable) to September 30 of such calendar year." (TRI Pension Services)

California Passes Legislation to Provide Some EGTTRA Conformity for Public Employees
Excerpt: "This is not the big tax-conformity measure Californians have been anxiously awaiting since the federal Economic Growth and Tax Relief Reconciliation Act was signed into law last summer. But the Legislature made some headway on that one, too." (San Francisco Chronicle)

Excerpts from new edition of Selling to an ESOP
The NCEO presents excerpts from the new edition of Selling to an ESOP, a 366 pp. book for closely held companies and their advisors. Written by leading ESOP authorities, the book has been updated for 2002 and covers both C and S corporations. (National Center for Employee Ownership)

Another Question is Answered in the Who's the Employer Q&A Column
Let's change the facts just a bit on Q&A 158. Corporation X owns 49% of Corporation Y. Y's ESOP owns the remaining 51% of Y. Oscar owns 100% of X and is a participant in the ESOP. 65% of the Y stock held by the ESOP is allocated to Oscar's account. Are X and Y now a controlled group and for what purposes? (BenefitsLink.com)

IRS Web Posting Warns of Changes to 2002 Forms 1099-R and 5498 Instructions
News item dated 4/18/02. Excerpt: "In a web posting on April 5, 2002, the IRS warned that instructions for the 2002 Forms 1099-R (Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.) and Form 5498 (IRA Contribution Information), were revised and re-posted on February 25, 2002.... Individuals who downloaded the instructions before February 25 should download the corrected instructions from the IRS website." (CCH News & Information Library)

Good Times Turn Lean for Some Corporate Pension Funds
Excerpt: "[T]he people who funnel pension money into stocks and bonds control a staggering $3.6 trillion.... Companies are scaling back their estimates on what the market will return. Hopes for 12 percent returns have been scaled back to less than 10 percent." (The Indianapolis Star)

Chile Could Hold Lessons For U.S. Social Security Privatization Debate
Excerpt: "Chile privatized its national pension system 21 years ago, and supporters say it offers a model for the United States." (St. Petersburg [Fla.] Times)

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

Joint Committee Describes Present Law and Background Relating to Executive Compensation (PDF)
49 pages; JCX-29-02 was published April 17, 2002. Describes ERISA and tax aspects of nonqualified deferred compensation, split dollar insurance arrangements, corporate-owned life insurance and stock options. (Joint Committee on Taxation)

Newly Posted or Renewed Job Openings - Post a Help Wanted Ad
Pension Fund Analyst for Levi, Ray, & Shoup
in IL
Defined Contribution Administrator for Union Bank of California
in CA

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Copyright 2002 BenefitsLink.com, Inc., but you may freely distribute this email newsletter in whole. This newsletter is edited by David Rhett Baker, J.D.