RTSC
SURGENT McCOY's GUIDE TO DESIGNING AND ADMINISTERING THE NEW ROTH 401(k), TRADITIONAL 401(k), SIMPLE, AND CAFETERIA PLANS

Salary reduction plans are being created in record numbers across the country. Employers, consultants, and CPAs must understand the complexity compliance and administration issues. The purpose of this course is to focus on how to meet the IRS and Department of Labor standards and manage these plans effectively.

Major topics include:

• Features of §401(k) plans, hardship withdrawals, plan loans, compliance issues, matching contributions, and associated W-2 issues
• Nondiscrimination rules and §401(k) plans -- The new final regulations and the alternative SIMPLE-structured CODA
• SIMPLE plans -- Understanding how they work, managing eligibility, alternative structures for nondiscrimination, and more
• The deemed IRA - new regulations provide guidance
• The Roth contribution program - new for 2006
• Plan administration -- Developing employee education programs to maintain participation, using the payroll system for salary reductions, and IRS audit guidelines of §401(k) plans
• Remedial programs under EPCRS -- How to correct errors and mistakes in plan documents and operations without disqualification of the CODA or plan
• Accounting issues for plan contributions, income, gain, loss, withdrawals, and distributions
• Participant-directed accounts -- Reduction of fiduciary liability through ERISA §404(c) plans
• Loan programs -- The reduced prohibited transaction exposure to owner-employees, structure of plan loans to participants to avoid excise tax, operational issues including tax impact on the plan, its fiduciaries and the participants. Special problems associated with participant-directed plans
• Cafeteria plans -- Discussion of the kinds of benefits offered, IRS filing requirements, nondiscrimination rules, annual reporting, the new "liberal" use rule, and W-2 salary reduction issues
• Late-breaking tax legislation

Level of knowledge: Basic/Intermediate