faces
                     ...from the HR Perspective
New MFYCO
Human Resource UpdateJanuary 2013

  

Where Are We Going?

2013 is going to be an interesting year. Obamacare is ramping up for a cotillion in 2014, taxes have been raised, the National Labor Relations Board is poised to make additional (we believe) anti-business pronouncements (let us hope that the appointment suits are successful), labor unions have been emboldened, unemployment benefits have been extended again, environmental and fishing regulations will affect many businesses, and the Fed is printing more dollars. And these are only some of the highlights.

In contrast to the foregoing, as of January 30th, the market is up, the Dow has increased by about 6%, the NASDAQ by 1.6%, and the S&P 500 by about 5%. Participants in 401(k) and other account based plans participant will welcome this good news. Corporate sponsors of defined benefit retirement plans will also celebrate the increase as asset development lowers liabilities. The interest market is remaining somewhat constant (low). That is both a boon and a bane - remaining that way keeps the cost of borrowing in check, but higher rates bring down the liabilities of defined benefit retirement plans and other post retirement benefits.

2013 will be a challenging year. We would be honored to bring our experience and expertise to work with you to face these challenges.

 

Sincerely,

 

Michael F. Yates, 

President

 

If you find value in this newsletter please let us know. Feel free to call me with a comment and/or ask a question at any time (908-689-4200) or send me an email ([email protected]). We offer this timely information as another benefit of your relationship with our company. If you feel a friend or colleague would benefit from receiving our newsletter, please feel free to forward a copy. 


You can view all of our newsletters by clicking the 'newsletter archives' link at our company website www.mfyco.com.

 

In This Issue
Form 5500 Delinquency Notices from the IRS
MFYCO Facebook
Sitting Pretty
Involuntary (Mandatory) Distributions to Certain Terminated Participants
From the U.S. Labor Department
How to Handle Missing Work When You Are Sick
AFFORDABLE CARE ACT NOTICE REQUIREMENT DELAYED
eLaws Quick Link
Retirement Plan Limits
Track Government Spending
Terms of Use

 

Form 5500 Delinquency Notices from the IRS (CP 403 and CP 406 Notices)

Okay, you filed your Form 5500, but you just got a notice from the IRS looking for it - what now?

The CP 403 and 406 Notices are delinquency notices about filing Form 5500-series returns. If you receive a notice, MFYCO is always available to prepare a response to the IRS for you, however the following FAQs will help you if you want to prepare a response.

These FAQs provide general information and should not be cited as any type of legal authority. They provide general information. Because these answers do not apply to every situation, yours may require additional research.

1.      Why was this notice sent?

2.      Why are CP 403 and 406 Notices for Forms 5500 generated?

3.      What should be done upon receiving a CP 403/406 Notice?

4.      What should be done if the EIN, Plan Name or Plan Number on the copy of the return does not match the Notice?

5.      What should be done if the CP 403/406 Notice was sent by mistake?

6.      What should be done if the information on the copy of the return matches the information in the CP 403/406 Notice?

7.      What should be done if a final Form 5500 series return was filed in a previous year?

8.      What should be done if the filer is exempt from filing a Form 5500-EZ (assets less than $100,000 for plan years beginning on or after Jan 1, 1994 or $250,000 for plan years beginning on or after Jan 1, 2007) and filed incorrectly in the past?

9.      What should be done if the filer is exempt from filing Form 5500 series return per the instructions and filed incorrectly in the past?

10.  Who is responsible for the Form 5500 series filing?

11.  Is it possible to call or write to get an extension of time to reply to the CP 403/4065 Notice?

12.  What are the penalites on late-filed or incomplete returns?

13.  Is there any recourse to being subject to the penalties?

14.  Who should be contacted with questions about a CP 403/406 Notice?

15.  Where should replies to CP 403/406 Notices be sent?

__________________________________________________________

1.      Why was this notice sent?

These notices are sent to filers who did not file a Form 5500-series return for a particular plan year and our records indicate the plan is still active.

2.      Why are CP 403 and 406 Notices for Forms 5500 generated?

Neither the CP 403 nor CP 406 Notices are bills. They are requests for a missing/non-filed Form 5500, 5500-EZ or 5500-SF

The CP 403 Notice is mailed to the filers fifteen (15) months after the original due date of the return. This allows enough time for the Department of Labor to process timely filed returns. The CP 403 has a 30-day response date. If a response is not received by the response date, a Final Notice (CP 406) is mailed fifteen (15) weeks after the CP 403.

The CP 406 Notice also has a 30-day response date. Responses must be received within 30 days to prevent further account action.

3.      What should be done upon receiving a CP 403/406 Notice?

  • Records should be reviewed to determine if a Form 5500/5500-EZ/5500-SF was filed.
  • Review the copy of the filed return to ensure the EIN, plan name and plan number on the copy of the return match the notice received.

4.      What should be done if the EIN, Plan Name or Plan Number on the copy of the return does not match the notice?

The following should be submitted:

  • A copy of the CP 403/406 Notice received with Section I completed, and
  • A statement explaining why the information on the Notice does not match the information on the return (the statement should explain why the return was filed under a different sponsor name/EIN/ plan number/ etc.).

5.      What should be done if the CP 403/406 Notice was sent by mistake?

A copy of the Notice should be sent to the address shown below (in the last FAQ) along with a statement explaining why it is thought the notice was mistakenly sent.

6.      What should be done if the information on the copy of the return matches the information in the CP 403/406 Notice?

  • Form 5500/5500-SF:

If you filed the return within the last four weeks and used the name, EIN and plan number shown on the notice, then you may ignore the CP 403 Notice. However, if you receive a CP 406 Notice, you must respond by returning the CP 406 Notice with Section I completed.

  • Form 5500EZ:

If the return was already filed timely, submit:

(a)          A copy of the CP 403/406 Notice received,

(b)         A copy of the Form 5500-EZ (make sure the copy is signed by the plan sponsor/ administrator),

(c)          A signed letter indicating this is a copy of a previously submitted return,

(d)         Any appropriate supporting documents, and

(e)          Evidence the return was timely filed. Evidence can be a:

i.        Copy of the timely filed extension and the date the original return was filed,

ii.   Statement filed under the DOL's Delinquent Filer Voluntary Compliance (DFVC) Program. The statement can be very brief stating the IRS should assess no penalty since a DFVC filing was completed. The statement should indicate when the filer became a participant in the DFVC program, or

iii.    Copy of the request for penalty abatement due to reasonable cause (generally submitted with the late return). The statement must be in writing and include the reason why the return was late and be signed by a person in authority.

7.      What should be done if a final Form 5500 series return was filed in a previous year?

Review the copy of the previously filed Form 5500/5500-SF or 5500-EZ to determine if:

    • The final return box was checked,
    • If the return indicated zero assets at the end of the year, and
    • If the return indicated zero participants at year-end.

If the copy of the return indicates all of the above, then respond to the CP 403/406 Notice with Section II completed. If the copy of the return does NOT indicate all of the above, then our records will not indicate a final return was filed. A return must continue to be filed until the plan has zero assets and zero participants or the previously filed return must be amended. You should respond to the notice that you will/have filed the missing return and complete Section III of the CP403/406 Notice.

8.      What should be done if the filer is exempt from filing a Form 5500-EZ (assets less than $100,000 for plan years beginning on or after Jan 1, 1994 or $250,000 for plan years beginning on or after Jan 1, 2007) and filed incorrectly in the past?

If exempt from filing, the following should be submitted:

         A copy of the CP 403/406 Notice received with Section II completed, and

         A statement indicating:

(a)    The requirements to be exempt from filing a Form 5500-EZ were met, and

(b)   The combined assets in all retirement plans (not including IRAs, SEP-IRAs and SIMPLE IRAs) has been $100,000 or less for every plan year beginning on or after January 1, 1994 or $250,000 for plan years beginning on or after Jan 1, 2007.

9.      What should be done if the filer is exempt from filing a Form 5500 series return per the instructions and filed incorrectly in the past?

If exempt from filing, the following should be submitted:

         A copy of the CP 403/406 Notice received with Section II completed, and

         Adetailed explanation in writing stating which exemption has been met or why the return is not required to be filed.

10.  Who is responsible for the Form 5500 series filing?

The plan sponsor and plan administrator are ultimately responsible for the filing of the annual Form 5500, 5500-EZ or 5500-SF.

In some cases, the plan sponsor and plan administrator may have a contract with an outside administrator who may actually complete the annual Form 5500-series filings. However, the plan sponsor and plan administrator are responsible for the accuracy of the filing and they must sign the return. In order to determine if completion of the Form 5500-series is covered under a contract with the outside administrator, the plan sponsor and plan administrator should review their contract with the outside administrator.

To find out what Forms 5500, 5500-EZ or 5500-SF were filed in the past, filing information may be researched at www.free.erisa.com .

11.  Is it possible to call or write to get an extension of time to reply to the CP 403/406 Notice?

Extensions to reply to the CP 403/406 Notice are not allowed. The CP 403 has a 30-day response date. If a response is not received by the response date, a Final Notice (CP 406) is mailed fifteen (15) weeks after the CP 403. A response must be received within the 30-day timeframe to prevent further action on accounts.

12.  What are the penalties on late-filed or incomplete returns?

The IRS penalties for late filing are $25 per day up to a maximum of $15,000.

The DOL penalties can run up to $1,100 per day (no maximum).

 

Types of Plans

IRS Penalty

DOL Penalty

Pension

 X

 X

Welfare Plan

 

 X

Welfare/Fringe Benefit Plan 

 

 X

All Form 5500-EZ Filers

 X

 

 

Note: An incomplete return is not considered filed until it is complete. Incomplete returns are subject to late-filing and/or incomplete penalties from the IRS and/or DOL.

13.  Is there any recourse to being subject to the penalties?

Yes, both IRS and DOL have programs to deal with penalties on the Form 5500.

Notice 2002-23 was issued in conjunction with the publication in the Federal Register of modifications to the DOL's DFVC. Please review the Notice and DFVC Program to determine eligibility to file under these programs to have DOL penalties reduced and IRS penalties abated.

IRS Notice 2002-23 provides administrative relief from the penalties under sections 6652(c)(1), (d), (e), and 6692 of the Code for failure to timely comply with the annual reporting requirements under sections 6033(a), 6057, 6058, 6047, and 6059 of the Code for Form 5500. This administrative relief applies to late filers who both are eligible for and satisfy the requirements of the DFVC program.

Note: The DFVC program does not apply to Form 5500-EZ filers.

Only the IRS can assess penalties on Form 5500-EZ. The DOL does not have any jurisdiction over Form 5500-EZ and cannot assess penalties against delinquent Form 5500-EZ filings and, therefore, cannot include them in their DFVC Program. The IRS will consider a "reasonable cause" statement submitted explaining why the return is late.

14.  Who should be contacted with questions about a CP 403/406 Notice?

Call Customer Account Services at (877) 829-5500 (toll-free) for questions about the Notices and Form 5500, 5500-EZ or 5500-SF filing requirements.

15.  Where should replies to CP 403/406 Notices be sent?

The address to send responses is listed in the upper left-hand corner of the Notices and the fax number is listed in the body of the Notices. Only employees in Ogden can adjust accounts.

Write or fax the EP Entity Unit in Ogden using the following contact information:

Regular Mail:

Internal Revenue Service

Ogden, UT 84201-0018

Attention: EP Entity Unit, Mail Stop 6273

Fax Number: (801) 620-7116

Private Delivery Service:

Internal Revenue Service

1973 N. Rulon White Blvd.

Ogden, UT 84404

Attention: EP Entity Unit, Mail Stop 6273

Information Last Reviewed or Updated by the IRS: 2012-09-13

 

 
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Involuntary (Mandatory) Distributions to Certain Terminated Participants

As you now know, from a previous newsletter, administrator's of qualified plans are no longer able to use the Internal Revenue Service's Letter Forwarding Program to locate missing former participant's.  There are several reason why it is important to pay out former participants with small benefits or account balances, chief among them are (1) accelerated vesting if plan terminates and (2) for defined benefit plans, the continued payment of PBGC premiums. So, in our experience, it is best to pay out terminated vested employees as soon as possible.

Although, a plan is not required to authorize cash-out distributions, it is permitted, in certain circumstances, to provide for the payment of a participant's vested accrued benefit, or account balance, in a lump sum-a "cash out".  Where an employee's plan participation terminates, a plan may involuntarily "cash out" the benefit-that is, pay out the balance to the credit of the plan participant without the participant's consent (and, if applicable, the participant's spouse)-if the present value does not exceed $5,000 (this $5,000 cash out limit is not adjusted for inflation). If the present value of a vested benefit exceeds $5,000, a plan may cash it out only with the employee's consent, provided that the plan permits benefits to be paid in the form of a single lump sum.

The following is taken from Internal Revenue Service Notice 2005 - 5 (NOTE: Q&As that relate to governmental plans, IRC �403(b) plans and electing church plans have been eliminated from the information provided below):

BACKGROUND

Section 401(a)(31)(A) of the Code and �1.401(a)(31)-1 of the Income Tax Regulations provide that a distributee of any eligible rollover distribution, as defined in �402(f)(2)(A), may elect to have such distribution paid directly to an eligible retirement plan and that such distribution must be made in the form of a direct rollover to the specified eligible retirement plan. Section 402(f)(1) requires that the plan administrator provide a written explanation to the recipient of the provisions under which the recipient may have the distribution paid directly to an eligible retirement plan as defined in �402(c)(8) in a direct rollover.

Sections 411(a)(11) and 417(e) permit plans qualified under �401(a) to include provisions allowing for the immediate distribution of a separating participant's benefit without such participant's consent where the present value of the nonforfeitable accrued benefit is less than $5,000.

Section 657 of EGTRRA amended �401(a)(31)(B) of the Code to require that mandatory distributions of more than $1,000 from a plan qualified under �401(a) be paid in a direct rollover to an individual retirement plan (i.e., an individual retirement account as described in �408(a) or an individual retirement annuity described in �408(b)) of a designated trustee or issuer if the distributee does not make an affirmative election to have the amount paid in a direct rollover to an eligible retirement plan or to receive the distribution directly. Section 657(a) of EGTRRA also added a notice provision to �401(a)(31)(B)(i) of the Code which requires that the plan administrator notify the distributee in writing (either separately or as part of the �402(f) notice) that the distribution may be paid in a direct rollover to an individual retirement plan.

On September 28, 2004, the Department of Labor issued final regulations (29 CFR �2550.404a-2) pursuant to �657(c)(2)(A) of EGTRRA. 69 FR 58017. Section 2550.404a-2 of those regulations establishes a safe harbor under which a fiduciary of an employee pension benefit plan subject to Title I of ERISA will be deemed to have satisfied his or her fiduciary duties under �404(a) of ERISA in connection with an automatic rollover of a mandatory distribution described in �401(a)(31)(B) of the Code. Section 2550.404a-2(c) provides the conditions under which a fiduciary qualifies for the safe harbor described in the preceding sentence. The safe harbor contained in �2550.404a-2 applies only to employee pension benefit plans covered under Title I of ERISA. The safe harbor contained in �2550.404a-2 also applies to automatic rollovers of $1,000 or less.

QUESTIONS AND ANSWERS

Q-1.     To what distributions do the automatic rollover requirements of �401(a)(31)(B) apply?

A-1.     The automatic rollover requirements apply to any mandatory distribution that is more than $1,000 and is an eligible rollover distribution that is subject to the direct rollover requirements that are in �401(a)(31). Thus, in order for a plan that provides for such mandatory distributions to be qualified under �401(a), it must satisfy the automatic rollover provisions of �401(a)(31)(B). Pursuant to Q&A-16 of �1.401(a)(31)-1 of the Income Tax Regulations, an eligible rollover distribution in the form of a plan loan offset amount is not subject to the automatic rollover provisions of �401(a)(31)(B).

Q-2.     What is a mandatory distribution?

A-2.     A mandatory distribution is a distribution that is made without the participant's consent and that is made to a participant before the participant attains the later of age 62 or normal retirement age. A distribution to a surviving spouse or alternate payee is not a mandatory distribution for purposes of the automatic rollover requirements of �401(a)(31)(B). Although �411(a)(11) generally prohibits mandatory distributions of accrued benefits attributable to employer contributions with a present value exceeding $5,000, the automatic rollover provisions of �401(a)(31)(B) apply without regard to the amount of the distribution as long as the amount exceeds $1,000.

Q-3.     How is the automatic rollover requirement of �401(a)(31)(B) satisfied?

A-3.     In order to satisfy the automatic rollover requirement of �401(a)(31)(B), a plan must provide that, when making a mandatory distribution that exceeds $1,000 and that is an eligible rollover distribution, if, after receiving the notice described in �402(f), a participant fails to elect to receive a mandatory distribution directly or have it paid in a direct rollover to an eligible retirement plan, the distribution will be paid in a direct rollover to an individual retirement plan.

Q&A4 - Removed

Q&A5 - Removed

Q&A6 - Removed

Q&A7 - Removed

Q&A8 - Removed

 Q&A9 - Removed

Q-10.   Can a plan administrator set up an individual retirement plan for a participant who is receiving a mandatory distribution and who has not elected to have such distribution paid directly to an eligible retirement plan in a direct rollover or to receive the distribution directly?

A-10.   Yes, if a participant receiving a mandatory distribution fails to elect to have such distribution paid to an eligible retirement plan in a direct rollover or to receive the distribution directly, the plan administrator may execute the necessary documents to establish an individual retirement plan on the participant's behalf with a financial institution selected by the plan administrator. For this purpose, the plan administrator may use the participant's most recent mailing address in the records of the employer and plan administrator. The trustee or issuer of the individual retirement plan must provide a disclosure statement to the participant and provide a revocation period as prescribed in �1.408-6. The trustee or issuer of the individual retirement plan will not be treated as failing to satisfy the disclosure requirements of �1.408-6 merely because the disclosure statement is returned by the United States Postal Service as undeliverable after it was mailed to the participant using the address for the participant provided by the plan administrator as the participant's most recent mailing address in the records of the employer and plan administrator.

Q-11.   May a mandatory distribution be paid to an individual retirement account under �408(c) or a deemed individual retirement account under �408(q) that is part of the plan that is making the distribution?

A-11.   Yes, a mandatory distribution may be paid to a participant's individual retirement account that meets the requirements of �408(c) or to a participant's deemed individual retirement account that meets the requirements of �408(q).

Q-12.   Can a plan sponsor eliminate mandatory distributions from its plan without violating the anti-cutback provisions of �411(d)(6) of the Code?

A-12.   Yes, �1.411(d)-4, A-2(b)(2)(v), provides that a plan sponsor may amend or change a plan to eliminate a provision which requires the plan to make a mandatory single-sum distribution to participants pursuant to �411(a)(11) without violating �411(d)(6).

Q-13.   If a plan is subject to the joint and survivor annuity and preretirement survivor annuity requirements of �401(a)(11) and the plan provides that an accrued benefit greater than $1,000 but not greater than $5,000 will be distributed to a participant only with the consent of the participant, would a distribution of such an accrued benefit be subject to spousal consent requirements?

A-13.   No. Section 1.417(e)-1(b)(2)(i) provides that no spousal consent is required before the annuity starting date if the present value of the nonforfeitable benefit is not more than the cash-out limit in effect under �411(a)(11).

Q-14.   Are amounts attributable to rollover contributions that exceed $5,000 subject to the automatic rollover provisions of �401(a)(31)(B)?

A-14.   Yes. Section 401(a)(31)(B) applies to the entire amount of a mandatory distribution. Thus, for example, the portion of the distribution attributable to a rollover contribution is subject to the automatic rollover requirements of �401(a)(31(B), even if that amount is excludable (under �411(a)(11)(D)) from the determination of whether the present value of the nonforfeitable accrued benefit exceeds $5,000.

Q-15.   Is a plan administrator required to notify a participant to whom a mandatory distribution is going to be made that, absent the participant's affirmative election, the distribution will automatically be paid to an individual retirement plan in a direct rollover?

 

A-15.   Yes. Section 401(a)(31)(B)(i) requires that the plan administrator notify the participant in writing (either separately or as part of the �402(f) notice) that, absent an affirmative election by the participant, the distribution will be paid to an individual retirement plan. The notice must identify the trustee or issuer of the individual retirement plan. A plan administrator will not be treated as failing to satisfy this notice requirement merely because the notice is sent using electronic media in accordance with A-5 of �1.402(f)-1. Further, for an eligible rollover distribution paid as an automatic direct rollover. a plan administrator will not be treated as failing to satisfy this notice requirement or section 402(f) with respect to an eligible rollover distribution merely because the notice is returned as undeliverable by the United States Postal Service after having been mailed to the participant using the participant's most recent mailing address in the records of the employer and plan administrator. 

 

As always, please contact MFYCO if we can be of any assistance to you in making involuntary distributions to your terminated participants. 

 

 

 

Call: 908-689-4200 to contact a
MFYCO professional consulting associate.
happypeople
 
FYI - From the U.S. Labor Department 
  

157,000 jobs were added in January mostly in the retail trade, construction, health care, and wholesale trade.  Unemployment remains at 7.9%.

 


 What would you like to see in a future issue?

Contact our office with your suggestions.

 
  

How to Handle Missing Work When You Are Sick

Courtesy of CareerBuilder

 

   

 

Flu season is here and it doesn't look as if it will be over any time soon. According to the Centers for Disease Control and Prevention, as of Jan. 18, 48 states reported widespread flu activity. So even if you're not sick, someone around you may be under the weather. 

This is especially true in the workplace. Chances are someone in your office isn't feeling well but decided to come to work anyway. A 2011 CareerBuilder survey found that 72 percent of workers typically go to work when they're sick. One reason? The guilt factor. More than half of workers said they feel guilty if they call in sick.

Working from home versus not working at all


While you may be nervous about missing work, stay home anyway, especially if you have a fever or think you might be contagious. If you have the energy to work but you're mostly concerned about infecting others, consider doing some work from home. Most employers are flexible, since these days, many workers can get almost as much accomplished at home as in the office. If you have a laptop, an Internet connection and a phone, you should be able to knock out the most important to-dos or at least keep up with your emails.

 

But if you're really under the weather, you should step away from the computer and rest so you can recuperate. It won't help anyone if you continue to work while sick, only to end up sicker than before.

"Quality of work can suffer when an employee isn't feeling well; it is sometimes better to take an extra day completing an assignment and do it correctly rather than rush through and perform poorly," says Peter Handal, CEO of international training company Dale Carnegie Training. "If an employee knows the quality of their work will be negatively affected due to their illness, it is best for all parties involved to call in sick."

Handling the workload


Shutting off from work may seem easier said than done, but if you plan, rely on your co-workers and give yourself a break, you can get through it. Here are tips from Handal on how to ensure your colleagues' and clients' needs are met while you stay home and recover:

 

         Don't delay: If you're feeling under the weather, call in sick as early as you can -- the night before if possible. Follow your company's procedure for calling in sick, whether it's calling human resources or your immediate supervisor. Notify them via both email and phone to ensure the message is received in a timely fashion.

         Offer to call in to important meetings: Workers often think that their responsibilities and obligations are so important that they aren't entitled to a well-deserved and needed break. Client meetings and high-profile calls that are scheduled far in advance are often legitimate reasons for workers to try to get into the office, even if they're feeling under the weather. However, if you're highly contagious, it might not be worth it. Participating in a meeting while sick can mean your productivity will be low, perhaps causing you to do more harm than good. If you don't think you can sit out of an important meeting, offer to join by phone instead. 

         Stay in contact: If you're worried about missing deadlines or getting piled under tons of work when you're back, take steps to avoid it. Notify your team every day that you're out, and communicate your list of urgent to-dos. If anything needs immediate attention, hopefully that list should allow for speedy delegation and completion. Remember -- it's the sick employee's obligation to ensure that all daily responsibilities and tasks are completed when taking a sick day. It isn't the manager's responsibility to delegate tasks, nor is it a colleague's responsibility to figure it out in a sick employee's absence.

 

 

AFFORDABLE CARE ACT NOTICE REQUIREMENT DELAYED

When do employers have to comply with the new notice requirements in section 18B of the Fair Labor Standards Act (FLSA)?

Section 18B of the FLSA provides that employer compliance with the notice requirements of that section must be carried out "in accordance with regulations promulgated by the Secretary of Labor." Accordingly, it is the view of the Department of Labor (DOL) that, until such regulations are issued and become applicable, employers are not required to comply with FLSA section 18B.

The DOL has concluded that the notice requirement under section 18B of the FLSA section will not take effect on March 1, 2013 for several reasons. First, this notice should be coordinated with Health and Human Service's (HHS) educational efforts and Internal Revenue Service (IRS) guidance on minimum value. Second, the DOL, HHS and the Treasury (collectively, the Departments) are committed to a smooth implementation process including providing employers with sufficient time to comply and selecting an applicability date that ensures that employees receive the information at a meaningful time. The DOL expects that the timing for distribution of notices will be the late summer or fall of 2013, which will coordinate with the open enrollment period for Exchanges.

The DOL is considering providing model, generic language that could be used to satisfy the notice requirement. As a compliance alternative, the DOL is also considering allowing employers to satisfy the notice requirement by providing employees with information using the employer coverage template as discussed in the preamble to the Proposed Rule on Medicaid, Children's Health Insurance Programs, and Exchanges: Essential Health Benefits in Alternative Benefit Plans, Eligibility Notices, Fair Hearing and Appeal Processes for Medicaid and Exchange Eligibility Appeals and Other Provisions Related to Eligibility and Enrollment for Exchanges, Medicaid and CHIP, and Medicaid Premiums and Cost Sharing (78 FR 4594, at 4641), which will be available for download at the Exchange web site as part of the streamlined application that will be used by the Exchange, Medicaid, and CHIP. Future guidance on complying with the notice requirement under section 18B of the FLSA is expected to provide flexibility and adequate time to comply.

 


 
 

 Retirement Plan Limits

All limits are based on the calendar year. 

 

 

 

 

 

2013

2012

2011

Maximum Annual Defined Benefit

$205,000

$200,000

$195,000

Maximum DC Annual Addition ($$)

$51,000

$50,000

$49,000

Maximum 401(k) Deferrals

$17,500

$17,000

$16,500

Older EE Catch-Up Contribution

$5,500

$5,500

$5,500

Maximum Plan Compensation

$255,000

$250,000

$245,000

Highly Compensated Threshold

$115,000

$115,000

$110,000

Key Employee in a Top-Heavy Plan

$165,000

$165,000

$160,000

SSA Social Security Wage Base

$113,700

$110,100

$106,800

PBGC Maximum Monthly Guarantee*

$4,789.77

$4,653.41

$4,500

PBGC Maximum Annual Guarantee*

$57,477.24

$55,840.92

$54,000

Maximum DC Annual Addition (%)

100%

100%

100%

Social Security Tax - Employee

Social Security Tax - Employer

6.2%

6.2%

4.2%

6.2%

4.2%

6.2%

Medicare Tax

1.45%

1.45%

1.45%

DC Plan Deduction Limit

25%

25%

25%

Definition of Compensation for DC

Plan Deduction Limit

Includes Deferrals

*Life Annuity at age 65 

 

 

 


 
about MFYCO ...

  • Michael F. Yates & Company, Inc. can help you with a variety of services ranging from retirement plans to providing results-oriented survey instruments, training and development programs for your employees. Our products and services are intended to help you maximize the effectiveness of your Human Resources function.
     
  • These products and services incorporate our years of experience so that you receive rapid results and exceptional value. From onsite consulting, to strategic business integration, to Web enablement, we understand how Human Resources can be applied to solve your problems and achieve your goals. As a result, we can help you get the most out of your investment and turn your most precious resource into a competitive advantage.
     
  • We offer Consulting, Retirement Planning, Pension and 401(K) both qualified and non qualified Plans, Welfare Plans, Communications, Computer Systems, Executive Plans, Compensation, Mergers, Acquisitions, Divestitures and Other Services. 
     
    We offer a true and honest, Client Partnership.
     

Take the Michael F. Yates & Company, Inc. challenge!

Call us today ... 908-689-4200 



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 How to Track Government Recovery Spending

 

"The Board shall establish and maintain...a user-friendly, public-facing website to foster greater accountability and transparency in the use of covered funds. The website...shall be a portal or gateway to key information relating to the Act and provide connections to other government websites with related information." 

 
 
Michael F. Yates & Company, Inc.
_________________

 
101 Belvidere Avenue
P.O.Box 7
Washington, NJ 07882-0007 
 
908-689-4200

fax: 908-689-6300

 

 
Our staff and firm are proud
members
of the following professional organizations:

Society of Actuaries
 
American Society of Pension Professionals & Actuaries

Society for Human Resource Management
  
GAPS (Global Association Pension Services)

WorldatWork

 American Management Association

 

National Federation of Independent Business

Better Business Bureau

 

 


Terms of Use
COP

 


The site ("from the HR perspective" hence herein referred to as MFYCO.com) is made available by Michael F. Yates & Company Incorporated. All content, information and software provided on and through 'from the HR perspective' and MFYCO.com ("Content") may be used solely under the following terms and conditions ("Terms of Use").
YOUR USE OF THIS WEBSITE CONSTITUTES YOUR AGREEMENT TO BE BOUND BY THESE TERMS AND CONDITIONS. IF YOU DO NOT AGREE TO THESE TERMS, YOU SHOULD IMMEDIATELY DISCONTINUE YOUR USE OF THIS SITE.  

 
Mike's Best Friend 
 
"Human Resources  provides the leadership, supportive services, guiding principles, policies, structures and standards needed for a quality organization to survive in today's business environment."
 
 MFYCO PRIVACY POLICY

 
Michael F. Yates & Company, Inc. 
believes strongly in protecting the privacy of its users.


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