Monday, September 28, 2009

IRS Notice 2009-68 – Safe Harbor Explanation — Eligible Rollover Distributions

Part III --- Administrative, Miscellaneous, and Procedural

IRS Notice 2009-68 – Safe Harbor Explanation — Eligible Rollover Distributions

Safe harbor explanations — eligible rollover distributions. This notice contains two safe harbor explanations that may be provided to recipients of eligible rollover distributions from an employer plan in order to satisfy section 402(f) of the Code. The first safe harbor explanation applies to a distribution not from a designated Roth account, as described in section 402A. The second safe harbor explanation applies to a distribution from a designated Roth account. These safe harbor explanations update the safe harbor explanations that were published in Notice 2002-3, 2002-1 C.B. 289, to reflect changes in the law. This notice is part of the "Savings Initiative" guidance issued by the Service. Notice 2002-3 modified and superseded.

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Friday, September 25, 2009

Employee Plans News - Special Edition, September 25, 2009

The IRS published Employee Plans News - Special Edition, September 25, 2009:

Upcoming Funding Regulations; Additional Guidance on 2009 Waiver of Required Minimum Distributions


This Special Edition of Employee Plans News contains the following articles:
  • Upcoming Funding Regulations - states that the IRS and the Department of Treasury expect to issue final regulations in the near future that will cover measurement of assets and liabilities under §430, and the application of benefit restrictions of §436 for single-employer defined benefit plans. It also provides assistance to actuaries in issuing the adjusted funding target attainment percentage (AFTAP) for 2009.
  • Additional Guidance on 2009 Waiver of Required Minimum Distributions – explains key provisions of Notice 2009-82, issued on September 24, 2009, that provides guidance, transitional relief, sample plan amendments and answers to questions related to the waiver of 2009 required minimum distributions.

Wednesday, September 23, 2009

Employee Plans News - Fall 2009 Edition

The IRS released Employee Plans News - Fall 2009 Edition. It contains the following articles:

  • Dos and Don'ts of Hardship Distributions;
  • IRS Retirement Plans Online;
  • When Limits Collide, Which One Wins?;
  • Tax Return Preparer Review Board; Critical Priorities…With Monika Templeman Today's Discussion: Loans and Hardships in 401(k) Plans;
  • A Message from the Advisory Committee on Tax Exempt and Government Entities: Stakeholders: please participate!;
  • Employee Plans Published Guidance;
  • 401(k) Phone Forum Rescheduled to September 30, 2009;
  • We're Glad You Asked!;
  • Ways to Avoid Delays: Determination Letter Application Processing Procedures;
  • Retirement & Savings Initiatives: Helping Americans Save for the Future;
  • The EPCU Insider - Master & Prototype (M&P) Project;
  • Highlights of the Retirement News for Employers;
  • PBGC Insights;
  • DOL Corner;
  • Calendar of EP Benefits Conferences

Friday, September 18, 2009

DOL Notice of Proposed Individual Exemption Involving General Motors

The DOL announced a proposed exemption to allow a General Motors health plan for retirees to acquire company securities:

WASHINGTON — The U.S. Department of Labor's Employee Benefits Security Administration (EBSA) today announced a proposed exemption that, if granted, would allow the General Motors Co. (GM) to transfer company securities including common stock, preferred stock and a $2.5 billion promissory note, to a health plan established for the company's retirees. The retiree health plan will cover approximately 700,000 retirees and dependents when it becomes effective on Dec. 31, 2009.

GM is the successor company that purchased substantially all of the assets of General Motors Corp. (the old GM), which filed for bankruptcy on June 1, 2009. GM is headquartered in Detroit, Mich.

The large transfer of employer securities to the plan violates the Employee Retirement Income Security Act (ERISA). ERISA prohibits certain plans from holding large percentages of plan assets in the form of employer securities. The law gives the department authority, however, to grant exemptions that protect the interests of plan participants and beneficiaries.

The exemption would allow the securities transfer, permit GM and its health plans to reimburse each other for benefit payments mistakenly paid by the wrong entity during the transition to the new plan, and permit GM to recover mistaken deposits to the plan.

A major condition of the proposal is the appointment of an independent fiduciary to represent the plan with regard to GM securities transactions. The independent fiduciary will determine in advance of taking any action regarding the securities that the action is in the interests of the plan and its participants and beneficiaries. The proposed exemption also requires the review of benefit payments by an independent third party administrator and auditor for each of the plans and an objective dispute resolution process. In addition, the proposal set time limits for return of mistaken deposits and an objective dispute resolution process.

The proposed exemption is scheduled to be published in the Sept. 18, 2009, edition of the Federal Register. Comments on the proposal and any requests for a public hearing should be submitted to gm@dol.gov or by fax to 202-219-0204. Paper-based comments should be sent to the Office of Exemption Determinations, Employee Benefits Security Administration, Room N-5700, U.S. Department of Labor, 200 Constitution Ave. N.W., Washington, D.C. 20210, Attention: Application Number L-11568.

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Wednesday, September 9, 2009

Retirement News for Employers - Special Edition, September 2009

The IRS published Retirement News for Employers - Special Edition, September 2009:

This Special Edition discusses the release of Notice 2009-3 which extends the deadline for 403(b) plan sponsors to adopt new written plans or amend their existing written plans from January 1, 2009, to December 31, 2009.

This special edition discusses the Retirement & Savings Initiatives, Rollovers From Employer Plans to Roth IRAs, the IRS Retirement Plans Navigator and Life Events That Can Affect Retirement Savings.

Employee Plans News - Special Edition, September 2009

The IRS published Employee Plans News - Special Edition, September 2009:

Retirement & Savings Initiatives: Helping Americans Save for the Future; Rollovers from Employer Plans to Roth IRAs; Now Online

This special edition discusses the Retirement & Savings Initiatives, Rollovers From Employer Plans to Roth IRAs, the IRS Retirement Plans Navigator and Life Events That Can Affect Retirement Savings.