Volume 5, Spring 2008 

A Look Inside 

What to Do if Your Plan is Selected 

for Examination gives helpful advice 

from Monika Templeman, EP Exam 

Director...more on page 2 

ERPA, a new category of practitioner 

to practice before the IRS, is picking up 

speed...more on page 4 

Age 70 1⁄2 questions are answered in 

“We’re Glad You Asked”...more on 

page 4 

Final 403(b) Regulations require a 

written plan document for the 

403(b)...more on page 5 

Hardship Distributions from a 401(k) 

Plan must be made in accordance 

with the plan document in “Fixing 

Common Plan Mistakes”...more on 

page 8 

Also in this Issue

 New on the Web Page 2

 Product Profile Page 5 

This Way to the Forums Page 6

 Recent Guidance Page 6

 DOL News Page 7

 Mark Your Calendar Page 10 

Timing is Everything Page 11 

 Retirement News

 for Employers
 

Information for Sponsors of Retirement Plans 

Internal Revenue Service Tax Exempt and Government Entities 

EP Connections: Interview with Joyce Kahn 

New Law... Help for the Small Employer 

Joyce Kahn, Manager of EP Voluntary Compliance, recently sat down with Retirement 

News for Employers to discuss upcoming activities relating to the IRS Correction 

Programs in Employee Plans. 

What did the Pension Protection Act of 2006 (PPA) provide with respect to the IRS 

Correction Programs (i.e., Employee Plans Compliance Resolution System 

(EPCRS))? 

§1101(b) of the PPA granted the Secretary of the Treasury full authority to establish and 

implement the EPCRS and provided that the Secretary will continue to update and 

improve EPCRS, giving special attention to: 

(1) Increasing the awareness and knowledge of small employers concerning the 

availability and use of EPCRS; 

(2) Taking into account special concerns and circumstances that small employers 

face with respect to compliance and correction of compliance failures; 

(3) Extending the duration of the self-correction period under the
 

Self-Correction Program for significant compliance failures;
 

(4) Expanding the availability to correct insignificant compliance failures under the 

Self-Correction Program during audit; and 

(5) Assuring that any tax, penalty, or sanction that is imposed because of a 

compliance failure is not excessive and bears a reasonable relationship to the 

nature, extent, and severity of the failure. 

How will Employee Plans increase the awareness of EPCRS? 

We have developed the “Retirement Plan Pitfalls” workshop, encouraging small business 

practitioners to use online IRS “Fix-It Guides” to help keep their clients out of trouble. 

They can do so by helping them find, fix, and avoid common retirement plan mistakes. 

The “Fix-It Guides” relate to different plan types so an employer can go to his/her plan 

type and find the most common errors that apply to that kind of plan. The 401(k) Fix-It 

Guide is currently online and we will be posting additional guides for SIMPLE IRA 

plans, SEPs, 403(b) plans, and SARSEPs. Employee Plans piloted the “Retirement Plan
Spring 2008 Retirement News for Employers 

New on the Web 

Here are the latest postings to the Retirement 

Plans Community web page: 

•	 Materials from the first 

Governmental Plans Roundtable 

held April 22, 2008, are now 

available on our new 

Governmental Plans web page. 

We will continue to update this 

material to better serve the 

governmental plan community. 

•	 We now have a consolidated 

Fix-It Guides web page to hold 

all of our guides. These guides 

provide tips on how to find, fix, 

and avoid common mistakes in 

retirement plans. Currently, the 

“401(k) Fix-It Guide” is available. 

SIMPLE IRA and SEP guides are 

coming soon. 

•	 The Staggered Remedial 

Amendment Period Revenue 

Procedure web page has been 

updated for recent guidance per 

Announcement 2008-23 and 

Notice 2007-94. This web page 

also provides a list of recent 

guidance that may require interim 

or discretionary amendments. • 

Pitfalls” workshop last week at the AICPA National Conference on Employee 

Benefits and it was well received. We will also deliver this workshop at each of 

the IRS Nationwide Tax Forums this summer. The workshop will familiarize 

general tax practitioners with the legal requirements for retirement plans, 

emphasize the importance of proper plan maintenance, and present EP’s 

correction programs using a case study. 

Also, EP Voluntary Compliance is championing a product-based Customer 

Satisfaction Project involving external stakeholders. The project, coordinated 

with the Advisory Committee for Tax Exempt and Government Entities (ACT), 

is designed to focus on leveraging EPCRS. Our goal is to develop product-based 

tools to help employers and their practitioners better understand IRS’s 

correction programs and make their use easier. Look for our new products in 

future editions of the Retirement News for Employers. 

Are there any other actions involving EPCRS that will address the other 

items in §1101(b) of the PPA? 

We are working on updating the EPCRS revenue procedure which will address 

the other items. We expect the revenue procedure to be released by the end of 

June 2008.• 

Ms. Kahn joined the IRS in 1987 as a tax law specialist in the Qualifications Branch and 

later transferred to the Projects Branch. She became the Manager of the Voluntary 

Compliance Resolution Program in 1995 and the Manager of EP Voluntary Compliance in 

1999. Ms. Kahn is a graduate of the University of Florida and received her Juris Doctorate 

from the University of South Carolina (her home state). She earned a Masters in Taxation 

from Georgetown University Law Center. 

Desk Side Chat With Monika Templeman 

What Do I Do if My Plan is Selected for an Examination? 

In each issue, Monika Templeman, Director of EP Examinations, responds to questions and 

offers insights on retirement plan topics uncovered during audits. You may provide feedback or 

suggest future topics for discussion by e-mailing her at: RetirementPlanComments@irs.gov. 

Recently, we have discussed errors in certain plan types and pointed 

out that plan sponsors can find, fix, and avoid plan errors. This 

leads us to a question many employers are asking after reading your 

last two chats. What steps should employers take if they receive a 

letter or a phone call from an agent notifying them of an 

examination of their plan? 

I think the first thing most people do when contacted by the IRS is panic. 

Unless you are receiving a refund, receiving letters from the IRS is 

seldom a cause for celebration. But I am here to tell them that they do 

not have to panic. First of all, if employers follow the procedures I 

provided in my last Desk Side Chat and use the tools we provide to find, 

fix, and avoid plan errors, they should be confident the examination will 

be relatively painless. 

2 
Spring 2008 Retirement News for Employers 

Employee Plans Examination Flowchart 

(Publication 4324) 

What should an employer do to prepare for the audit? 

The employer will receive an initial contact letter, which will include a list of items 

the agent would like to examine. The employer should review the list and contact 

the agent if they have questions about particular requests and exactly what form of 

documentation they need for the audit. Then the items requested should be 

available and organized for the agent’s visit. This will help eliminate delays and the 

need for follow-up visits. 

Speaking of visits, where is the audit usually held? 

I am going to sound very much like the regulation that provides this answer, but 

this is not a recorded message. A field examination will generally take place at the 

location where the taxpayer’s original books, records, and source documents 

pertinent to the examination are maintained. In the case of a sole proprietorship or 

taxpayer entity, this will usually be the employer’s principal place of business. 

Agents also need to familiarize themselves with the business operations. This can 

only be done by visiting the business. 

What can employers expect from the agent? 

Our agents are professionally trained and equipped with current technology. The 

agent is there to ensure plan compliance and to provide customer service. It is my 

expectation that every agent is polite, courteous, and professional. The agents also 

recognize the need to communicate regularly with the employer on the status of the 

examination. 

Are there any Internet tools available for employers regarding the 

examination of their plans? 

First, go to www.irs.gov/ep and visit the EP Examination Process Guide. This 

guide explains the process of an examination from start to finish. Section 3 of this 

guide, Initiation of an Examination, describes the first part of the process. Within 

this section, we have created an Audit Efficiency Guide. This guide, developed 

with the assistance of pension practitioners across the country, outlines how both 

parties will work with each other during the course of the audit. The pension 

practitioners also helped us create Top Ten Tips to Prepare for an Efficient 

Audit. This has a wealth of information to assist employers to prepare for an 

examination of their plan. Finally, I would recommend employers take a look at a 

flowchart of the total examination process. This is a good one-page snapshot of 

the entire audit process. 

You have provided employers with many ideas and tools to prepare for an 

examination. What should each employer expect from you and your staff? 

They should expect an efficient process that minimizes the burden on taxpayers 

and representatives as much as possible. They should also expect timely, open 

communication necessary to resolve any issues and keep the plan compliant.• 

3 
Spring 2008 Retirement News for Employers 

We’re Glad You Asked!
 

ERPA is Picking Up Speed 

The deadline for vendors to apply to the 

IRS to help develop and administer a 

program for a new category of 

practitioner: the “Enrolled Retirement 

Plan Agent,” or “ERPA” was May 5, 

2008. But, you might be asking, “What 

does this mean for me?” 

An individual who wishes to practice 

before the IRS as an ERPA will be 

required to pass a special enrollment 

examination to show competency in 

retirement plan matters. Once an 

individual passes the enrollment 

examination, the potential ERPA will file 

an application for enrollment with the 

Service. The applicant must undergo 

background investigations and tax 

compliance verifications. If the IRS 

approves the applicant, enrollment status 

is granted to the ERPA. 

Once granted enrollment status, the ERPA 

must complete continuing professional 

education, including ethics, as part of the 

required curriculum. The ERPA must 

renew his/her status every three years, 

which encompasses an additional 

background investigation and tax 

compliance verification. In addition, the 

Service would confirm that the ERPA has 

had no formal complaints lodged against 

him/her since the last renewal. 

Vendor selection is the next step in 

developing the ERPA program. We have 

begun the technical evaluation process 

and plan to award the contract by August 

2008, when we will develop the 

enrollment examination. The ERPA 

program is well on its way to becoming a 

reality.• 

Each issue of the RNE looks at a common question we 

receive and provides an answer and additional resources

 in response to the question. 

I began receiving required minimum distributions from my company’s 

retirement plan. Can l roll over these amounts into my IRA? 

No. Rollovers to IRAs of required minimum distributions (RMDs) from a 

retirement plan are not permitted. This is true whether the RMD is made because 

you turned age 701⁄2 or because you retired after age 701⁄2. If you receive your entire 

account balance in a lump sum, any portion that is an RMD cannot be rolled over, 

but the remainder can be. For example, if you are retired from the company holding 

your retirement plan and turned 701⁄2 this year, part of any lump sum received this 

year cannot be rolled over because the lump sum will include your first year’s 

RMD, even though your first year’s RMD can be put off until April 1 next year. 

I am 71 and participate in my company’s SIMPLE IRA plan. I will begin 

receiving required minimum distributions this year, but would like to continue 

to contribute to the SIMPLE IRA plan since I am still working. Is this 

permitted? 

Many small business owners and plan participants who either sponsor or 

participate in SEP or SIMPLE IRA plans question whether or not contributions can 

be made to these plans after the owner or participant reaches age 701⁄2. The answer 

is yes. In fact, participants turning 701⁄2 must be allowed to continue participating. 

This means that participants must continue to share in employer contributions and, 

in the case of SIMPLE IRA plans, must be allowed to continue to make salary 

reduction contributions. The contributions to both SEP and SIMPLE IRA plans are 

made to IRAs; traditional IRAs in the case of SEPs. Note that individuals age 701⁄2 

or older are not permitted to make the regular, annual contributions ($5,000 for 

2008 or $6,000 if age 50 or older) to traditional IRAs, whether or not the IRA is 

part of a SEP plan. (See Code §219.) 

Keep in mind that individuals are still required to take RMDs from these accounts, 

since all IRAs must start making RMDs once the owners have attained age 701⁄2. 

For additional information, see: 

Individual Retirement Arrangements, Publication 590 

Pension and Annuity Income, Publication 575 

SEP Retirement Plans for Small Businesses, Publication 4333 

SIMPLE IRA Plans for Small Businesses, Publication 4334• 

4 
Spring 2008 Retirement News for Employers 

Written Plan Requirement for 403(b) 

Plans 

Contributions to a 403(b) plan are excluded from 

the participants’ income if the plan meets certain 

requirements contained in the Internal Revenue 

Code. On July 26, 2007, final regulations were 

published that describe these requirements. One 

of the provisions requires that the 403(b) plan be 

in writing. The new 403(b) regulations are 

generally effective for the taxable year beginning 

after December 31, 2008. 

Andrew E. Zuckerman, Director, Employee Plans 

Ruling and Agreements, has indicated that 

Employee Plans is developing programs for 

403(b) plans that are similar to the current 

programs offered for 401(a) tax-qualified 

plans (i.e., a determination letter program and a 

pre-approved plan program). While it is unlikely 

that the new 403(b) programs will be in place by 

December 31, 2008, plan sponsors must 

generally have a written plan by January 1, 

2009. Thus, employers maintaining 403(b) plans 

should take appropriate steps to ensure their 

programs are in writing by December 31, 2008.• 

Product Profile – 401(k) Fix-It Guide – Online Resource 

The 401(k) Fix-It Guide is an online resource for retirement plan sponsors 

and their tax advisors to help find, fix, and avoid common plan mistakes in 

401(k) plans. The Guide provides tips and trends on eleven plan mistakes 

that IRS most often sees in the operation of 401(k) plans, including: 

• plan document updates, 

• plan operation, 

• definition of compensation, 

• nondiscrimination test failures, and 

• excess deferrals. 

The Guide provides practical tips, with examples, on how to find plan 

errors, fix them, and even avoid them. By selecting “More,” the user is 

directed to additional information describing the law, guidance, and 

correction methods for each plan problem. It directs plan sponsors and 

practitioners to IRS correction programs to correct the mistake, if needed. 

Plan sponsors should consider this list of potential mistakes as they annually 

review their 401(k) plans’ operation. 

We will continue to update the “Fix-It Guide” with the latest 401(k) error 

trends - check back for new information. 

See the “401(k) Fix-It Guide” in its entirety by selecting the “Plan Sponsor/ 

Employer” tab at the top of the Retirement Plans Community web page. 

Coming soon...SIMPLE IRA Plan Fix-It Guide and SEP Fix-It Guide.• 

5 
Spring 2008 Retirement News for Employers 

Recent Guidance 

Proposed Regulations REG-136701-07 

relate to Code §401(a)(35) pertaining to 

certain defined contribution plans that 

hold publicly traded stock of their 

employers. 

Proposed Regulations REG-151135-07 

contain guidance for the notice provisions 

for multiemployer plans under Code §432 

where the defined benefit multiemployer 

plan is in endangered or critical status. 

Proposed Regulations REG-110136-07 

contain guidance relating to providing 

notices pursuant to Code §4980F when a 

plan significantly reduces future benefit 

accruals. 

Proposed Regulations REG-108508-08 

relating to Code §430, provide guidance 

on quarterly contributions and address 

some of the §4971 funding excise tax 

provisions as added by PPA. 

Notice 2008-7 extends certain transitional 

relief described in Notice 2006-107 for 

certain defined contribution plans that 

hold publicly traded stock of their 

employers. 

Notice 2008-21 extends the effective date 

of certain proposed funding regulations to 

2009 and establishes a 2008 transitional 

rule for small defined benefit plans with 

end-of-the-year valuations. 

Notice 2008-29 states that taxpayers may 

continue to rely on the mortality tables in 

Rev. Rul. 96-7 for the alternative 

mortality tables for disabled participants 

in qualified defined benefit pension plans 

relative to §§430(h)(3)(D) and 

431(c)(6)(D)(v), pending public 

comments and further guidance. 

Notice 2008-30 provides guidance in the 

form of questions and answers for certain 

distribution-related provisions of PPA that 

are effective in 2008. 

Announcement 2008-23 discusses the 

issuance of opinion and advisory letters 

and the opening of the EGTRRA 

determination program for pre-approved 

defined contribution plans.• 

This Way to the Forums 

The 2008 IRS Nationwide Tax Forums will be held at six locations across the 

country this summer. The EP seminars are “401(k) Plans for Self-Employed 

Individuals” and “Retirement Plan Choices for Self-Employed Individuals.” 

401(k) plans for self-employed individuals are being heavily marketed in the 

retirement plans community. Are they a new kind of retirement plan? Can 

employers contribute more to this type of retirement plan? A lot of misinformation 

is circulating about these plans and our session “401(k) Plans for Self-Employed 

Individuals” will set the record straight by separating fact from fiction. 

One size-does-not-fit-all when it comes to choosing a retirement plan. 

“Retirement Plan Choices for Self-Employed Individuals” discusses the factors 

that self-employed individuals need to look at when deciding which retirement 

plan option to choose for themselves and their businesses. 

For the first time, Employee Plans will be offering a workshop at the Tax Forums. 

“Retirement Plan Pitfalls Workshop (Use IRS Fix-It Guides to Keep Your 

Clients Out of Trouble)” is a two-hour workshop where attendees will learn how 

to use the IRS “Fix-It Guides” to identify and correct four of the most frequent 

pension errors found by the IRS. In addition, the IRS will provide tips on how to 

avoid these errors in the future. 

Employee Plans and Exempt Organizations will sponsor a booth in the exhibit hall 

where you can pick up our products or speak with an EP or EO specialist. Dates 

and locations for the 2008 IRS Nationwide Tax Forums are: 

Hilton Atlanta Atlanta, GA July 1st - 3rd 

Hyatt Regency Chicago Chicago, IL July 22nd - 24th 

Orlando World Center Orlando, FL August 5th - 7th 

Rio All Suites Hotel Las Vegas, NV August 19th - 21st 

Hilton New York New York, NY August 26th - 28th 

Town and Country San Diego, CA September 9th - 11th 

For additional information about the Tax Forums, visit www.irs.gov and then go 

to the “Tax Professionals” tab and select “2008 Tax Forum Registration is Open!” 

You can register online at www.taxforuminfo.com.• 

6 
Spring 2008 Retirement News for Employers 

Plan Filing Update Webcast 

Visit EBSA’s homepage for the archived 

version of EBSA’s recent webcast with the IRS 

on common filing errors, selecting an auditor 

for your plan, 403(b) plan filing preparation, 

blackout notices, and voluntary correction 

programs, among other issues. 

Free Compliance Assistance Events 

For dates and locations of free compliance 

assistance events sponsored by EBSA for both 

retirement and health benefit plans, visit EBSA’s 

homepage.• 

DOL News 

Department of Labor’s Employee Benefits Security Administration (DOL/ 

EBSA) announced new guidance and tools to assist plan sponsors in complying 

with ERISA, including those featured below. You can subscribe to DOL/EBSA’s 

web site homepage or PPA page for updates. 

Qualified Default Investment Alternatives (QDIAs) 

Technical corrections to the final regulation on QDIAs were published. They 

affect three areas of the final regulation including changes clarifying the 

preamble example on “round-trip” restrictions, expanding the scope of who can 

manage a QDIA, and correcting the “grandfather” relief for stable value funds. 

Field Assistance Bulletin 2008-03 provides guidance on frequently asked 

questions raised since publication of the final rule. 

Proposed Regulation to Increase Disclosure of Fees and Conflicts of 

Interest 

A public hearing was held on March 31 - April 1 at DOL on the proposed rules 

and proposed class exemption.Visit EBSA’s Public Comments page for 

requests to testify at the hearing and testimony, as well as comments on the two 

proposals. 

Proposed Safe Harbor Rule for Employee Contributions to Small

Pension and Welfare Plans 

A proposed rule creating a safe harbor period under which participant 

contributions to a small plan will be deemed to be made in compliance with the 

law if those amounts are deposited with the plan within seven business days of 

receipt or withholding was published. 

Under current rules, employers of all sizes must transmit employee contributions 

to pension plans as soon as they can reasonably be segregated from the general 

assets of the employer, but no later than the 15th business day of the month 

following the month in which contributions are received or withheld by the 

employer. 

Before the effective date of the final regulation, DOL/EBSA will not assert a 

violation of ERISA regarding participant contributions where such contributions 

are deposited with small plans within the seven business day safe harbor. 

In addition, DOL/EBSA requested information and data regarding a possible 

safe harbor for plans with 100 or more participants so that they can evaluate the 

current contribution practices of large employers. 

Guidance on Collection of Delinquent Contributions 

Field Assistance Bulletin 2008-01 provides guidance on fiduciaries’ and 

trustees’ responsibilities for monitoring and collecting delinquent employer and 

employee contributions owed to plans governed by ERISA. 

Electronic Filing of Form 5500 Moving Forward 

EBSA is moving to the development phase of the EFAST2 system for electronic 

filing of the Form 5500 annual reports. The EFAST2 system will receive, 

process, store, publicly disclose, distribute, and archive approximately one 

million Form 5500 reports filed annually via the Internet. Electronic filing is 

required for plan year 2009 filings, due in 2010.• 

7 
Spring 2008 Retirement News for Employers 

Fixing Common Plan Mistakes: 

Hardship Distributions in a 401(k) Plan 

Each issue of the RNE looks at a common error that occurs in retirement plans and provides information 

on fixing the problem and lessening the odds of it happening again. 

The Problem: 

A 401(k) plan permits participants to receive hardship distributions. The distributions, 

however, do not satisfy the plan provisions relating to hardship distributions. 

Example: George is the 100% owner of the George Company. The company sponsors a 

401(k) plan which provides that a participant may take a distribution on account of 

hardship. The plan document requires that a participant may only receive a hardship 

distribution for the following reasons: 

(1) to purchase a principal residence; 

(2) to prevent eviction from, or foreclosure on, the principal residence; 

(3) to pay certain medical expenses incurred by the participant, participant’s spouse, 

or dependents; and 

(4) to pay certain educational expenses incurred by the participant, participant’s 

spouse, or dependents. 

In addition, the plan document requires that the participant use all other sources of 

financing including proceeds from insurance, liquidation of other assets, and loans from 

other commercial sources before applying for a hardship distribution. Jim, a plan 

participant, asked for and received a hardship distribution of $20,000 from the plan. He 

did not provide a reason for the distribution and did not establish that he had used other 

sources of financing before applying for the hardship distribution. 

Finding the Mistake: 

In order to find the mistake, review: 

(a) the plan document to determine when distributions may occur; 

(b) each plan distribution and its related documentation showing the reason for the 

distribution (e.g., distribution form signed by the participant indicating the reason for 

the distribution); and 

(c) whether distributions designated as “hardship distributions” were made in accordance 

with the terms of the plan. 

In the example above, Jim did not complete any distribution forms. The only 

documentation in the file was a note requesting a hardship distribution for $20,000. It was 

found that Jim used the money to buy a car. There was no evidence that he investigated 

other sources of financing. 

This was an isolated instance. For each of the other hardship distribution requests, the 

participant was required to complete a distribution form. The distribution form required 

the participant to specify the purpose for the distribution (e.g., medical expense, education 

expense, purchase of residence) and to certify that other sources of financing (including 

insurance proceeds, disposition of other assets, or other loans) were not available to the 

participant. The distribution form was then submitted to the employer’s accountant, who 

8 
Spring 2008 Retirement News for Employers 

Contributors to 

this Issue: 

Avaneesh Bhagat 

Kathy Davis 

Joyce Kahn 

Roger Kuehnle 

Louis Leslie 

Deborah Lohning 

Peter McConkey 

Mark O’Donnell 

Nancy Payne 

Keith Ruprecht 

John Schmidt 

Brenda Smith-Custer 

Monika Templeman 

Mikio Thomas 

Kathy Tuite • 

evaluated the form before approving the hardship distribution to the 

participant. When Jim applied for a distribution, however, he went directly to 

George, who authorized payment without requiring Jim to complete the 

distribution form. Also, George was not familiar with the terms of the plan. 

As a result, he approved a distribution that did not comply with those terms. 

Fixing the Mistake: 

The company should take reasonable steps to ensure that Jim returns the 

erroneously distributed amounts to the plan. Jim should also be advised that 

to the extent any amounts are not returned, they are not eligible for tax 

favored treatment (i.e., the amounts are not eligible for rollover to an IRA or 

other retirement plan). In addition, the plan’s administrative procedures 

should be revised to ensure that the error does not occur again. (See 

“Avoiding the Mistake” below.) 

Correction Program(s) Available: 

The plan may use the correction programs described in Revenue Procedure 

2006-27 to correct the mistake. If the plan is not the subject of an IRS 

examination, then the plan will generally be able to correct the mistake using 

either the Self-Correction Program (SCP) or the Voluntary Correction 

Program (VCP). If the plan is under IRS examination, then mistakes are 

generally corrected pursuant to a closing agreement under the Audit Closing 

Agreement Program (Audit CAP). However, if the mistake is an isolated 

instance (as is the case in this example), the mistake may still be eligible for 

correction under SCP. 

Avoiding the Mistake: 

George should be familiar with the terms of the plan. A formal approval 

process had been installed to ensure that hardship distributions comply with 

the terms of the plan, including documenting the reason for the hardship and 

certification of the unavailability of other sources of money. George should be 

aware of the purpose of such a process, and understand the risks of approving 

distributions without following it. George should not approve distributions 

based on verbal or informal written requests, but instead, should follow the 

formal approval process before authorizing a hardship distribution. 

For more details on how to find, fix, and avoid this mistake, you may also 

refer to the online 401(k) Fix-It Guide. For details on the correction 

programs, please visit www.irs.gov/ep and select “Correcting Plan Errors.”• 

9 
Spring 2008 Retirement News for Employers 

Retirement News for Employers 

Retirement News for Employers (RNE) is a 

free, quarterly newsletter aimed at keeping 

employers informed about retirement plan 

sponsorship. RNE is prepared by the IRS’s 

Employee Plans (Tax Exempt and 

Government Entities) office. 

For your convenience, RNE includes Internet 

links – identified by the blue underlined text – 

to referenced materials. 

How to Subscribe 

RNE is distributed exclusively through IRS email. Sign up for your free subscription by 

going to the Retirement Plans Community 

web page and selecting “Newsletters” in the 

left pane. Prior editions of the RNE are also 

archived there. 

Send Comments/Suggestions to: 

EP Customer Education & Outreach 

SE:T:EP:CEO 

1111 Constitution Ave., N.W., PE-4C3 

Washington, DC 20224 

FAX: (202) 283-9525 

E-Mail: RetirementPlanComments@irs.gov 

Have a Question? 

For taxpayer assistance with retirement 

plans technical and procedural questions: 

Please call (877) 829-5500 or visit the 

“Contact EP/Services” section at 

www.irs.gov/ep. 

For questions relating to retirement income, 

IRAs, Roth IRAs, educational IRAs, 

medical savings accounts, and §125 

cafeteria plans: 

Please call (800) 829-1040.• 

Mark Your Calendar 

Meeting deadlines can be a cumbersome part of operating your retirement 

plan. To help, we have listed some important deadlines. Please note that 

the dates are for calendar-year plans. 

June 9: EBSA Seminar: Voluntary Fiduciary Correction Program 

Workshop – Foothill Ranch, CA. 

June 10: EBSA Seminar: Fiduciary Education Workshop – Denver, CO. 

June 18: EBSA Seminar: Voluntary Fiduciary Correction Program 

Workshop – Atlanta, GA. 

June 19: EBSA Seminar: Voluntary Fiduciary Correction Program 

Workshop – Santa Clarita, CA. 

July 1: EBSA Seminar: Fiduciary Education Workshop – San 

Francisco, CA. 

July 1 - 3: IRS Nationwide Tax Forum – Atlanta, GA. 

July 15: Second defined benefit employer contribution quarterly 

installment due. 

July 22 - 24: IRS Nationwide Tax Forum – Chicago, IL. 

July 31: “Form 5500 Day”– File 2007 Form 5500, Annual Return/Report 

of Employee Benefit Plan, or Form 5500-EZ, Annual Return of OneParticipant (Owners and Their Spouses) Retirement Plan, with DOL/ 

EFAST, or File Form 5558, Application for Extension of Time to File 

Certain Employee Plan Returns, with IRS to request an automatic 21⁄2 ­

month extension (October 15, 2008) to file the Form 5500 or 

Form 5500-EZ. 

August 5 - 7: IRS Nationwide Tax Forum – Orlando, FL. 

August 19 - 21: IRS Nationwide Tax Forum – Las Vegas, NV. 

August 26 - 28: IRS Nationwide Tax Forum – New York, NY. 

For a comprehensive list of upcoming EP Educational Events, visit the 

Retirement Plans Community web page, select “Plan Sponsor/Employer,” 

then “Questions: Where to Get Answers,” and click on “Upcoming EP 

Educational Events.”• 

Department of the Treasury Publication 4278 (05-2008) 

Internal Revenue Service Catalog Number 37968B 

10 www.irs.gov 
Spring 2008 Retirement News for Employers 

Timing is Everything
 

Some helpful retirement tips for employees from the IRS...
 

Phew! April 15th is over. Don’t wait until next April to start planning for your retirement. 

Have you received a raise? Did your child graduate from college? Did you graduate? 

Congratulations! Consider decreasing your taxable income and increasing your retirement... 

•	 Many plans have quarterly or semi-annual entry dates. If you are not already participating in 

your plan, consider starting. 

•	 If you are participating, consider increasing your deferrals. Generally, for 2008 you

 can contribute up to: 

•	 IRA - $5,000 

• SIMPLE plan - $10,500 

• 401(k) or 403(b) plan - $15,500 

If you turn 50 at any time during 2008, you may be eligible to make catch-up contributions. For 

2008, the maximum catch-up contribution is: 

•	 IRA - $1,000 

• SIMPLE plan - $2,500 

• 401(k) or 403(b) plan - $5,000 

For more retirement tips, talk to your employer or visit www.irs.gov/ep, select “Plan Participant/ 

Employee” and click on “Timing is Everything.” 

Department of the Treasury Publication 4278 (05-2008) 

Internal Revenue Service Catalog Number 37968B 

www.irs.gov 11