June 2008
401(k) Newsletter
General Issues
Contribution Timing and Collection Responsibility — Summary: When must 401k deposits be made? Who's responsible when contributions are not made? The Department of Labor is flexing its regulatory and advisory muscle to clarify any misunderstanding that may exist and at the same time is asking the benefit's community to suggest alternative solutions. Located at: 401khelpcenter.com. Click on headline for full article.
Ten Tips for Communicating With Employees About Retirement Plans — Summary: Varying degrees of investment knowledge, scattered workforces, limited time and busy schedules all conspire to make getting the message across difficult. Located at: Employee Benefit News (free registration may be required). Click on headline for full article.
The Intricate Web of Plan Amendments Explained — Summary: The purpose of this article is to identify, and generally describe, the various categories of amendments that must be made to individually designed tax-qualified plans during and after the 2008 plan year, and to describe when such amendments must be made. Located at: White & Case LLP. Click on headline for full article.
401k Fee Disclosure a Priority to Legislators and Regulators — Summary: Fee disclosure is receiving considerable attention from the media, lawmakers and regulators. Legislators have held hearings to consider the appropriate disclosures for plan sponsors and plan participants, and have introduced several bills. Although the legislative outcome is uncertain, the regulatory changes are moving along. Located at: Watson Wyatt. Click on headline for full article.
QDIA Notices: Who's Responsible? — Summary: Plan sponsors who do not have knowledgeable in-house benefits staff will likely not be able to fully understand and comply with the QDIA notice requirements. As a result, most small and mid-sized plan sponsors will need to turn to their providers for help. Located at: Reish Luftman Reicher & Cohen. Click on headline for full article.
Certain Retirement Plan Rollovers — Summary: Covers partial or installment distributions from accounts of individuals in qualified plans and the rollover property. Provides examples. Located at: McKay Hochman. Click on headline for full article.
Annuities in 401k Plans Gaining Momentum — Summary: The use of annuities as an investment alternative within 401k plans will gain momentum as those approaching retirement seek to create guaranteed retirement income streams, according to a report by the Financial Research Corporation. Located at: CCH. Click on headline for full article.
Research
Roth 401k: A Benefit to Some Employees; A Challenge to Employers — Summary: The Roth 401k can benefit some employees, but not all. It may be difficult for some people to decide whether this new option is right for them. Employers have a potential challenge also. This is a white paper on the various issues. Located at: AAML.org (PDF File). Click on headline for full article.
Hispanic Americans on the Road to Retirement — Summary: The purpose of the study is to better understand Hispanic Americans� retirement attitudes and behaviors. Located at: Prudential Financial (PDF File). Click on headline for full article.
Financial Experience & Behaviors Among Women — Summary: Prudential Financial's study on the Financial Experience & Behaviors Among Women polled 1,033 American women about their financial knowledge, goals, actions taken, and confidence in attaining financial goals. The survey was administered from October 17 to 25, 2007. Located at: Prudential Financial (PDF File). Click on headline for full article.
DOL and IRS Issues
QDIA FAQ — Summary: The DOL issued FAB 2008-03 in Q&A format to confirm a number of issues about Qualified Default Investment Alternatives regulations of October 24, 2007. The DOL also added clarification to a number of issues and made one addition to the final regulations. The DOL grouped the FAQ by six topic headings. This is an improved re-write of the DOLs FAQ. Located at: McKay Hochman. Click on headline for full article.
IRS Retirement Newsletter for Employers — Summary: This edition includes articles such as New Law...Help for the Small Employer; What Do I Do if My Plan is Selected for an Examination?; New on the Web; We're Glad You Asked!; ERPA is Picking Up Speed; Product Profile - 401k Fix-It Guide; Written Plan Requirement for 403b Plans; This Way to the Forums; DOL News; Hardship Distributions in a 401k Plan; and Timing is Everything Flyer. Located at: IRS (PDF File). Click on headline for full article.
