Monthly Archives: December 2011

Employee Benefit News says, “For once, it’s the whippersnappers who are behaving more wisely. At least when it comes to saving, Generation X and Generation Y workers are more diligent than their peers.”

Click here for the full article.

Several administrative deadlines are fast approaching for defined contribution retirement plans. December 31, 2011 marks the deadline for the following items:

• Corrective distributions and QNECs
• Safe harbor, QACA, or EACA elections
• Required minimum distribution
• Participant notices
• Self-employed partner elections
• Plan amendment
• Discretionary plan amendments
• Remove safe harbor feature

If you have questions about these deadlines, please contact us at 702-384-1120.

USA Weekend recently included an article about why you should think twice before borrowing from your 401(k):

If you have a 401(k) — particularly a substantial one — it can be tempting to borrow from it. In most cases, however, it’s a dicey move. Here’s why:

• You may compromise your retirement
• Repayment may be tight
• If you can’t pay, taxes and penalties kick in
• Look to other sources first

For the full article, click here.

With reference to the post on December 3, 2011 regarding Housekeeping for Retirement Plans, it is more important than ever to make sure that your tax-qualified retirement plan is in compliance with all relevant rules and regulations.  The Department of Labor (DOL) and Internal Revenue Service (IRS) have not only stepped up their recent enforcement procedures, but they are openly speaking about their efforts.

Within a recent Fact Sheet the Employee Benefits Security Administration (EBSA) agency of the DOL touts that through its enforcement efforts and oversight authority over 708,000 retirement plans, it has achieved $1.05 billion in total monetary results in fiscal year 2010.

In a December 2011 phone forum on its correction programs, representatives from the IRS Employee Plans Examination Program discussed common retirement plan problems and the available correction programs that can be used to restore a plan to the position it would have been in had the error not occurred.

To help plan sponsors ensure they are in compliance, Piercy Bowler Taylor & Kern offers a pre-audit compliance review.  The purpose of this review is to determine the plan’s level of compliance before it is audited by the government and, if any errors or deficiencies are detected, to help correct them as it is less expensive to do so on your own before an official DOL or IRS audit.

Contact us at 702-384-1120 or kparker@pbtk.com for additional information.

“Since the financial crisis and Great Recession, 401(k) plans have undergone dramatic shifts. To foster diversification and greater participation, 51% of participants in Fidelity Investments’ 401(k) plans are in automatically enrolled plans, up from 16% five years ago, and 73% of the plans use target-date funds as the default, up from 11% in 2006.”

Click for full article from EB News.

As with nearly everything else, retirement plans require  periodic maintenance to keep running smoothly. Here are some suggestions to  ensure your plan complies with all laws and regulations and meets the goals of  your benefits program.

• Keep  your plan up-to-date with the law. On a regular basis, ask your benefits  professional “when and what” to change in your plan. Those who specialize in  retirement programs may provide auditing and plan review services.
• Click here for full article from the Employee Benefits Report