BPP401k.com Newsletter
August 27, 2008

Small Businesses Successfully Use 401k to Finance Startup Costs - Summary: According to a recent survey by Guidant Financial Group, 95 percent of clients who used 401k small business financing to fund their startup or business purchase are still in business. Located at: 401khelpcenter.com. Click on headline for full article.

Why Small Businesses Fail to Offer 401ks - Summary: According to a recent survey of small business owners conducted by SurePayroll, encouraging employees to save for retirement is not a priority for small businesses. They find six main factors working against small business 401k savings programs. Located at: 401khelpcenter.com. Click on headline for full article.

How Financial Literacy and Trust in Financial Institutions Affect 401k Savings Behavior - Summary: Literacy, Trust, and 401k Savings Behavior focuses on the issues of financial literacy and trust—or the lack thereof—in financial institutions. This research paper represents the first attempt to examine how these issues affect 401k savings behavior. Located at: Vanguard. Click on headline for full article.

Target Date Funds: Does It Hit a Bull's-Eye Within Your Plan? - Summary: With several target date fund options out there, it is important to take several things into consideration when selecting the one that is right for a plan. Located at: NAGDCA (PDF File). Click on headline for full article.

Storm Clouds Ahead for 401k Plans? - Summary: A modest step toward rationalizing ERISA could accomplish something critical to the success of 401k plans—aligning the interests of employers and workers. What LaRue illustrates is how ERISA today turns employers and workers into adversaries. What is needed instead is employers to be on the side of workers when things go wrong, not to be caught in the middle. Located at: Urban Institute (PDF File). Click on headline for full article.

DOL Clarifies Invest. Advice Regulations - Summary: Two proposed regulations released Thursday from the Department of Labor include a model for advisers to satisfy the fee disclosure requirement for independent retirement account and 401k invest. advice. Located at: Plansponsor.com (free registration may be required). Click on headline for full article.

DOLs Proposed Invest. Advice Regulation - Summary: The DOL announced publication of two proposed rules under the Pension Protection Act to make invest. advice more accessible for millions of Americans in 401k type plans and individual retirement accounts. This document contains proposed regulations. Located at: U.S. Department of Labor (PDF File). Click on headline for full article.

DOLs Proposed Invest. Advice Class Exemption - Summary: The DOL announced publication of two proposed rules under the Pension Protection Act to make invest. advice more accessible for millions of Americans in 401k type plans and individual retirement accounts. This document contains proposed class exemption from certain prohibited transaction restrictions. Located at: U.S. Department of Labor (PDF File). Click on headline for full article.

IRS Enhances Voluntary Correction Program for Retirement Plans - Summary: This latest version of the Employee Plans Compliance Resolution Program (EPCRS) is effective January 1, 2009, though plan sponsors can elect to apply the new EPCRS as soon as September 2, 2008. This article covers changes and enhancements to the program. Located at: Sutherland Asbill & Brennan LLP (PDF File). Click on headline for full article.

Revenue Procedure 2008-50 Updates IRS's Employee Plans Compliance Resolution System - Summary: The revenue procedure contains many additions and clarifications; however, according to Joyce Kahn, Manager, IRS's Employee Plans Voluntary Compliance. Located at: IRS (PDF File). Click on headline for full article.

DOL Proposes Participant Disclosure Regulations for DC Plans - Summary: The DOL recently released proposed regulations intended to increase transparency of fees and expenses to participants in self-directed individual account plans. The proposed regulations are part of an ongoing DOL initiative to provide plans and plan participants with sufficient information to make informed investment decisions. Located at: Buck Consultants (PDF File). Click on headline for full article.

IRS Retirement News for Employers - Summary: The edition contains articles such as New Resource Helps Keep Your SEP Plan Compliant, Desk Side Chat with Monika Templeman - Responsibilities to Employees, Form 5307 Has Been Revised, SARSEP Plans Examination Trends, Have a HEART for Our Heroes, Things to Remember - 2007 Forms 5500/5500-EZ, ERPA Contract Awarded, DOL News, Fixing Common Plans Mistakes, and Participant Loans in 401k Plans. Located at: IRS (PDF File). Click on headline for full article.

ERISA Fiduciaries – Could I Really Go to Jail? - Summary: While it is hard to picture the term "criminal penalties" in conjunction with mundane things like SPDs, SARs, Form 5500 filings and other run-of-the-mill benefit plan documents, there is potential liability when fiduciaries fail in their duties under the plan. Located at: Aiken & Aiken Blog. Click on headline for full article.

The Shortfall of Using Pre-Approved Qualified Retirement Plan Documents - Summary: Employers adopting a pre-approved plan document, especially small employers that don't necessarily have any owners or employees that are experts in employee benefit issues, must realize what they are not receiving when they purchase a pre-approved plan, especially a Master & Prototype plan. Located at: BNAtax.com. Click on headline for full article.

Washington Update: Focus on Fees - Summary: With the clock winding down on the Bush administration, DOL regulators have been scrambling to complete work on comprehensive new fee disclosure rules for defined contribution plans. Democrats in Congress, meanwhile, continue to support legislation that would further expand disclosure but disagree on the best approach. It appears that with debates on a number of other issues likely to fill what's left of the legislative calendar in 2008, time is running out on any congressional activity this year on fees. Located at: Vanguard. Click on headline for full article.

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