IRS revises defined contribution and CODA LRMs for master and prototype plans

Article Abstract:

The IRS has issued revisions of list of required modifications (LRMs) for master and prototype defined contribution plans, as well as revisions of LRMs for 401(k) cash or deferred arrangements (CODAs). The CODA LRMs deal with the distribution of excess elective deferrals of employees. Participants must be able to notify plan administrators of excess elective deferrals, and these deferrals must be distributed, along with any additional earnings. A new method for computing the annual compensation limit also has been added.

Laws, regulations and rules, Defined contribution plans

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Tapping the "K" - loans and hardship distributions from section 401(k) plans

Article Abstract:

Employers must consider the administrative and tax costs of including asset access for employees in their 401(k) plans. Availability of funds through loan and hardship distribution mechanisms is a positive incentive for employees. The need for and scope of access should be predetermined after a careful review of tax law and procedure.

Tax Law, Public Finance Activities, Retirement Benefits, United States, Management, Usage, Loans, Hardship (Law)

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Similar abstracts:

• Abstracts: Excess Benefit Plans, Part II. The Nature of the Promise to Pay in a Section 457 Plan

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