Annual Notices 11/20/2009

Transcription

1 ANNUAL NOTICES 401(k) or 403(b) Plans Ethel Myles-Henderson, Esq. Judy Ringlein-Dunn Agenda Types of tices using DATAIR Locating and Generating a tice Individually Multi- Plan Operations Summary of Annual tice Requirements Contents and Timing Building tices Safe Harbor tice Automatic Enrollment tice Safe Harbor tices Annual Will tice All Document Types with Safe Harbor provisions on Adoption Agreement or Checklist Annual tice Volume Submitter IDP Existing Plans without Safe Harbor Provisions Supplemental tice Confirming Safe Harbor n-elective Contribution Suspension tice Discontinue or Reduce Safe Harbor n-elective Contribution Safe Harbor Matching Contribution (c) 2009 DATAIR 1

2 Automatic Enrollment tices Automatic Contribution Reduction Elected in EGTRRA document Revenue Ruling Eligible Automatic Contribution Reduction Elected in 2009 Interim Amendment Final Regs for (see section 1.414(w) -1(3)) Reasonable Period before the beginning of the Plan Year Permissible Withdrawal Election Qualified Automatic Contribution Reduction Elected in 2009 Interim Amendment without? Completing tices in DATAIR Location Folder View Print Generate and Print tices Individually Multi-Plan Operations Multi-Plan Operations Expanded All types of Safe Harbor tices All types of Automatic Enrollment tices Filter Select Groups of Plans (c) 2009 DATAIR 2

3 Annual tice Requirements Safe Harbor Final 401(k) Regs Treas. Regs (k)-3(d) and 1.401(m)-3(e) Includes Automatic Enrollment 401(k)-13(e) & Final Regs. Effective February 24, 2009 See also Treas. Regs (w) Contents Plan Provision Adoption Agreement VS Checklist Timing Annual tices - Timing Days Prior to First Day of Plan Year Situation SHP with Calendar Year-Plan Year, Annual tice to all participants New SHP: Short Plan Year permitted. (must be at least 3 months). Initial Annual tice. n-elective SHP: initial Plan Year, initial Annual tice Newly eligible participants in SHP after the Annual tice is distributed Latest Date for Distribution Distribute by December 1 Distribute by September 30 or October 1 for calendar year plans or with day window. Distribute no later than 30 days prior to the last day of the Plan Year. Distribute ASAP, before the first pay period that includes the employee s Entry Date Annual tices - Timing Days Prior to First Day of Plan Year Annual tices tice for newly eligible participants / Annual tices Distribute ASAP with an salary deferral election window that provides employees with an effective opportunity to make a deferral election. (Rev. Ruling ) Distribute ASAP after date of employment. later cut-off date for salary deferral elections. Same as 401(k) Safe Harbor / for newly eligible participants on their Plan Entry Date. Distribute ASAP after becomes a Covered Employee. later than the first pay period that includes the employee s Entry Date. (c) 2009 DATAIR 3

4 Annual tices Timing **Caution** Suspension tice Requires 30-day tice prior to the Adoption Date or the Effective Date of the Amendment. IRS requires Reasonable Period before the beginning of Plan Year Facts and Circumstance FEATURES Default Percentage Any whole percentage Uniform Percentage Specified Scheduled Percent Automatic Annual Increases/Escalator Employer Contribution & Specified Permissible Withdrawal Implemented Any Time 12-month Plan Year 12-month Plan Year FEATURES ADP/ACP Test Exempt 6 month extension for Corrective Distributions If All Eligible are Covered Employee Compensation Any 415(c) or 414(s) Definition Any 415(c) or 414(s) Definition Must be 414(s) Definition Covered All Eligible Permits Design Flexibility All Eligible (c) 2009 DATAIR 4

5 Covered All Eligible for Elective Deferrals New Restrictions Current w/o Affirmative Election Participate with less than Default % Annual expiration of Affirmative Election Restrict to Specific Groups of Employee Resources DS/WIN Release tes (see DS Help Menu) DATAIR Employee Benefit Systems, Inc. Customer Support support@datair.com Telephone: (630) DATAIR Discussion Forums Internal Revenue Service (IRS) Retirement Plans Community: (c) 2009 DATAIR 5