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Topic: 401(k) plans

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	401(k) - Wikipedia, the free encyclopedia
		A 401(k) plan is technically a type of profit sharing plan (under the IRS's definition) with a qualified Cash or Deferred Arrangement and differs from a traditional pension plan or defined benefit plan because contributions are voluntary and neither benefits nor contributions are defined.
		In addition, 401(k) plans are tax-qualified plans covered by the Employee Retirement Income Security Act of 1974 (ERISA), so assets held by the plans are generally protected from creditors of the account holder, which in the past was generally not true for IRA plans.
		When an employee leaves a job, the 401(k) account generally stays active for the rest of his or her life, though the accounts must begin to be drawn out beginning the April 1st of the calendar after the calendar year of attainment of age 70½ (except that under SBJPA 1996, those still employed can defer).
	en.wikipedia.org /wiki/401(k) (2803 words)

	FCIC: 401(k) Plans
		A 401(k) plan is generally funded with your before-tax salary contributions and, oftentimes, matching contributions from your employer.
		Your own contributions to your 401(k) plan are automatically yours to keep, but you may have to be "vested" before you are entitled to your employer’s matching contributions.
		Under some plans, you may be required to commence distributions at age 70½ while you are still working.
	www.pueblo.gsa.gov /cic_text/money/401k/401k.htm (3755 words)

	IRC 401(k) Plans
		IRC 401(k) plans are the most popular type of retirement plan used today.
		Beginning in 2006, a 401(k) or 403(b) plan (but not a SARSEP or SIMPLE IRA plan) may permit an employee to irrevocably designate some or all of his or her elective contributions under the plan as designated Roth contributions.
		A 401(k) plan has a life cycle with four distinct stages through which the plan evolves.
	www.irs.gov /retirement/article/0,,id=120298,00.html (216 words)

	401(k) Plans For Small Businesses - Supplement
		Your contributions to a 401(k) plan are generally deductible by you and tax free to participating employees until distributed from the plan.
		He or she must notify the plan by April 15, 2004 (or an earlier date specified in the plan), of the amount to be paid from each plan.
		In the case of a 401(k) plan that is part of a profit-sharing plan, the employee reaches age 59½ or suffers financial hardship.
	www.dol.gov /ebsa/publications/401kplans-supplement.html (2541 words)

	401(k) Plans For Small Businesses
		This type of 401(k) plan is available to employers with 100 or fewer employees who received at least $5000 in compensation from the employer for the preceding calendar year.
		Traditional 401(k) plans are subject to annual testing to assure that the amount of contributions made on behalf of rank-and-file employees is proportional to contributions made on behalf of owners and managers.
		Plan disclosure documents keep participants informed about the basics of plan operation, alert them to changes in the plan’s structure and operations, and provide them a chance to make decisions and take timely action with respect to their accounts.
	www.dol.gov /ebsa/publications/401kplans.html (4356 words)

	Invest FAQ: Retirement Plans: 401(k)
		A 401(k) plan is a retirement savings plan that is funded by employee contributions and (often) matching contributions from the employer.
		Well, when the 401(k) rules were being formulated, the government was afraid that executives might make the 401(k) plan at their company very advantageous to themselves, but without allowing the rank-and-file employees those same benefits.
		Depending on the plan, a participant may be able to draw funds without penalty at or after age 59 1/2 regardless of whether he or she has separated from service (i.e., the participant might still be working; check with the plan administrator to be sure).
	www.invest-faq.com /articles/ret-plan-401k.html (3083 words)

	401(k) plans and employee stock ownership plans (ESOPs)
		401(k) plans are both the fastest growing employee benefit plan and the fastest growing vehicle for broad employee ownership.
		In the 401(k) approach, to make sure everyone gets at least some contribution, a plan can be structured so that all employees meeting a certain minimal requirement get a minimum allocation (such as one or two percent of pay in shares).
		However the plan is structured, companies need to decide whether to use the repayment amount of the contributions or the value of the stock allocations to test for meeting discrimination rules.
	www.nceo.org /library/401k.html (1876 words)

	July - 401(k) Plans
		401(k) plans are a disciplined and convenient way to help employees save, allowing them to plan for a secure retirement.
		Before adopting a 401(k) plan, it is important to consider the impact of the top heavy rules.
		While 401(k) plans offer many important benefits to employers and participants, they are a long-term commitment that should be taken seriously.
	www.texaspension.com /401kplans.aspx (339 words)

	401(K) Plans
		ERISA money purchase plan, or a rural cooperative plan shall not be considered as not satisfying the requirements of subsection (a) merely because the plan includes a qualified cash or deferred arrangement.
		If 2 or more plans which include cash or deferred arrangements are considered as 1 plan for purposes of section 401(a)(4) or 410(b), the cash or deferred arrangements included in such plans shall be treated as 1 arrangement for purposes of this subparagraph.
		This clause shall not apply to a rural cooperative plan or to a plan of an employer described in clause (iii).
	www.erieri.co.uk /freedata/HRCodes/401(K)_PLANS.htm (2631 words)

	401(k) Loans: Was Polonius Right?
		For many 401(k) plan participants, especially younger people or lower-paid workers, knowing that the 401(k) money is available through a guaranteed and speedy loan is a powerful incentive to enroll in the plan.
		Should the employee default on the loan, the plan sponsor must monitor the cure period for the loan; and if the cure period elapses without payment, the plan sponsor must treat the loan as a taxable distribution, including issuing the appropriate tax form and imposing the early withdrawal penalty of 10 percent.
		Finally, if the plan participant quits or loses his or her job without repaying the loan, the loan will be treated as taxable income and as a distribution from the plan.
	benefitslink.com /articles/loans001202.html (1403 words)

	401(k) Plans
		A 401(k) plan (named after a section of the tax code) is an employer plan established by your employer that lets you set aside a percentage of your pay before taxes are taken out.
		A 401(k) plan is generally funded with your before-tax salary contributions and often matching contributions from your employer.
		Similar to 401(k) plans and also named after a provision in the tax code, a 403(b) plan is a retirement savings plan for certain employees of public schools and certain tax-exempt organizations.
	www.electricianeducation.com /personal/401(k)_plans.htm (3587 words)

	Howstuffworks "How 401(k) Plans Work"
		Although retirement plans may be the farthest thing from your mind, think about how much of a difference 10 years can make in the investing world.
		You'll find out why the 401(k) plan is one of the best ways to save for retirement, why your employer offers it, and how you can make the most of your account.
		401(k) plans are part of a family of retirement plans known as defined contribution plans.
	money.howstuffworks.com /401k.htm (485 words)

	401(k) plans limit company stock (Site not responding. Last check: 2007-10-08)
		Coca-Cola Co., which uses stock to match employee contributions to its 401(k), is being sued by workers claiming the company should have taken steps to eliminate or reduce the amount of company stock in the plan.
		Coke's 401(k) plan held assets of $1.33 billion at the end of 2005, with 57 percent of that money in Coke stock, a company spokeswoman says.
		Coke also has a traditional pension plan with $1.9 billion in assets at the end of last year, of which only 3.4 percent of the money was in Coke stock, she says.
	www.post-gazette.com /pg/06151/694539-28.stm (1159 words)

	July - Safe Harbor 401(k) Plans
		Unlike traditional 401(k) plans, the employer contributions are not discretionary.
		Safe Harbor 401(k) Plans are required to have a minimum plan year of at least 3 months.
		This means new plans with a calendar year end must be established before October 1st to be effective for that plan year.
	www.texaspension.com /401ksafeharbor.aspx (542 words)

	Qualified plans/401(k) (Site not responding. Last check: 2007-10-08)
		Your employees enjoy full access to a secure and personalized 401(k) website where they can manage every aspect of their 401(k) plan—with a simple click of a mouse.
		Generally, qualified plans are plans that qualify under Section 400 of the IRS Code, and therefore enjoy significant tax advantages for both you and your employees.
		Plan assets are secure—they are placed in trust beyond the reach of creditors, providing a high level of security for employees.
	www.associatedfinancialgroup.com /retirementplans/401kplans.asp (307 words)

	401(k) Salary Reduction Plan - ICMA-RC (Site not responding. Last check: 2007-10-08)
		You have the flexibility to consolidate your savings in another public sector employer’s 401 plan, a tax-sheltered 403(b) annuity plan, a 457 plan, or a Traditional IRA if you change employers.
		In most 401(k) Plans you may stop and/or restart your contributions at any time.
		The extent to which a participant has a right to contributions and benefits derived from plan contributions made by the employer.
	www.icmarc.org /xp/rc/products/401k (360 words)

	Small Business 401(k) Plans
		Online 401(k) plans efficiently hold down the administrative costs but still provide all the features of big 401(k) plans.
		Two flexible 401(k) Plans: Choose the type of 401(k) plan that’s right for your company, then select from a wide variety of quality investment funds managed by some of the country’s highly regarded mutual fund families including Janus, OppenheimerFunds, Pioneer and more.
		GoldK™’s 401(k) specialists are on hand to assist you all the way from plan setup through ongoing plan management.
	www.nebs.com /nebsEcat/products/categories/plans_401k.jsp (947 words)

	Another Retirement Savings Option: Roth 401(k) Plan
		Employers now have a new retirement savings plan to offer their employees--the Roth 401(k) plan, which combines features of Roth IRAs and traditional 401(k) plans.
		The plan, commonly referred to as a "Roth 401(k)," is a hybrid that combines features of Roth IRA and traditional 401(k) plans but differs in important aspects.
		When the NCS encounters the new Roth 401(k) plans, they will be included as defined contribution plans in the NCS benefits incidence and provisions estimates.
	www.bls.gov /opub/cwc/cm20060221ar01p1.htm (440 words)

	401(k) Plans Manual Authors - Employee Benefits Institute of America Inc. - Manuals - 401(k) - Authors
		Harris represents employers, association plans, insurers, and service providers in connection with the design, structure, and interpretation of retirement, welfare benefit plans, and deferred compensation arrangements.
		Van Bogaert is a partner in the Boardman Law Firm LLP of Madison, Wisconsin, where she specializes in all aspects of the design and administration of 401(k) plans, other employee benefit plans, and executive compensation arrangements.
		Pett is a partner in the Atlanta office of Alston & Bird LLP, where he specializes in assisting clients identify and correct 401(k) plan compliance errors.
	www.ebia.com /Manuals/401k/Authors (468 words)

	The Seven Deadly Sins of 401(k) Plans
		In 1990, defined-benefit plans, or pension plans that companies funded, represented 69% of assets of employer-sponsored retirement plans, compared with 31% for defined-contribution plans such as 401(k)s.
		By 2012, 401(k)s and defined-contribution plans are expected to jump to 59%, with pension plans falling to 41%, according to research and consulting firm Greenwich Associates.
		Of course, not all 401(k) plans are a mess -- some companies' plans have that serendipitous combination of informed employers who offer comprehensive investing plans via cost-conscious consultants, and asset-management firms that balance their interests with those of their customers.
	www.thestreet.com /funds/stephenschurr/10110196.html (554 words)

	Nebraska Sees Red Over Its 401(k) Plans
		People enrolled in the defined-benefit plan wouldn't actually get to take home that 11% return because their benefits would be based on their salaries and years of service.
		In fact, they were better prepared to handle their responsibilities than the average 401(k) investor, who can count on little help from his employer.
		It's not yet clear whether the Nebraska decision is a harbinger of a deeper backlash against 401(k) plans.
	www.thestreet.com /funds/belowradar/10021041.html (920 words)

	Section 401(k) Plans and Employee Ownership
		In recent years, company stock has become a popular investment choice in 401(k) plans; as a result, the 401(k) plan has become one of the main vehicles of employee ownership in the U.S. However, in the wake of Enron’s collapse, the use of company stock in 401(k) plans has become controversial.
		Part 1 of IB 94-2 expands upon the DOL's often-made assertion that the fiduciary act of managing plan assets that consist of shares of stock includes the act of voting the proxies that are appurtenant to such shares.
		IB 94-2 makes it quite clear that some plan fiduciary is ultimately responsible for proxy voting, and that the "buck" does, indeed, stop on the desk of the plan's trustee(s), the plan's "named fiduciary," or an investment manager.
	www.nceo.org /pubs/401k.html (864 words)

	USATODAY.com - Companies, lawmakers consider 401(k) safeguards (Site not responding. Last check: 2007-10-08)
		As the White House steps up scrutiny of 401(k) plans, lawmakers are threatening legislation to curb company stock holdings and employers are reviewing their plans.
		Responding to the huge retirement plan losses suffered by workers at bankrupt energy giant Enron, the Senate is already considering a bill that would, among other things, limit employees to investing no more than 20% in any one stock in a 401(k) plan.
		In Massachusetts, the secretary of the commonwealth has introduced a bill that would make it unlawful to force workers to hold onto company stock in a 401(k) plan.
	www.usatoday.com /money/finance/2002-01-11-retirement-plans.htm (376 words)

	Introduction To SIMPLE 401(k) Plans
		Furthermore, employer contributions to an employee's SIMPLE 401(k) account are limited to 3% of the employee's compensation, while for the traditional 401(k), the employer may contribute up to 25% of the employee's compensation.
		Therefore, an employee's total contribution to a SIMPLE 401(k) plan for 2006 can be as much as $16,600 (salary deferral of $10,000 + 3% contribution of maximum salary of $220,000) + catch-up contributions, while contributions to a traditional 401(k) plan can be as much as $44,000 + catch-up contributions.
		By contrast, provided certain requirements are met, an employer who establishes a traditional 401(k) plan may choose to establish a SEP, profit-sharing or other defined-contribution plan, maintain both plans concurrently and allow eligible employees to participate in both plans.
	www.investopedia.com /articles/retirement/04/052604.asp (1106 words)

	401(k) plans face scrutiny
		The investigation centers on trading by participants in retirement plans for the boilermakers union Local 5 in New York, union electricians in New York and Fluor Hanford, which is cleaning up the nuclear waste site in Washington state, the Globe says.
		A decade ago, 401(k) plans offered three or four funds, and employees typically could move money between funds no more than once a quarter.
		Headley does not think market timing is widespread in 401(k) plans, but it does exist, to the detriment of long-term shareholders.
	www.sfgate.com /cgi-bin/article.cgi?f=/c/a/2003/10/23/BUGKE2H7NQ1.DTL (1006 words)

	401khelpcenter.com - 401(k) Plan Sponsors, Small Business, Employee Retirement Plans
		It is therefore vital that plan sponsors recognize the potentially significant limitations of relying too heavily upon the RFP as a decision tool.
		Financial Education Increases Productivity and Plan Participation: Financially distressed employees are more likely to not be contributing to their retirement plan or not contributing enough to assure a financially successful retirement.
		Many plan sponsors want to know how their 401k plan stacks up to the typical or average plan.
	www.401khelpcenter.com (933 words)

	Amazon.com: 401(K) Plans (Dearborn Continuing Education): Books: Dearborn Financial Publishing,Dearborn (Site not responding. Last check: 2007-10-08)
		Covers how a 401(k) plan works, how to tailor a plan for differing needs and requirements, what to look for in marketing a 401(k) plan, administration, and installation.
		In a field as "ever-changing" as retirement plan management and pension administration, it takes a special set of resources to keep up with these changes.
		Dearborn is excellent, simply top notch with their securities and insurance publications; but with defined contribution and pension plans, unfortunately, their data is lacking, too basic, and out of date.
	www.amazon.com /401-Plans-Dearborn-Continuing-Education/dp/0793134382 (1054 words)

	ETF-Only 401(k) Plans (ETF Focus) \| SmartMoney.com
		Mutual funds, especially index-based funds, dominate 401(k) plans because they epitomize the passive buy-and-hold philosophy most workers saving for retirement follow.
		"The retirement law says if a plan sponsor provides participants with an education they have met the requirements, and a lot of plan sponsors think they have discharged their fiduciary responsibilities by offering a full menu of options [without education]," says Ted Theodore, president of Avatar.
		Fees for the Avatar and XTF plans range from 0.55% to 1.05%, compared with Invest n Retire, whose plans range from 0.80% to 1.10%.
	www.smartmoney.com /etffocus/index.cfm?story=20060531 (1253 words)

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