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Senior Plan Administrator
American National Insurance Co.
in TX

401(k) Recordkeeper
401(k) Firm
in CA

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[Official Guidance]

Text of Draft 2017 IRS Form 5500-EZ (PDF)
Revised Sept. 8, 2017. "This form is required to be filed under section 6058(a) of the Internal Revenue Code. Certain foreign retirement plans are also required to file this form."
Internal Revenue Service [IRS]


P&I DC West Conference | San Diego | Oct 8 - 10

Sponsored by Pensions & Investments

Join leading executives who manage 401(k), 403(b), 457 and TSP plans at DC West. You'll learn how other plan sponsors analyze, develop, implement and measure programs for their participants, so you can improve your own plan.

[Official Guidance]

Text of IRS Form 14568: Model VCP Compliance Statement (PDF)
Rev. Sept. 2017. Also released:

  • Form 14568-B, Schedule 2: Other Nonamender Failures and Failure to Adopt a 403(b) Plan Timely
  • Form 14568-C, Schedule 3: SEPs and SARSEPs
  • Form 14568-D, Schedule 4: SIMPLE IRAs
  • Form 14568-E, Schedule 5: Plan Loan Failures (Qualified Plans and 403(b) Plans)
  • Form 14568-F, Schedule 6: Employer Eligibility Failure (401(k) and 403(b) Plans only)
  • Form 14568-G, Schedule 7: Failure to Distribute Elective Deferrals in Excess of the 402(g) Limit
  • Form 14568-H, Schedule 8: Failure to Pay Required Minimum Distributions Timely
  • Form 14568-I, Schedule 9: Limited Safe Harbor Correction by Plan Amendment
Internal Revenue Service [IRS]

[Official Guidance]

Text of Federal Retirement Thrift Investment Board Proposed Regs: Blended Retirement System
"The National Defense Authorization Act for Fiscal Year 2016 (NDAA) ... changed the uniformed services' retirement plan from one that relied primarily on a cliff-vested defined benefit to one that blends a reduced defined benefit with enhanced TSP benefits, continuation pay, and lump-sum options. The new retirement system is known as the Blended Retirement System (BRS). This proposed rule implements the enhanced TSP benefits provided by the NDAA."
Federal Retirement Thrift Investment Board [FTIB]

[Official Guidance]

Text of PBGC Final Regs: Bylaws
"PBGC's Board of Directors (the Secretaries of Labor, the Treasury, and Commerce) voted to amend the bylaws at a meeting of the Board of Directors on September 7, 2017. This rule replaces the old bylaws with the new bylaws in PBGC's regulations."
Pension Benefit Guaranty Corporation [PBGC]

[Official Guidance]

Text of PBGC Disaster Relief Announcement 17-10 in Response to Hurricane Irma in U.S. Virgin Islands
"This Disaster Relief Announcement provides relief relating to PBGC deadlines ... [to] any person ... located in the disaster area for which the [IRS] has provided relief in VI-2017-01 ... The relief generally extends from September 6, 2017 through January 31, 2018. The disaster area consists of islands of St. John and St. Thomas."
Pension Benefit Guaranty Corporation [PBGC]


P&I DC West Conference | San Diego | Oct 8 - 10

Sponsored by Pensions & Investments

Join leading executives who manage 401(k), 403(b), 457 and TSP plans at DC West. You'll learn how other plan sponsors analyze, develop, implement and measure programs for their participants, so you can improve your own plan.

Mid-Year 401(k) Testing -- How to 'Use' and 'Misuse' Projected 401(k) Test Results
"If the sole purpose for running a mid-year test is to use it as a tool to limit your HCEs so that they can scale back their contributions, ... think again. The only thing that this accomplishes is having these employees fail to maximize their contributions. If you don't fail or generate refunds, you're simply not maximizing benefits and you will almost always shortchange the HCEs and they will leave money on the table that could have been in the plan."
Pentegra Retirement Services

How to Optimize Your Small Business Retirement Plan
"[1] Stay up to date on compliance ... [2] Increase plan effectiveness by lowering fees.... [3] Improve the monitoring of investment options ... [4] Drive better employee participation and engagement ... [5] Make your plan even more tax efficient."

Voluntary Pensions in Emerging Markets
"In pay-as-you-go pension systems, governments are being forced to make reductions in future retirement benefits due to declining birthrates coupled with rising life expectancy rates. Funded state pension systems ... are seeing that current contribution rates are too low to generate adequate income replacement.... [R]apid development and rapid demographic change are putting increasing pressure on alternative sources of retirement income ... Without reform, a large share of the workforce in most emerging markets will reach old age over the next few decades without adequate pensions, personal savings, or children to support them."
Principal Financial Group

Fiduciary Rule's Opponents Seek Elusive Knockout Blow
"Fresh off a victory in securing an 18-month delay for the fiduciary rule's remaining provisions, the regulation's opponents are redoubling efforts to nix it for good.... Rescinding the rule in its entirety, however, has proven difficult in part because of the slowness of the rule-making process and the support the rule enjoys among consumer advocates as well as many within the industry."
Financial Planning

CalPERS Said to Mull Outsourcing Its Private-Equity Investments
"CalPERS, the largest pension fund in the U.S., may ask BlackRock to manage all or part of its private-equity holdings, as it seeks to control fees ... CalPERS in April began reviewing how it invests in private equity, looking to cut exposure to the asset class because of rising fees.... The California pension fund has about $26 billion in private-equity assets that BlackRock could help manage if the preliminary talks lead to an outsourcing arrangement."
Institutional Investor

The State of Consumer Retirement Advice (PDF)
"Respondents reported preferences for receiving advice through email and 1:1 sessions. Least preferred channels included snail mail and annual info sessions.... The majority of respondents (53%) report receiving absolutely no advice on their retirement investments.... Less than half of respondents correctly identified the definition of a fiduciary."
Betterment For Business

Benefits in General

[Official Guidance]

Text of IRS Disaster Relief Notice VI-2017-01, for Victims of Hurricane Irma in U.S. Virgin Islands
"Victims of Hurricane Irma that took place beginning on Sept. 6, 2017 in parts of U.S. Virgin Islands may qualify for tax relief from the [IRS].... Individuals who reside or have a business in the Islands of St. John and St. Thomas may qualify for tax relief.... [C]ertain deadlines falling on or after Sept. 6, 2017 and before Jan. 31, 2018, are granted additional time to file through Jan. 31, 2018."
Internal Revenue Service [IRS]

on the BenefitsLink Message Boards

Form 5330 Excise Tax for Corrective Distributions: Before or After Adjustment for Gains or Losses?
"What about was the calculation of the excise tax for failing to correct ADP/ACP failure prior to the 2-1/2 month deadline -- The ERISA Outline Book says that the 10% tax is calculated on the excess deferral or excess aggregate contributions prior to the gains-or-losses adjustment, but the 5500 Preparer's Manual says the tax is calculated after the adjustment."
BenefitsLink Message Boards

C Corp's Contribution Deadline: September 15, or Now October 15?
"The IRS modified tax return deadlines for 2016. We are questioning whether the deadline for making a contribution for a calendar year plan is still September 15, or (as the Form 7004 instructions suggest) has changed to October 15."
BenefitsLink Message Boards

Attribute One Spouse's Hours of Service to the Other Spouse?
"If a doctor (an S-corp) has her husband working for her and he appears each year on the census with under 1,000 hours, can we deem him, as her spouse, to have worked over 1,000 hours. This is what our actuary is saying we can do."
BenefitsLink Message Boards

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David Rhett Baker, J.D., Editor and Publisher
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BenefitsLink Retirement Plans Newsletter, ISSN no. 1536-9587. Copyright 2017, Inc. All materials contained in this newsletter are protected by United States copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of, Inc., or in the case of third party materials, the owner of those materials. You may not alter or remove any trademark, copyright or other notices from copies of the content.

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