tips for year end preparation with your 401(k) plan

November 20, 2009

Tips For Year End PreparationWith Your 401(k) Plan

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Your Presenters

Linda Lauer – Thompson Dunavant Employee Benefit Plan Services

Jeff Barnes – Barnes Retirement Plan Specialists, Inc.

John Crews – Burleigh Consulting Group

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You May Be A Fiduciary If You…

Have implementation authority to adopt, amend, merge, freeze, or terminate a plan

Have decision-making authority in the selection and retention of plan fiduciaries

Give investment advice with respect to plan assets for compensation

Make discretionary decisions under the plan such as whether a hardship withdrawal may be made, etc.

Select plan providers – Investment platforms, record-keepers, TPAs, brokers, etc.

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Today’s Focus

December 31st deadlines for Plan Document changes Maximizing deferrals for the highly compensated

Employee notifications and disclosure deadlines

What to expect in 2010

More efficient enrollment processes

Annual Plan Reviews

Document Changes

Pension Protection Act of 2006

EGTRRA

Amendments (ie. Safe Harbor Plans)

New plan feature

Eliminating Safe Harbor

ADP/ACP Testing

Top Heavy Issues

Maximizing Deferrals

Traditional 401(k) Plans

Safe Harbor Plans

How to help the business owner (partnerships/sole proprietors)

Year End Employee Notices

Annual Automatic Contribution Notice

Safe Harbor Notice

QDIA Notice

Company Stock Diversification Notification

Required Minimum Distributions

What to expect in 2010

Plan Limits

Schedule C Changes

5500 changes – Electronic Filing- effective with 2009 Form 5500 due July 31, 2010 (October 15, 2010)

Plan Limits

Plan limits for 2010 – apply to 401(k) and 403(b) Plans

No changes – same as 2009

$16,500 for 401(k) deferrals

$5,500 for catch up contributions

Plan Doc governs limits. Check maximum percentage as allowed by your plan document.

Also, applies to all 401(k) Plans.

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Schedule C Changes

Direct and indirect compensation

Includes: fees or expense reimbursement payments charged to investment funds

Investment fund examples include:

Mutual funds

Common/collective trust funds

Pooled separate accounts

Separately managed investment accounts

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Schedule C Changes

Fund brokerage commissions (including 12b-1 fees)

Fees related to the administration of the plan such as record keeping fees

Fees not reportable include ordinary operating expenses such as attorneys fees, accountants fees, printing fees, etc.

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Enrollment Efficiency

Order new booklets now (if you haven’t already)

Consider ACA

Utilize tools available from service providers

On-line enrollments

Video/Webinars

Establish procedures for processing and filing of enrollment & beneficiary forms

Enrollment Efficiency

Consider independent enrollment providers

Consider surveys

Document

Pay attention to the process looking for ways to improve efficiency and education to employees

Annual Review

Meeting minutes reviewed

Benchmarks

Participation rates compared to previous plan year

Deferral rates compared to previous plan year

Overall plan performance to benchmarks

Investment Review

Plan design discussion

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Closing

If you are interested in receiving a copy of the presentation, please visit:

www.barnesretirement.com

Securities and investment advisory services offered through Financial Telesis, Inc.

Barnes Retirement Plan Specialists, Inc. and Financial Telesis, Inc. are not affiliated