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Planning for Retirement Needs

Planning for Retirement Needs. Plan Installation and Administration, Chapter 13. Setting up a plan Administering a plan Keogh plans Software. Overview. Corporate resolutions Plan and trust documents Explain plan to employees Enrollment meetings Advance-determination letters

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Planning for Retirement Needs

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  1. Planning for Retirement Needs Plan Installation and Administration, Chapter 13

  2. Setting up a plan Administering a plan Keogh plans Software Overview

  3. Corporate resolutions Plan and trust documents Explain plan to employees Enrollment meetings Advance-determination letters Notice to interested parties SPD (next slide) Setting Up a Plan

  4. Clear and simple description Complete description of plan terms 120 days after adoption date See text for more details SPD

  5. No filing required Form 5500EZ Form 5500 Schedules A, insurance —B, actuarial H & I, financial information P, trustee Timing: 7 months after plan year end, 2-1/2 month extension Forms 5500

  6. PBGC—Form 1 file 7 months after plan year SAR—Summary of Form 5500 SMM—Notice of changes to SPD Benefit statements Distributions Other Requirements

  7. QDRO Plan pays out benefits upon divorce Decree must satisfy qualification requirement Compliance problems EPCRS Voluntary Fiduciary Compliance Delinquent Filers Periodic Administrative Issues

  8. The first step in adopting a qualified plan is to communicate the plan to employees. Contributions for the first year must be made by the last day of the first plan year. With a corporation, the board of directors adopts both the plan and trust agreements. It is important to include a disclaimer in the SPD stating that the terms of the plan prevail if there is a discrepancy between the plan and the SPD. True/False Questions

  9. The notice to interested parties is a summary of relevant plan provisions that is given to participants. The SPD must be distributed within 120 days after the plan is adopted. Form 5500EZ is the annual return/report form to be filed by any plan that has fewer than 100 participants. True/False Questions

  10. A summary of material modification notifies participant of basic financial information about the plan. A qualified plan is never allowed to pay benefits to anyone other than the participant or death beneficiary under the anti-alienation rules. True/False Questions

  11. Every qualified plan must file a Schedule B along with Form 5500 each year. A plan that only covers a consultant who is self-employed that has $25,000 of plan assets does not have to file Form 5500 or Form 5500 EZ. If a plan changes the eligibility provision participants must be given a summary of material modification or an updated SPD. True/False Questions (new)

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