DOL's Short Form 5500: The Form 5500-SF for Certain Small Retirement and Welfare Plans
Excerpt: "The new form should simplify the reporting requirements for eligible plans because it is only two pages long and does not require any schedules unless the plan is a defined benefit plan or a money purchase plan amortizing a minimum funding waiver. In the following FAQs, we address questions and issues relating to the Form 5500-SF."
Changes to the Roth IRA Conversion Rules (PDF)
2 pages. Excerpt: "For those who decide to convert, evaluate how much to convert. Taxpayers can convert any portion of a traditional IRA or eligible 401(k) distribution. Those who cannot pay the income tax on a full conversion may want to convert only a portion of their traditional IRA or 401(k) distribution. Taxpayers may also want to leave some funds in a tax-deferred 401(k) or traditional IRA to maintain tax diversification in their retirement accounts."
(Porter Wright Morris & Arthur LLP)
Incorrect Fax Number on Certain IRS Forms Sent in January About a Delinquent Form 5500 or Form 5500-EZ
Excerpt: "BenefitsLink has learned that certain IRS forms sent to plan sponsors about a non-filed Form 5500 or 5500-EZ contain an incorrect fax number. Many forms CP 403 (First Delinquency Notice) and CP 406 (Final Notice) sent in January 2010 show a fax number of 801-620-6117 to which responses can be sent, but the correct fax numbers are 801-620-7116 or (801) 620-6900. Forms sent after January 29 should contain the correct fax number, however, according to an IRS source."
Senate Majority Leader Unveils Jobs Amendment Without Pension Funding Relief Provisions
Excerpt: "[Senate] Majority Leader Harry Reid (D-NV) unveiled a significantly scaled-back jobs bill compared to the legislation released earlier by Senate Finance Committee Chairman Max Baucus (D-MT) and Ranking Minority Member Charles Grassley (R-IA). . . . The Reid amendment does not contain the defined benefit plan funding relief provisions or extensions of other provisions that expire on February 28, including unemployment insurance, COBRA premium subsidy benefits, or the Medicare physician payment fix."
(The ERISA Industry Committee)
Six Ways Employers Will Change 401(k)s in 2010
Excerpt: "Employers plan to get more involved in their 401(k) plans in 2010. The trend of employers automatically signing their workers up for retirement accounts is expected to continue this year. Many companies will also attempt to steer their employees into more appropriate investments, according to a new survey by Hewitt Associates, a human resources consulting firm."
(U.S. News & World Report)
Emergency Withdrawals from Retirement Accounts As Taxable Income
Excerpt: "Aside from homeowners, people who had to withdraw money prematurely from their retirement accounts because of a job loss or reduced work hours also face extra taxes. Holders of traditional I.R.A.'s and I.R.A. rollover accounts must pay 10 percent of any amount withdrawn before they reach 59 1/2 as a penalty, according to Michael H. Iacolucci, a financial planner in Ballston Spa, N.Y. That is on top of the regular tax on money taken out, which must be paid regardless of one's age."
(The New York Times; free registration required)
Workers' Response to the Market Crash: Save More, Work More?
Excerpt: "The stock market crash of 2008 significantly dimmed the retirement prospects of workers approaching retirement. . . . The rational response to a sharp decline in retirement wealth is to spread the pain - save more, work longer, and consume less in retirement - to the point where the incremental pain from each response is the same. The extent to which workers are absorbing a portion of the loss by saving more and working longer is thus critical for assessing their retirement prospects."
(Center for Retirement Research at Boston College)
Podcast: Fiduciary Leadership Uses 'Leadership Behaviors' to Guide the Fiduciary Process
Excerpt: "The leadership behaviors that [Don} Trone speaks of take center stage as the backbone of a fiduciary process for 401(k) and plan sponsors and retirement advisors. With independent fiduciary Matthew Hutcheson, Trone has written the book '401(k) Ethos,' to help guide retirement advisors and corporate 401(k) fiduciaries. He talked with Wealth Manager about Strategic Ethos and the book on February 8th."
Executive Compensation; Benefits in General
When Employee Benefits are Subject to ERISA and What that Means
Excerpt: "Although some of ERISA's requirements may add work that would not be necessary otherwise, ERISA-coverage also provides some benefits for an employer. ERISA preempts state law with respect to benefits provided under an ERISA-covered plan. This preemption is advantageous for you because state laws generally provide more expansive remedies than the remedies available under ERISA. Therefore, you can use ERISA to protect yourself from exposure to the liabilities associated with state court remedies."
(Poyner Spruill LLP)
Amending Nonqualified Deferred Compensation Plans Without Penalty (PDF)
2 pages. Excerpt: "To take advantage of the relief provided in the Notice, employers should take the following actions: A. Review all potential nonqualified deferred compensation arrangements promptly to determine whether they are subject to Section 409A. B. Determine whether applicable arrangements are compliant with Section 409A or need to be amended. C. Amend any non-compliant arrangements by December 31, 2010."
(Porter Wright Morris & Arthur LLP)
Webcasts and Conferences
Newly Posted Employee Benefits Jobs
Subscribe to the BenefitsLink Health & Welfare Plans Newsletter, Too!
Sign-up form is at https://benefitslink.com/newsletter (free).
This email has been published by:
1298 Minnesota Avenue, Suite H
Winter Park FL 32789
Fax: (407) 644-2151
Jeanette Hull, News Editor
David Rhett Baker, J.D., Editor and Publisher
Copyright 2010 BenefitsLink.com, Inc.; except that you can
forward this email in full (including this boilerplate part) or
otherwise reprint this email in full (including this boilerplate
part) without obtaining our permission.
Anyone can receive these emails; just have them sign up
at this web page: https://benefitslink.com/newsletter/
Other useful links: