Author: SPSAdmin

In this issue:

• Introduction
• Plans Subject to the Disclosure Requirements
• Compliance Dates
• Who Must Provide the Disclosures?
• Designated Investment Alternatives
• Plan-Related Information
• Investment-Related Information
  • Variable Rate of Return Investments
  • Fixed or Stated Rate of Return Investments
  • Website and Glossary Requirements
• Quarterly Statements of Actual Fees and Expenses
• Materials Provided Upon Request
• Summary

In this issue:

• Introduction
• Why do we Care?
  • Count the Cost
  • Stand and be Counted
  • Tell the Participants
  • Tell the IRS
• What are the Options?
  • Small Balances
  • Larger Balances
  • Fees
  • Residual Distributions
• What about Plan Terminations?
• Conclusion

In this issue:

• Introduction
• What is a QDRO
• Requirements
  • Identification of the Parties
  • Description of Benefits
  • Purpose and Direction of Payment
• Prohibitions
  • Inconsistency with Plan Provisions
  • Amount of Benefits
  • Conflict with Previous QDRO
• Processing
• Don’t Make Assumptions
• Death and Taxes
  • Taxes
  • Death
• Summary

In this issue:

• Introduction
• Nondiscrimination Testing
• Safe Harbor Plan Eliminates Nondiscrimination Testing
• Safe Harbor Contributions
  • Nonelective Contributions
  • Matching Contributions
• How the Plan is Established
• Notice Requirement
• Other Rules
• Suspension of Contribution
• Automatic Enrollment Safe Harbor
• Eligible Combined Plan
• Conclusion

Designated Roth contributions (a/k/a Roth 401(k) or Roth deferrals) have been available since 2006, but a change in the tax laws governing Roth IRAs has reenergized discussions about this feature. This article is in Q&A format and addresses some of the more common questions about Roth 401(k) contributions. But first, a brief overview…

Traditional deferrals reduce a participant’s income for federal and, in most cases, state tax purposes at the time of contribution. Those amounts grow on a tax-deferred basis until the participant takes a distribution, which is taxable as ordinary income. Roth deferrals are fully taxable to the participant at the time of contribution. However, if certain requirements are met, so-called “qualified distributions” of Roth deferrals and the earnings thereon are completely tax free.

Apart from the tax differences, Roth deferrals are treated the same as traditional deferrals for all plan purposes. The normal limits and non-discrimination requirements apply. Roth deferrals are also subject to the same withdrawal restrictions, i.e. death, disability, retirement, financial hardship, etc.

In this issue:

• Introduction
• Plan Asset Rule
• General Deposit Timing Rule
• The Confusion
• Safe Harbor Deadline Offers Welcome Guidance for Small Plans
• What’s the Worst that can Happen?
• Form 5500 Reporting of Late Deposits
• The Fix Is In
• Conclusion

In this issue:

• Introduction
• Notices Required for all DC Plans
  • Summary Plan Description (SPD) and Summary of Material Modification (SMM)
  • Summary Annual Report (SAR)
  • Participant Benefit Statement
  • Beneficiary Designation Forms
  • Fee Disclosure
• Provision-Specific Notices
  • Automatic Enrollment Notice
  • Safe Harbor Notice
• Investment Disclosures
  • Qualified Default Investment Alternative (QDIA) Notice
  • Diversification of Employer Securities
  • 404(c) Disclosure
• Event-Driven Notices
  • Distribution Notices
  • Participant Loans
  • Blackout Notice
• It’s Not Easy Being Green
• Conclusion