On January 14, 2010, the Department of Labor issued final regulations for the timely deposit of employee 401(k) contributions and loan repayments.  This ruling now requires plan sponsors with fewer than 100 eligible participants to deposit employee 401(k) contributions and loan repayments to their plan no later than the seventh business day following the payroll date.    

The DOL's ruling does not extend to plans with more than 100 eligible participants, but RPA recommends that all plan sponsors comply with the new ruling.

Please contact your RPA plan administrator if you have any questions regarding the Department of Labor's seven business day safe harbor rule.

The IRS, on May 18, 2009, published proposed regulations, Suspension or Reduction of Safe Harbor
Nonelective Contributions, that would amend Regulations under Code §§401(k) and 401(m). These
proposed regulations provide employers incurring a substantial business hardship an alternative to
terminating their §401(k) safe harbor plans. Employers meeting certain requirements can reduce or
suspend required safe harbor nonelective contributions without losing their plan’s qualified status.

Recent legislation has mandated that all qualified retirement plans be fully amended and restated to comply with a series of tax and pension law changes dating back to 2001. This restatement process is known as the “EGTRRA Restatement”.

As you know, we are currently working to restate all of the plan documents.

Now would be an excellent time to review the provisions of your plan to make sure it is working effectively for you and your company.

Please contact RPA if you would like to discuss your plan options.

A copy of the Summary Plan Description should be given to all employees as they become eligible to participate in the retirement plan.

Please contact your RPA Pension Consultant if you need a copy of the SPD.

The Worker, Retiree and Employer Recovery Act (H.R. 7327) suspends the IRS requirement that minimum distributions be taken from the accounts of those that have reached age 70 ½.  No relief was offered for 2008.

This waiver applies to all defined-contributions plans including 401(k) and 403(b) plans.  It also applies to IRA’s.   The waiver is available for everyone regardless of their total retirement account balances.

For more information, please contact your RPA pension consultant.

IMPORTANT INFORMATION

The IRS has announced the 2010 cost-of-living adjustments for various retirement plan dollar limits.