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Ftwilliam.com 2011 Required Amendment Webinar

Conference Line . Due to overwhelming demand, PLEASE CALL THIS NUMBER(877) 312-4349 You will be asked for your first and last name and your email address. You will be put on hold until the presentation begins.. Agenda. What is addressed in the 2011 Required AmendmentWho is required to sign t

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Ftwilliam.com 2011 Required Amendment Webinar

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    1. ftwilliam.com 2011 Required Amendment Webinar Presented By: Christian Hofstadter & Holly Roussel-Godfrey

    2. Conference Line Due to overwhelming demand, PLEASE CALL THIS NUMBER (877) 312-4349 You will be asked for your first and last name and your email address. You will be put on hold until the presentation begins.

    3. Agenda What is addressed in the 2011 Required Amendment Who is required to sign the 2011 Required Amendment How to amend individual plans How to batch amend your plans Brief discussion regarding portal delivery

    4. Your presenters Christian Hofstadter – Writer/Analyst, ftwilliam.com Holly Roussel-Godfrey Application Specialist for all ftwilliam.com products.

    5. Questions during webinar If you have any questions during the webinar, please send them in using the Q&A option on your toolbar. We will gather questions and post them with answers on our website early next week. Please also feel free to email support@ftwilliam.com or call 800.596.0714

    6. 2011 Required Amendment ftwilliam.com

    7. What types of plans will be discussed? DC 457(b) DB/CB Welfare

    8. 401(k), PS, 403(b), ESOP/KSOP, MP & TB Plans What is included in the 2011 Required Amendment? Who is required to sign?

    9. What is included in the 2011 Required Amendment? 2009 Required Minimum Distribution Waiver In-Plan Roth Rollovers Recent Guidance Update for HEART Act Provisions Recent Guidance Update for Code Section 401(a)(35) Diversification Rights Provisions

    10. 2009 Required Minimum Distribution Waiver The Worker, Retiree, and Employer Recovery Act of 2008 (WRERA) added provisions to the tax code that provided DC plan participants with the option to waive their 2009 required minimum distributions. The IRS provided model amendments for the 2009 RMD waiver in Notice 2009-82.

    11. In-Plan Roth Rollovers The Small Business Jobs Act of 2010 (SBJA) added provisions to the tax code that provides plan sponsors with the option to allow plan participants to convert some or all of their plan accounts into Roth moneys.

    12. HEART Act & Code Section 401(a)(35) Diversification Rights The 2011 Required Amendment merely provides an update for more recent guidance published regarding the HEART Act and Code Section 401(a)(35). The ftwilliam.com 2009 PPA amendment provided HEART Act and Code Section 401(a)(35) language. Heart Act: The amendment clarifies that certain plan provisions shall be interpreted pursuant to IRS Notice 2010-15 and any subsequent guidance. The amendment applies to provisions governing: Benefits for survivors of participants who die while performing qualified military service; and Differential pay Code Section 401(a)(35): The amendment updates the plan’s provisions governing a participant’s right to divest publicly traded employer stock that is held by the plan for recent guidance.

    13. Who is required to sign the amendment? ESOPs/KSOPs, 403(b) plans & other individually designed plans Prototype/Volume Submitter plans that are on ftwilliam.com’s document Prototype/Volume Submitter plans that are NOT on ftwilliam.com’s document

    14. Who is required to sign the amendment for ESOPs/KSOPs, 403(b) plans and other individually designed plans? Each sponsor of an ESOP/KSOP, 403(b) plan, or other individually designed plan must sign the amendment

    15. Who is required to sign the amendment for Prototype/Volume Submitter Plans? If a plan is on ftwilliam.com’s document, and:

    16. Who is required to sign the amendment for Prototype/Volume Submitter Plans? If a plan is on ftwilliam.com’s document, and:

    17. Who is required to sign the amendment for Prototype/Volume Submitter Plans? If a plan is NOT on ftwilliam.com’s document, and:

    18. Who is required to sign the amendment for Prototype/Volume Submitter Plans? If a plan is NOT on ftwilliam.com’s document, and:

    19. Defaults Selected By ftwilliam.com 2009 RMD Waiver: RMDs continued to be distributed in 2009 (participants had the option to stop the distributions) In-Plan Roth Rollovers: In-Plan Roth rollovers are NOT allowed

    20. What if I adopted the ftwilliam.com 2009 PPA amendment? The ftwilliam.com 2009 PPA amendment included language that addressed the 2009 RMD waivers, the HEART Act and Section 401(a)(35) Diversification Rights. 2009 RMD Waivers: The 2009 PPA amendment was drafted prior to the IRS release of its 2009 RMD waiver model language. The 2011 Required Amendment includes the IRS model language. In deciding whether to adopt the 2011 Required Amendment, keep in mind that IRS auditors may look for the model language in subsequent audits. HEART Act and Section 401(a)(35): The 2011 Required Amendment merely provides an update for more recent guidance on the HEART Act and Section 401(a)(35) provisions that were included in the 2009 PPA amendment. In other words, even if the ftwilliam.com 2009 PPA amendment was adopted, you still may want to amend just to be safe.

    21. What if I have already adopted a similar amendment created by another vendor? 2009 RMD Waiver: Consider comparing ftwilliam.com’s RMD waiver language to the other vendor’s amendment. Our 2011 Required Amendment language tracks the IRS model language in Notice 2009-82 In-Plan Roth Rollover: Check other vendor’s amendment for in-plan Roth rollover language, if applicable HEART Act & Code Section 401(a)(35) Diversification Rights: Check other vendor’s amendment for applicable language

    22. In-Plan Roth Rollovers: 411(d)(6) Anti-Cutback Issues Notice 2010-84 provides that a participant who had a distribution right prior to an in-plan Roth rollover cannot have that right eliminated due to the fact that he or she elects an in-plan Roth rollover EXAMPLE: A plan currently allows for in-service distributions of profit sharing contributions after five years of service with the employer. The plan sponsor would like to amend the plan to include in-plan Roth rollovers. As part of the addition of the in-plan Roth rollover feature, the plan sponsor also amends the plan to restrict any in-service distributions from being made from the plan’s in-plan Roth rollover account, including any funds that are rolled over from the plan’s profit sharing accounts.

    23. In-Plan Roth Rollovers: 411(d)(6) Anti-Cutback Issues EXAMPLE CONTINUED: Joe has been employed by the plan sponsor for 10 years, and decides to roll his profit sharing account into the plan’s new in-plan Roth rollover account. Prior to the Roth conversion, Joe would have been able to take an in-service distribution of his profit sharing account. Following the Roth conversion, his right to receive a distribution of those amounts ceases to exist. The amendment, therefore, would violate Code section 411(d)(6).

    24. 457(b) Plans

    25. No 2011 Amendment 2009 RMD Waiver: Only applies to governmental 457(b) plans Amendment must be adopted by last day of first plan year beginning on or after January 1, 2012 In-Plan Roth Rollovers: Also only applies to governmental 457(b) plans Amendment to be provided in the future

    26. Defined Benefit and Cash Balance Plans What is in the 2011 Required Amendment? Who is required to sign?

    27. What will be included in the 2011 Required Amendment? Traditional Defined Benefit and Cash Balance Plans: Clarification that prohibited payments under Code section 436 do not include mandatory cash outs paid to participants Transition rules for the calculation of the adjusted funding target attainment percentage, as provided under the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010 Cash Balance Plans Only: Final regulations governing Cash Balance plans

    28. Who is required to sign the amendment? CB plans Volume Submitter DB plans that are on ftwilliam.com’s document Volume Submitter DB plans that are NOT on ftwilliam.com’s document

    29. Who is required to sign the amendment for CB plans? Each sponsor of a CB plan must sign the amendment.

    30. Who is required to sign the amendment for Volume Submitter DB Plans? If a plan is on ftwilliam.com’s document, and:

    31. Who is required to sign the amendment for Volume Submitter DB Plans? If a plan is on ftwilliam.com’s document, and:

    32. Who is required to sign the amendment for Volume Submitter DB Plans? If a plan is NOT on ftwilliam.com’s document, and:

    33. Who is required to sign the amendment for Volume Submitter DB Plans? If a plan is NOT on ftwilliam.com’s document, and:

    34. Will the 2011 Required Amendment automatically bring a Cash Balance plan’s interest crediting rate into compliance with the final regulations? No. If a CB plan’s interest crediting rate does not currently comply with the final regulations, then the plan must be amended by updating the applicable adoption agreement or plan document.

    35. How can I look up a CB plan’s interest crediting rate on ftwilliam.com? After you have logged into www.ftwilliam.com, select “Admin Menu” in the top toolbar On the Administrative Menu screen select “Download all plan information by checklist” You will then see the following screen:

    36.

    37. How can I look up a Cash Balance plan’s interest crediting rate on ftwilliam.com? Click on the applicable Cash Balance selection An Excel file will then open Each Cash Balance plan’s interest crediting rate can be found under the “CashBalanceIntCreditRate” column (column EF for most clients)

    38. What if a plan is on a GUST DB or Cycle D Cash Balance plan document? The 2011 Required Amendment is the last amendment ftwilliam.com will be issuing for those types of documents Amendments to plans on GUST DB or Cycle D CB documents must be signed by individual plan sponsors. Those document types are identified on the ftwilliam.com batch grid as GUST under “Checklist Version”. They are also identified on the Edit/Print Menu with the following alert: “Caution - Traditional DB GUST and Cash Balance Cycle D documents are not maintained after 12/31/2010”

    39. Welfare Plans What is in the 2011 Required Amendment? Who is required to sign?

    40. What will be included in the 2011 Required Amendment? The amendment will make minor modifications to provisions relating to appeals procedures in ftwilliam.com’s HRA, Cafeteria and Wrap plan documents

    41. Are all HRA, Cafeteria and Wrap plans required to adopt this amendment? Technically, not all of them. The changes only apply to plans that are subject to HIPAA Portability and are not grandfathered. However, we strongly recommend that the amendment be adopted by all HRA, Cafeteria and Wrap plans that are on ftwilliam.com’s documents.

    42. Are Premium Only Plans required to adopt this amendment? No. POPs are not subject to HIPAA Portability, and therefore do not need to be amended.

    43. Who is required to sign the amendment? As noted above, it is advisable that the 2011 Required Amendment be adopted for all HRA, Cafeteria and Wrap plans. The amendment should be adopted by individual plan sponsors.

    44. Thank you for attending Don’t hesitate to contact us with any questions. HAVE A WONDERFUL DAY!

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