Prime Trust Advisors

BenefitsLink
[Guidance Overview] Proposed Regs on Consequences of Failing to Defer Receipt of Qualified Retirement Plan Distributions and Expansion of Notice Period for Certain Notices (PDF)

2 pages. Excerpt: "The Internal Revenue Service (IRS) has issued proposed regulations that would: expand the content of the notice required under Internal Revenue Code (Code) section 411(a)(11), dealing with the right of a participant to defer receipt of an immediately distributable benefit; extend the election period for waiving the Qualified Joint and Survivor Annuity (QJSA) under Code section 417 from 90 days to 180 days; and extend the period for distribution of the notices required under Code sections 402(f), dealing with rollover eligibility and tax treatment of distributions, 411(a)(11) and 417 from 90 days to 180 days." (authored by Transamerica Center for Retirement Studies)

1/5/2009 9:07:53 PM

BenefitsLink
[Guidance Overview] IRS Fact Sheet Explains How to Avoid Incorrect Self-Employed Retirement Plan Deductions

Excerpt: "The IRS has released a fact sheet covering retirement plans established by self-employed business owners for themselves and their employees. In particular, the fact sheet explains how self-employed individuals can avoid IRS examinations and additional assessments by preventing incorrect deductions for contributions to retirement plans." (authored by CCH INCORPORATED)

1/5/2009 9:07:53 PM

BenefitsLink
Recession May Jeopardize 401(k) Contributions

Excerpt: "Frontier Airlines suspended its 401(k) match on June 1 as part of a wider effort to cut costs as it works its way through Chapter 11 bankruptcy protection. The airline's plan matched 50 percent of employee contributions, up to 10 percent of salaries. The company reported that the match cost it $4.2 million in 2006. 'This is a recession-type of response. These employers are really up against it and they have to decide to cut somewhere and this seems like the least bad place for them to cut,' said Alicia H. Munnell, director of the Center for Retirement Research at Boston College." (authored by The Associated Press via Google)

1/5/2009 9:07:53 PM

BenefitsLink
[Guidance Overview] Year-End Checklist for Tax-Qualified Retirement Plans (PDF)

5 pages. Excerpt: "The following checklist describes potential year-end amendments and notices that may be necessary for tax-qualified retirement and savings plans. This list is not exhaustive, but is intended to provide a reminder of the general issues that may need to be reviewed and considered." (authored by Morgan, Lewis & Bockius LLP)

1/5/2009 9:07:53 PM

BenefitsLink
[Guidance Overview] Court Bars ESOP-Owned Company from Advancing Defense Costs of Officers Accused of ERISA Fiduciary Breach (PDF)

At page 6 of 9 pages. Excerpt: "In Johnson v. Couturier, 2008 WL 4443085 (E.D. Cal. Sept. 26, 2008), a district court issued an injunction barring an employee stock ownership plan (ESOP)-owned company from advancing the costs of defense under the corporate officers' indemnification agreements with the company. The lawsuit alleged that the corporate officers had breached their ERISA fiduciary duties by engaging in a 'scheme to defraud' the ESOP-owned company by paying themselves grossly excessive compensation. The court found that plaintiffs had shown a substantial likelihood of success on this claim." (authored by Proskauer Rose LLP)

1/5/2009 9:07:53 PM

BenefitsLink
[Guidance Overview] IRS Implements Enrolled Retirement Plan Agent Program

Excerpt: "EBIA Comment: When the IRS revised Circular 230 to authorize ERPAs to practice before the IRS, it recognized the increasing role that TPAs, benefits consultants, and similar service providers who are not attorneys, CPAs, enrolled actuaries, or enrolled agents have come to play in drafting and administering tax-qualified retirement plans. But note that, although ERPAs are now authorized to practice before the IRS, the scope of their practice is limited." (authored by Employee Benefits Institute of America)

1/5/2009 9:07:53 PM