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Introduction Rollover vs. Cash Distribution Mandatory Federal Tax Withholding 10% Premature Distribution Penalty Retirement and Termination Death Benefits Disability Benefits Required Minimum Distributions Qualified Domestic Relations Orders Hardship Distributions IRS Special Tax Notice and Reporting Summary A 401(k) plan permits employees to defer a portion of their salaries on a pre-tax basis with the objective...
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Introduction Nondiscrimination Testing Testing Method QNECs and QMACs Gap Period Earnings Safe Harbor 401(k) Plans Hardship Distributions Other Provisions Automatic Enrollments One-Time Irrevocable Election Timing of Deferral Contributions Effective Date Conclusion The Internal Revenue Service has at long last issued final regulations under sections 401(k) and 401(m) of the Internal Revenue Code. The regulations, issued...
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Introduction Background Safe Harbor Requirements Lost Participants Welcome Relief For Terminating Defined Contribution Plans Mandatory Search Methods Other Search Options Distribution Options Conclusion Retaining account balances for terminated participants in a qualified retirement plan often increases the plan’s administration expenses and fiduciary responsibility. Therefore, many plans include what is known as a "mandatory distribution" or...
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Introduction Fiduciary Responsibility ERISA Section 404(c) Types of Investment Alternatives Participant Control Over Accounts ERISA Blackout Periods Disclosure Requirements Required Disclosures Disclosures Upon Request Special Employer Security Rules Common Failures Conclusion A major trend in qualified plans, particularly 401(k) plans, is participant-directed accounts, which enable a retirement plan to give participants control over investment of...
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Introduction Plan Documents Plan Administration Census Information Assets and Transactions Valuation Report Distributions and Plan Loans Participant Notices Government Reporting How Long Must Files Be Kept? Conclusion Every so often, a pension consultant is asked the following question by a client: "How long do we have to keep documents and other records for our retirement...
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