On September 27, 2010, President Obama signed The Small Business Jobs and Credit Act of 2010 which primarily provides tax cuts and better access to credit for small businesses. It also introduced to participants of 401(k) and 403(b) plans the ability to convert existing non-Roth accounts into Roth accounts within the same plan.

In-plan conversions are only permitted in plans that 1) are such plans as referenced above, 2) already have a Roth account feature and 3) are amended to allow in-plan conversions. As an example, participants of a 401(k) plan that allows Roth accounts could convert their existing 401(k) pre-tax account to an after-tax Roth account within the same plan. The premature distribution tax is waived on such conversions, however, taxes must be paid on the amount converted in the year converted.

I am your constant companion. I am your greatest helper of heaviest burden. I will push you onward or drag you down to failure. I complete at your command. Half the things I do you might just as well turn over to me and I will be able to do them quickly and correctly.

I am easily managed –you must merely be firm with me. Show me exactly how you want something done and after a few lessons I will do it automatically. I am the servant of all great individuals and, alas, of all failures, as well. Those who are great, I have made great. Those who are failures, I have made failures.

I am not a machine, though I work with all the precision of a machine plus the intelligence of a human. You may run me for a profit or run me for ruin –it makes no difference to me.

Take me, train me, be firm with me, and I will place the world at your feet. Be easy with me and I will destroy you.

Who am I?

The answer is a HABIT!

After multiple delays and extensions, the Service Provider Fee Disclosure (408(b)(2)) Regulations are effective on or before April 1, 2012. The Participant Fee Disclosure (404(a)) Regulations are generally effective May 31, 2012 (60 days after the 408(b)(2)) Regulations. The Regulations are similar in that both of these cover all company-sponsored retirement plans with a purpose of disclosing Fees but different in that the Service Provider Fee Disclosure’s purpose is to disclose fees that various service providers charge in servicing the plan to the Plan Sponsor while the purpose of the Participant Fee Disclosure is to provide plan expenses, i.e. investment-related, to the participants.

Regarding the Service Provider Fee Disclosures, PENSIONS LTD would only need to prepare these Disclosures for those plans whose participants pay a pro-rata share of the administrative fees. If the business pays PENSIONS LTD directly, these new Disclosures are not applicable.

Regarding the Participant Fee Disclosures, PENSIONS LTD will be satisfying the requirements of this regulation by expanding the currently provided quarterly periodic benefit statements. We are required to prepare these statements for those plans that offer participants the right to (investment) direct their own accounts. The first Disclosure will be included in the first quarterly statement due by 05/15/12.

…to restate the plan and trust document. This is the IRS final deadline. The process of amending and restating the plan documentation in its entirety was last completed in 2004. It is required generally every six years. Every ‘open’ DB plan must be restated as the process updates the plans to legislation that has passed SINCE 2004. In other words, we are picking up from where we last left off. Frozen, inactive, even plans wanting to terminate or in the process of terminating are affected.