NEWSLETTERS
 Volume 3, Issue 1 .................... February 2002

Document Restatement Update

Most plan sponsors are aware that they have to restate their retirement plan for tax legislation enacted since 1994, collectively known as GUST.

Administrative Retirement Services, Inc. (ARS) has received IRS approval for our prototype plan documents. We are currently waiting for our software company to finalize the related documents, such as the summary plan description, before we begin sending out the restated documents. We anticipate receiving the software update in early March and sending out documents beginning in early April. Because of the number of plans we administer, we anticipate this process will take several months.

ARS will continue to use the Datair Volume Submitter Document (VSD) for cross tested plans. Datair has not received IRS approval on their VSD but anticipates receiving IRS approval on their VSD toward the end of the first quarter of 2002. Once Datair receives IRS approval, ARS will contact our clients who use the VSD and begin the process of restating those plans.

At the same time ARS restates plan documents, we will also be preparing plan amendments for the Economic Growth and Tax Relief Reconciliation Act passed in July of 2001 (EGTRRA).

These amendments include the following changes:

  • Plan loans for S-corporation shareholders allowed,
  • increasing contribution and compensation limits,
  • modifying top-heavy rules
  • changing required vesting schedules for employer matching contributions,
  • direct rollovers of plan distributions and rollovers from other types of plans allowed,
  • repeal of multiple use test,
  • suspension period following hardship distributions is decreased,
  • catch-up contributions allowed.

Please call ARS if you have any questions.

©2002 Administrative Retirement Services, Inc.


© Administrative Retirement Services, Inc.  2002
Published by Administrative Retirement Services, Inc., Copyright 2002 by Administrative Retirement Services, Inc. Reproduction in whole or in part is prohibited except by written permission. All rights are reserved.  Information has been obtained by Administrative Retirement Services, Inc. from sources believed to be reliable. However, because of the possibility of human or mechanical error by our sources, Administrative Retirement Services, Inc. or others, Administrative Retirement Services, Inc. does not guarantee the accuracy, adequacy, or completeness of any information and is not responsible for any errors or omissions or the result obtained from the use of such information.  Readers should seek specific advice before acting with regard to the subjects mentioned here.

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