401K Advisor articles from November 2004

401K Advisor archives from November 2004

SAS 70 review: are TPAs as good as they say?(Brief Article)
November 1, 2004... When it comes time to change our recordkeeper or TPA (third arty administration) firm, how do you really know whether an organization is capable of keeping your plan out of trouble? Today there are literally dozens of new recordkeepers, many...

Forced cashouts for delinquent loans?
November 1, 2004... If you have not begun to prepare for the new automatic rollover roles, which apply to forced cashouts after March 28, 2005, you may want to start thinking about them now. These are discussed in this month's Q&A with Roberta Watson, Esq. (See...

Carol Gold speaks on nondiscrimination regulations.
November 1, 2004... On October 22, 2004, the Internal Revenue Service issued a directive from Carol Gold, Director of Employee Plans TE/GE, that could reverse the way plans for prohibited nondiscrimination are tested. The release, entitled "Short Service...

Searching for "costs" in mutual funds.
November 1, 2004... Quoting from Senator Peter G. Fitzgerald, Sponsor of the Mutual Fund Reform Act: "The dilemma of plan sponsors is very similar to that faced by individual investors, because it is virtually impossible to get all fee...

Preparing for new default distribution rules: from an interview with Roberta Casper Watson, Esq.
November 1, 2004... EGTRRA enacted new distribution requirements designed to preserve a participant's retirement benefits. The new rules require a default provision that will result in mandatory IRA rollovers for certain participants with small accounts. This...

Each participant in a separate rate group.(Matthews on 401(K))
November 1, 2004... One of the most popular programs at each year's annual ASPA conference is the IRS Q&A session. At this year's meeting, IRS representatives were asked about the validity of designing a "cross tested" plan with each participant in a separate...

Plan audit quality center.(Matthews on 401(K))
November 1, 2004... The American Institute of CPAs (AICPA) recently launched its Employee Benefit Audit Quality Center to help its members maintain the highest standards in performing quality employee benefit audits. A plan audit generally is required for plans...

IRS and its TEP initiative.(Matthews on 401(K))(Internal Revenue Service)(Team Examination Program)
November 1, 2004... IRS staffing is finally being allocated away from the determination letter process to do other things like plan audits. As a result, you can expect to see an increased level of audit activity this year. The IRS has already announced a...

Streamlined registration for investment managers.(Matthews on 401(K))(Investment Adviser Registration Depository)(Brief Article)
November 1, 2004... On August 24, 2004, DOL/EBSA published in the Federal Register a final rule requiring state-registered investment advisers who are seeking investment manager status under ERISA to register electronically through the Investment Adviser...

Form 1099-R coding.(Matthews on 401(K))
November 1, 2004... A change has been made to the instructions for box 7 for the 2004 Form 1099-R, used to report distributions from retirement plans in 2004. Distribution codes "1" and "2" are to be used in the following manner: Code 1--Early distribution,...

Lost and found: EINs.(Matthews on 401(K))(employee identification number )(Brief Article)
November 1, 2004... This past year many practitioners had to scramble to unravel problems that arose when they learned that EINs assigned to retirement plans became "lost in space." That is, the IRS deactivated the EIN because it had not been used. Deactivation...

The 2004 form 5500.(Matthews on 401(K))
November 1, 2004... On September 28, 2004, the U.S. Department of Labor's Employee Benefits Security Administration (EBSA) released the 2004 Form 5500. This is possibly the earliest date the forms have ever been released. Basically, the Form 5500 and Form...

Regulatory & judicial update.(Illustration)
November 1, 2004... REGULATORY & JUDICIAL UPDATE Item Statement Status Lawsuit over Maki et al v. Allete, Remanded prior sexual 8th Cir., September 7, 2004 to lower...

Profit sharing: 401(k) Council of America, November, 2004.(industry insights)
November 1, 2004... Editor's Note: The Profit Sharing/ 401(k) Council of America's "47th Annual Survey of Profit Sharing and 401(k) Plans" reports on the 2003 plan year experience of 1,161 plans with more than 3.4 million participants and $412 billion in plan...

Creditor protection of retirement plans & affiliated service groups. (Last Word On 401(k) Plans).
November 1, 2004... Last month I discussed how creditor protection under ERISA is affected when the only participant in a retirement plan is a sole stockholder (or sole proprietor) and spouse. This month let's apply that discussion to a single plan covering two...