Tips For Year End Preparation

With Your 401(k) Plan

November 20, 2009

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

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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
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

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