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Bad Tips for 401(k)s?

"Normally, making 401(k) deferrals on a pre-tax basis provides a tax advantage to an employee ... However, in the case of a tipped employee, it may actually create a tax disadvantage, because it converts otherwise tax-free income into taxable income.... Employee education is obviously going to be critical.... [U]nless there is a very generous match, it may be hard to get low-paid tipped workers to see a reason to make contributions that do not produce an immediate tax benefit. Employers may wish to consider making safe harbor nonelective contributions to the plan."

Regulatory Information from the 2005 NCTR Convention -- Handouts from Three Pension Tax Experts (PDF)

54 pages. Excerpt: [The handouts include information from:] Mary Beth Braitman, Ice Miller, on the proposed Section 415 rules; Carol V. Calhoun, Calhoun Law Group, P.C., on the automatic rollover provisions and phased retirement; and, Evelyn Small Traub, Troutman Sanders LLP, on the proposed 403(b) regulations and Hurricane Katrina and Rita tax relief.

DROP/Phased Retirement Arrangements, 457 Matches, and Other Current Trends in Governmental Plans

Another new outline is available at Carol V. Calhoun's employee benefits site discusses deferred retirement option plans (DROPs) and employer matches of 457 plan contributions.

New IRS Correction Rules for Retirement Plans

32 presentation slides. Topics: [1] General principles. [2] Erroneous exclusion of employees: correction of pre-tax contributions, after-tax contributions, and matching contributions; earnings calculations. [3] Incorrect calculation of contributions: correction of pre-tax contributions, Roth contributions, after-tax contributions other than Roth contributions, matching contributions and nonelective contributions; earnings calculations.

403(b) and 457(b) Plan Compliance Challenges: Avoiding Pitfalls in Plan Design and Administration

47-slide presentation by attorney Carol V. Calhoun. Topics include "Why would a public school have a 403(b) plan instead of a 401(k) or 457(b) Plan?", the universal availability requirement for 403(b) plans, and the section 4960 excise tax on annual remuneration in excess of $1 million for covered employees.