Description:

This conference is designed for professionals, including financial advisors, CPAs, and attorneys in the employee benefits field who are interested in learning more about cutting-edge plan design opportunities as well as recent developments in the area of employee benefits.

Topics covered include the following:

Plan Design Opportunities

• Recent changes in pension law substantially increased the ability of most owner-employees to accrue retirement benefits under arrangements that may be referred to as cross-tested retirement programs.

• Cross-tested retirement programs provide owner-employees with substantial retirement benefits while providing employees with substantially less generous retirement benefits.

• These cross-tested retirement programs comply with the Internal Revenue Code requirements applicable to the provision of retirement benefits and satisfy non-discrimination requirements applicable to retirement plans.

• Under cross-tested retirement programs, approximately 85% to 90% of the Company’s contribution can be used to provide retirement benefits to owner/employees.

• A portion of the Company’s contribution to employees under a cross-tested retirement program may be subject to a vesting schedule that may have the effect of encouraging employees to continue working for the Company.

 

401(k) Profit Sharing Plans

• The Department of Labor recently issued final regulations on qualified default investment alternatives under 401(k) plans.

• These new rules protect plan sponsors. In the event that a participant fails to give investment direction with respect to plan accounts, the participant will be treated as exercising control over his account balance. As such, the fiduciary will be protected from liability for losses to the participant’s account balance.

• The Department of Labor recently issued guidance on the provision of investment advice to 401(k) profit sharing plan participants.

• This guidance provides a fiduciary “safe-harbor” for providing investment advice under an “eligible investment advisor arrangement”.