Volume 5, Winter 2009 

A Look Inside 

Thinking of adding automatic 

enrollment to your 401(k) plan? A new 

publication, Automatic Enrollment 

401(k) Plans for Small Businesses, 

gives direction to small employers 

...more on page 3 

Correct excess contributions by 

following these steps in “The Fix Is 

In”...more on page 4 

The new Form 990 has 16 standardized 

schedules to provide critical 

information about tax 

compliance...more on page 6 

Avoid plan mistakes by using our Fix-It 

Guides as discussed by Monika 

Templeman, EP Exam Director 

...more on page 8 

Also in this Issue

 New on the Web...............................2
 

We’re Glad You Asked!................. 2

 Recent Guidance.............................4

 The Filing Cabinet..........................7

 DOL News.........................................9

 Mark Your Calendar.....................11

 Timing is Everything....................12

 Retirement News

 for Employers
 

Information for Sponsors of Retirement Plans 

Internal Revenue Service Tax Exempt and Government Entities 

Did You Amend Your SIMPLE IRA Plan for EGTRRA? 

The Economic Growth and Tax Relief Reconciliation Act of 2001 made several 

significant changes affecting retirement plans. Revenue Procedure 2002-10 

required sponsors of IRA-based plans to update their plan documents by the end 

of 2002, or shortly thereafter in some cases. However, audits of SEPs, SARSEPs 

and SIMPLE IRA plans reveal that some sponsors have not timely updated their 

plans for the EGTRRA law changes. 

Not updating your IRA-based plan for EGTRRA can cause your plan to lose tax 

benefits for contributions. As a result, participants may need to include salary 

deferrals and employer contributions made to their IRAs as income for the years 

the plan was not updated. 

All IRS model plans with a revision date of 2002 or later have the required 

EGTRRA tax law changes. Model plan sponsors with plans dated earlier than 

2002 must update their IRA-based plans for EGTRRA using the Employee 

Plans Compliance Resolution System. You can do this by adopting a 

prototype plan approved for EGTRRA or a current IRS model plan: Form 5304-

SIMPLE, Form 5305-SIMPLE, Form 5305-SEP or Form 5305A-SEP. 

Employee Plans would like to remind plan sponsors of their responsibility to 

periodically review their plan documents for tax-law changes that impact their 

plans. Our web site contains useful information about SIMPLE IRA plans, 

SEPs, SARSEPs, FAQs and Fix-It Guides to help you identify and correct 

common plan mistakes.• 

New Law Waives Required Minimum Distributions for 2009 

The Worker, Retiree, and Employer Recovery Act of 2008 waives any 

required minimum distribution for 2009 from retirement plans that hold each 

participant’s benefit in an individual account, such as 401(k), 403(b) and certain 

457(b) plans. The Act also waives any RMDs for 2009 from an IRA. See our 

Special Edition for details and related “We’re Glad You Asked!” on page 2.• 
Winter 2009 Retirement News for Employers 

We’re Glad You Asked!
 

New on the Web 

Here are the latest postings to the Retirement 

Plans Community web page: 

Fix-It Guides Web Page 

The SIMPLE IRA Plan Fix-It Guide is here! It 

provides tips on how to find, fix and avoid 

common mistakes in SIMPLE IRA plans. Find it 

on our Fix-It Guides web page along with the 

401(k) and SEP Fix-It Guides. The SARSEP Plan 

Fix-It Guide is coming soon. 

ERPA Questions and Answers 

We have updated the Enrolled Retirement 

Plans Agent Program web page with two new 

questions – “Where can I earn CPE credits?” 

and “How does an organization become a 

sponsor for ERPA CPE credits?” 

Correcting Plan Errors – VCP Fill-In 

Appendices 

We have posted fill-in appendices to help plan 

sponsors complete a Voluntary Correction 

Program application. 

Guidelines Regarding Rollovers as 

Business Startups (ROBS) 

We have posted procedures for examination and 

determination agents to address issues 

involving a version of a qualified plan being 

marketed as a means for prospective business 

owners to access accumulated tax-deferred 

retirement funds, without paying applicable 

distribution taxes, in order to cover new 

business start-up costs. These arrangements are 

known as Rollovers as Business Startups, or 

ROBS.• 

Each issue of the RNE looks at a common question we receive and 

provides an answer and additional resources in response to the question. 

In this edition you are getting a two’fer. 

I wanted to have the maximum amount of salary deferrals 

put into my account in my employer’s 401(k) plan in 2008 but 

I made a mistake on my election form and I deferred less 

than the maximum. Can I contribute now, in 2009, to make up 

the difference so that I reach the 2008 maximum contribution 

limit? 

No. A participant’s salary deferrals are counted in the year the 

participant would have received the salary in cash had he or she not 

made the deferral election. The only way you can make salary 

deferrals, for any year, is by having your employer contribute part of 

your compensation to the plan before you have access to it. If you 

already received the compensation, then you cannot make salary 

deferrals on it, for example, by writing a check to the plan. 

The maximum salary deferral amount for 2008 was $15,500 

($20,500, if you were age 50 or older by the end of 2008). For 2009, 

the maximum salary deferral amount is $16,500 ($22,000, if you are 

age 50 or older by the end of 2009). 

Sometimes the amount withheld and deposited into the plan as salary 

deferrals may not be exactly what you expected because of planimposed restrictions and the plan’s definition of compensation for 

deferral purposes. This is especially true if you choose a percentage, 

rather than a dollar amount, on your deferral form. 

If you are a self-employed individual, salary deferrals for 2008 may 

be deposited into the plan a short time after the end of the year, but 

the amount deposited must correspond to your deferral election and 

your deferral election must have been made before the end of your 

2008 tax year. 

For additional information, see: 

Publication 560, Retirement Plans for Small Business (SEP, 

SIMPLE, and Qualified Plans) 

Section 401(k) Regulations 

I understand the requirement to receive a 2009 required 

minimum distribution from my former employer’s retirement 

plan is waived. Can I take it out anyway and then roll it over 

into my IRA? 

Maybe. If the employer plan is a defined contribution plan, such as a 

401(k) plan, the requirement to take a 2009 required minimum 

distribution has been waived. So unless you’re taking a 2008 RMD 

2 
Winter 2008 Retirement News for Employers 

 

 

 

Winter 2009 Retirement News for Employers 

in 2009, any distribution in 2009 will not be an RMD and may be rolled over 

into an IRA if it is an “eligible rollover distribution” and otherwise satisfies 

the rollover rules. Generally, an eligible rollover distribution is any 

distribution from your retirement plan, but there are exceptions. Amounts 

from a designated Roth account can only be rolled into a Roth IRA; all 

other eligible rollover distributions can be rolled into a traditional IRA. If 

you want to put the eligible rollover distribution (other than from a 

designated Roth account) into a Roth IRA, any part of the distribution that 

has not been previously taxed must be included in your gross income and 

you must meet the rules for converting a traditional IRA to a Roth IRA. 

These are: 

•	 your modified adjusted gross income for Roth IRA purposes is not 

more than $100,000, and 

•	 you are not a married individual filing a separate return. 

For additional information, see: 

Publication 575, Pension and Annuity Income 

Publication 590, Individual Retirement Arrangements (IRAs) 

Notice 2009-9, Required Minimum Distributions for 2009• 

A U T O M AT I C 

E N R O L L M E N T 

4 01 (k) PLANS for Small 

Businesses 

Automatic Enrollment 401(k) Plans for Small Businesses 

Automatic Enrollment 401(k) Plans for Small Businesses, (Publication 

4674), has been released by the Employee Benefits Security Administration 

and the IRS. This plain language publication directs businesses who already 

sponsor 401(k) plans to an automatic enrollment feature, where plan sponsors 

automatically enroll employees in the plan unless the employee elects 

otherwise. The plan must specify the percentage of an employee’s wages that 

will be automatically deducted from each paycheck as a contribution to the 

plan. The plan document must also explain that employees have the right to 

elect not to have salary deferrals withheld or to elect a different percentage to 

be withheld. 

Order Publication 4674 by calling IRS at (877) 829-5500 or EBSA at 

(866) 444-EBSA (3272). 

For more information on Automatic Enrollment 401(k) Plans, see:

 •	 IRS Proposes Rules on Automatic Contribution Arrangements:

 Employee Plans News, Special Edition, November 7, 2007

 •	 Sample Notice to Participants Regarding Automatic Enrollment/

 Automatic Contribution Arrangements: Employee Plans News,

 Special Edition, November 15, 2007• 

3 
Winter 2009 Retirement News for Employers 

Recent Guidance 

•	 Rev. Proc. 2009-6, The annual EP 

determination letter revenue 

procedure. 

•	 Rev. Proc. 2009-8, The annual 

EP/EO revenue procedure on user 

fees. 

•	 Rev. Rul. 2009-2 provides covered 

compensation tables under Code 

§401 for 2009 to determine defined 

benefit plan contributions and 

permitted disparity. 

•	 Notice 2008-108 lists changes in 

Rev. Proc. 2007-44 for statutory, 

regulatory and guidance changes 

needed for opinion, advisory and 

determination letter requests for 

the 12-month period beginning 

February 1, 2009. 

•	 Notice 2009-3 provides that 

§403(b) plan sponsors now have 

until December 31, 2009 to comply 

with the written §403(b) plan 

requirement. This notice also 

briefly describes other programs 

the IRS intends to establish for 

§403(b) plans. 

•	 Notice 2009-9 provides guidance 

to financial institutions on the 2009 

required minimum distributions 

reporting rules due to the Worker, 

Retiree, and Employer Recovery 

Act of 2008. WRERA waives any 

RMDs for 2009 from IRAs and 

retirement plans that hold 

participant benefits in individual 

accounts.• 

Fixing Common Plan Mistakes: 

Failure to Limit Contributions for a Participant 

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. 

Background: 

A qualified 401(k) plan must provide limits for contributions and forfeitures 

allocated to a participant’s account. The total of employer contributions, 

employee contributions and forfeitures allocated to a participant’s account 

cannot exceed the limits under §415(c) of the Internal Revenue Code. 

Section 415(c) generally provides that during a limitation year (the calendar 

year, unless another 12-month period is specified in the plan), the total of 

employer contributions, employee contributions and forfeitures made for a 

participant cannot exceed the lesser of: 

1)	 $40,000 or 

2)	 100% of the participant’s compensation. 

Section 415(d) of the Code provides for a cost of living adjustment to the 

$40,000 dollar limit. In 2007, the dollar limitation was $45,000. 

For 401(k) plans, the types of contributions subject to the limit include: 

•	 elective contributions (pre-tax or Roth); 

•	 after-tax employee contributions; 

•	 employer matching contributions; and 

•	 employer profit-sharing contributions. 

The Problem: 

In 2007, John earned $100,000 in compensation as an employee of the QP 

Corporation and was a participant in QP Corporation’s 401(k) Plan. The plan 

permits elective contributions and provides a 100% matching employer 

contribution for the first $8,000 in elective contributions, as well as 

discretionary profit-sharing contributions. The plan does not allow an 

employee to designate any portion of his or her elective contribution as a 

Roth contribution. QP did not allocate any forfeitures to participants in 2007. 

During 2007, QP made contributions totaling $58,000 for John consisting of: 

•	 elective contributions: $15,000 

•	 employer matching contributions: $8,000 

•	 employer profit-sharing contributions: $35,000 

The 2007 contribution limit for John is $45,000 (the lesser of $45,000 or 100% 

of John’s $100,000 compensation). Accordingly, the $58,000 contributions 

made for John in 2007 exceeded the limitation under §415(c) by $13,000. 

QP discovered the failure to limit the contributions for John in early 2009. 

4 
Winter 2008 Retirement News for Employers Winter 2009 Retirement News for Employers 

Contributors to 

this Issue: 

Avaneesh Bhagat 

Anita Bower 

Bob CreMeens 

Kathy Davis 

Roger Kuehnle 

Mark O’Donnell 

Nancy Payne 

John Schmidt 

Brenda Smith-Custer 

Monika Templeman 

Mikio Thomas 

Kathy Tuite• 

Finding the Mistake: 

In order to find the mistake, the plan administrator should timely prepare 

allocation schedules showing amounts contributed and allocated for plan 

participants. The allocated amounts should include all employer contributions, 

employee contributions (including elective contributions) and forfeiture 

allocations. The allocation schedules should be reviewed periodically by 

comparing total allocations to the Code §415(c) limitations. 

Fixing the Mistake: 

If contributions for a participant include both employer and employee elective 

contributions, then correction for contributions that exceed the employee’s 

limitation under §415 should be made, to the extent required, in the following 

manner: 

Step 1: Distribute unmatched elective contributions (adjusted for earnings) to the 

affected participant. If any excess remains, then proceed to Step 2. 

Step 2: Distribute elective contributions (adjusted for earnings) that are matched, 

and forfeit related matching contributions (adjusted for earnings). If any excess 

remains, then proceed to Step 3. 

Step 3: Forfeit other profit-sharing contributions. 

The employer should report the corrective distribution made to the participant on 

Form 1099-R. The participant should include the distribution as income but does 

not have to pay the 10% additional tax on early distributions under §72(t) of the 

Code. In addition, the participant may not rollover the corrective distribution to 

another qualified plan or to an IRA. 

The plan sponsor should transfer the forfeited employer contributions (profitsharing or matching) to an unallocated account. These amounts are used to 

reduce employer contributions in the current year and, if applicable, subsequent 

year(s). 

Applying these steps, the correction of the excess contribution of $13,000 for 

John would be as follows: 

Step 1: John made $7,000 in unmatched elective contributions (elective 

contributions of $15,000 less $8,000 that QP matched). The plan must distribute 

the $7,000 (adjusted for earnings) to John. After the distribution, there is still an 

excess contribution of $6,000 that the plan must correct, to the extent possible, 

under Step 2. 

Step 2: John made $8,000 in matched elective contributions. The plan must 

distribute $3,000 in matched elective contributions (adjusted for earnings) and 

forfeit the corresponding matching contribution of $3,000 (adjusted for earnings). 

This step fully corrects John’s remaining $6,000 excess. 

As a result, John will receive a total distribution of $10,000 (adjusted for 

earnings). John must include the entire corrective distribution in his income. 

However, John will not have to pay the additional 10% tax on early distributions 

under §72(t) of the Code. The distribution is not eligible for rollover to another 

5 
 

 

 

Winter 2009 Retirement News for Employers 

qualified plan or an IRA. In addition, the plan will forfeit $3,000 (adjusted 

for earnings) from John’s matching contribution account. This amount 

will be transferred to an unallocated account and used to reduce 

employer contributions required for the current year and if applicable, 

subsequent year(s). 

Correction Program(s) Available: 

QP Corporation may use the correction programs described in Revenue 

Procedure 2008-50 to correct the mistake. 

Avoiding the Mistake: 

The employer should monitor employees’ elective contributions made 

during the limitation year. After determining the corresponding matching 

contribution under the terms of the plan, the employer should consider the 

§415 limitations while determining (a) the amount of the discretionary 

profit-sharing contribution and (b) where appropriate, the manner in 

which the profit-sharing contribution could be allocated among plan 

years.• 

New Form 990 Requirements 

Tax-exempt organizations with gross receipts of $1 million or more and/or 

assets of $2,500,000 or more must file the new Form 990 for the 2008 

tax year. The new 990 will be phased in over the next three years for most 

smaller organizations. 

Tax preparers and organizations need to review the new form and 

instructions carefully to fully understand how the changes affect the filing 

process. The new 990 consists of a core form plus 16 standardized 

schedules. It has enhanced reporting to provide critical information about 

tax compliance and contains more opportunities to explain activities and 

provide context for financial and operational information. Organizations 

complete only those schedules that apply to them. To fill out the form 

completely, accurately and on-time, organizations may now need greater 

input from their program staff and board members. 

In addition to financial reporting, the new 990 offers tax-exempt 

organizations the opportunity to explain their work in detail. The new form 

makes it easier for the public to find specific information about an 

organization — a key advantage in today’s increasingly transparent world 

and a positive tool for organizations to reach out to the public. 

Learn more online: 

• Tax Information for Charities & Other Non-Profits 

• Mini-Courses on Redesigned Form 990• 

6 
Winter 2008 Retirement News for Employers 

 

Winter 2009 Retirement News for Employers 

The Filing Cabinet 

Forms – you can’t live with them, you can’t live without them. Just 

like you use forms when running your business – everything from 

spreadsheets to receipts to invoices – you also use forms when 

dealing with a retirement plan. 

New Forms 

Two new forms deal with the new ERPA program and designation: 

• 	 Form 23-EP, Application for Enrollment to Practice

 Before the Internal Revenue Service as an Enrolled

 Retirement Plan Agent (ERPA). A candidate would

 complete this application to practice before the IRS as

 an Enrolled Retirement Plan Agent. 

• 	 Form 8498-EP, Program Sponsor Agreement for

 Continuing Education for Enrolled Retirement Plan 

Agents. An organization would use this form to become

 an approved ERPA sponsor to offer continuing

 professional education. 

For additional information concerning the ERPA program, see our 

ERPA web page. 

Updated Publications 

The following publications have been revised for use in preparing 

2008 returns: 

• 	 Publication 560, Retirement Plans for Small Business

 (SEP, SIMPLE, and Qualified Plans) 

• 	 Publication 571, Tax-Sheltered Annuity Plans (403(b)

 Plans) For Employees of Public Schools and Certain

 Tax-Exempt Organizations 

•	 Publication 575, Pension and Annuity Income 

• 	 Publication 590, Individual Retirement Arrangements

 (IRAs) 

Ringing In the New Year 

Do you need a calendar? The IRS 2009 Tax Calendar for Small 

Businesses & Self-Employed (Publication 1518) contains 

hundreds of reminders for everything from payroll deposit dates to 

information on the Economic Stimulus Act of 2008. Look for 

“Ready, Set, Retire!” in March’s page for retirement plan tidbits. 

You can view the calendar online, download it or even watch a 

video about it. 

You can download all of the above-mentioned products (except the 

2009 calendar) at EP Forms/Pubs/Products or you can order 

them by calling (800) 829-3676.• 

7 
Winter 2009 Retirement News for Employers 

Desk Side Chat With Monika Templeman 

The Biggest Mistake 

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. 

Author Weston Agor stated, “Making mistakes simply means you are learning 

faster.” Putting a twist on this quote, the plan mistakes found in the examinations 

completed by Employee Plans helps us to learn faster about the common mistakes 

that jeopardize retirement plans. By sharing them with our readers, of this 

newsletter, they can learn how to avoid these errors faster. 

What do you see as the biggest mistake? 

The biggest mistake continues to be the failure to timely amend the plan document 

to reflect current law. The Economic Growth and Tax Reconciliation Act brought a 

host of changes intended to simplify plan administration while improving benefits. 

Failure to update the plan document to reflect recent law changes is a common 

problem that we see in all plan types and it is a frequent mistake in IRA-based 

plans. Approximately 20% of the SEP plans and 25% of the SIMPLE IRA plans 

we examine have this error. 

What were some of the major EGTRRA changes? 

EGTRRA allows catch-up contributions for participants age 50 and over, increased 

contribution limits, increased compensation limits and higher deduction limits. 

Do 401(k) examinations reveal other plan document related errors? 

Yes. Failure to notify the employees, vendors and tax professionals of changes 

made to the plan document or to the operation of the plan. From there, we find that 

the plan terms are not being followed. This error occurs more times than one 

would think. For example, a company’s decision to exclude bonuses from the 

definition of compensation and not communicating that change to all persons 

involved can lead to a host of problems. 

What are the biggest operational mistakes found on examination? 

We are finding mistakes involving the plan’s participation and eligibility 

requirements. “Employees” for purposes of determining who can be in the plan 

includes all employees of all related employers. So, using a SEP as an example, if 

an employer and/or their family members own a controlling interest in another 

business, employees of that other business are “employees” for purposes of 

determining who is eligible to participate in the SEP. 

Another common error involves the failure to make timely deposit of employee 

deferrals. The IRS and the DOL have set rules for when deposits must me made. 

SIMPLE IRA plans and 401(k) plans must follow these rules. 

There’s more to this error than plan qualification, correct? 

Yes. The failure to timely deposit employee elective deferrals may constitute both 

an operational mistake and a prohibited transaction. The operational aspect of the 

error can be corrected through the IRS Correction Programs, prohibited 

transactions can not. Prohibited transactions require excise taxes to be paid to the 8 
Winter 2008 Retirement News for Employers Winter 2009 Retirement News for Employers 

IRS and must be corrected. The Department of Labor’s Employee Benefits 

Security Administration maintains a Voluntary Fiduciary Correction 

Program, which may be able to resolve the prohibited transaction. 

Where can readers go to find more of the biggest mistakes and how to 

correct them? 

I would highly recommend that every plan sponsor take time to visit our webbased Fix-It Guides. We have created Fix-It Guides as reference tools to 

present the most common mistakes we find in retirement plans and the process 

of finding, fixing and avoiding plan mistakes. The Guides explain our system of 

correction programs that enable employers to correct plan mistakes, often with 

no fees paid to the IRS or any IRS involvement. These programs help ensure 

that benefits promised to employees are paid and that plans retain their taxfavored status. Plan sponsors can also determine which of the three correction 

programs best apply to their situation and recognize the importance of 

correcting mistakes earlier rather than later, by visiting our Correcting Plan 

Errors page. 

Mistakes can and do happen, but the earlier these mistakes are found and 

corrected, the better off everyone will be (i.e., the employer, participants and 

beneficiaries under the plan). 

Any final words of wisdom for your readers? 

Well, since you opened with a quote, let me end with one from the Latin writer 

of maxims, Syrus. “From the errors of others, a wise man corrects his own.” 

We have the tools on the web to assist you in finding, fixing and avoiding your 

own mistakes and we encourage plan sponsors to use them to keep their plans 

out of trouble.• 

DOL News 

Guidance on Fiduciary Duties in Response to Recent Events 

Involving the Madoff Investment Firm 

On February 5, DOL/EBSA announced guidance on the duties of employee 

benefit plan fiduciaries in light of alleged abuses involving Bernard L. Madoff 

Investment Securities LLC. 

DOL/EBSA provided the guidance to fiduciaries, investment managers and 

other investment service providers to plans who believe they may have 

exposure to losses on investments with entities related to the Madoff firm. 

The guidance also provides steps that can be taken to assess and protect the 

interests of plans, participants and beneficiaries under ERISA. 

2009 Form 5500 Annual Return/Report and Electronic Filing Webcast 

DOL/EBSA is hosting the first in a series of free webcasts to help employers 

and plan service providers prepare for the changes in the requirements of the 

2009 Form 5500 annual return/report as well as the electronic filing 

9 
 

 

Winter 2009 Retirement News for Employers 

Guidance on Fidelity Bonding 

On November 25, DOL/EBSA issued 

Field Assistance Bulletin 2008-04 

which provides guidance on the 

fidelity bonding requirements under 

ERISA §412. FAB 2008-04 was 

developed to address issues that 

EBSA investigators frequently 

confront in their investigations. The 42 

FAQs address a variety of issues 

including: whether a bond may use an 

omnibus clause to name insured plans; 

how to calculate the bond amount 

when multiple plans are covered under 

a single bond; whether the $1 million 

bond maximum applies in the case of 

plans that hold employer securities 

solely as a result of investments in 

pooled investment funds; and whether 

third party service providers are 

subject to the bonding requirements if 

they handle plan funds.• 

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.• 

requirement. The webcast, which will also feature a preview of the new 

electronic filing system, is on February 19 from noon to 2 p.m. (ET). 

This webcast will cover the new simplified annual reporting form for small 

plans with easy to value investments; expanded reporting by large plans of 

compensation received by plan service providers; realignment of the 

reporting rules for 403(b) pension plans subject to Title I of ERISA to make 

them on par with 401(k) plans; and annual reporting changes required by 

the Pension Protection Act for defined benefit pension plans and 

multiemployer plans. 

The modernized version of the ERISA Filing Acceptance System – known 

as EFAST2 – will receive only electronic filing submissions, provide quick 

responses to errors in a filing and publicly disclose filed Form 5500 reports 

through the EFAST web site. 

To register, visit the DOL/EBSA homepage and look under Compliance 

Assistance Workshops, Seminars and Webcasts. Additional webcasts and 

educational material will be made available throughout the year. 

2008 Form 5500 Annual Report 

On December 10, DOL/EBSA, the IRS and PBGC released the 2008 Form 

5500 annual return/report, schedules and related instructions. Obtain 

informational copies on the DOL/EBSA web site. 

Modifications to the Form 5500 for plan year 2008 are described under 

“Changes to Note” in the 2008 instructions. Significant changes include: 

•	 New actuarial schedules replace the Schedule B, Actuarial 

Information and must be used for plan year 2008 filing – Schedule 

MB, Multiemployer Defined Benefit Plan and Certain Money 

Purchase Plan Actuarial Information,and Schedule SB, SingleEmployer Defined Benefit Plan Actuarial Information. If the 

due date of the plan’s 5500 occurred before the 2008 forms were 

available for filing, the plan has an automatic extension until 90 days 

from December 10, 2008, to file a complete Form 5500. 

•	 Multiemployer defined benefit pension plans generally must file 

additional information as attachments to the Schedule R, 

Retirement Plan Information. Defined benefit plans of 1,000 or 

more participants must also include financial assets breakout 

information as an attachment to the Schedule R. 

•	 The voluntary simplified reporting option for certain plans with 

fewer than 25 participants at the beginning of the plan year will 

continue for the 2008 filings. 

Filers should monitor the EFAST web site for approved software vendors 

to complete the 2008 forms.• 

10 
Winter 2008 Retirement News for Employers 

 

Winter 2009 Retirement News for Employers 

Retirement News for Employers 

Retirement News for Employers 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 

Operating a retirement plan can be a time-consuming job. There are deadlines, 

not just for reports and forms but also for making contributions and giving 

information to participants. So to help you navigate the retirement plan timeline, 

here is a look at some of the important moments in the months to come. Please 

note that all of the filing dates below are for calendar-year plans – adjust the 

dates for noncalendar-year plans: 

MARCH 2 - Paper Forms 1099-R for 2008 distributions due to IRS. 

MARCH 15 

•	 Application of Waiver for 2008 Minimum Funding Standard for defined 

benefit plans due. 

•	 ADP/ACP distributions of 2008 excess amounts, with earnings, due to 

participants to avoid 10% excise tax. 

MARCH 16 

Note: The following usually are due on March 15, which falls on Sunday in 

2009.

 •	 Form 1042-S, Foreign Person’s U.S. Source Income Subject to

 Withholding and Form 1042, Annual Withholding Tax Return for

 U.S. Source Income of Foreign Persons, due to IRS to report

 retirement plan distributions and income tax withheld from distributions

 made to nonresident aliens.

 • 	 2008 corporate employer contributions due in order to take tax-

 deduction for 2008 (with no corporate filing extension).
 

MARCH 31 

Electronic filing of Forms 1099-R for 2008 distributions due to IRS. 

APRIL 1 

Required minimum distributions due to participants who turned age 701⁄2 in 2008 

for IRA and IRA-based plans and have not yet taken their 2008 distribution. 

For all other retirement plans, first required distribution for 5% owners turning

701⁄2 in 2008, and for non-5% owners who turned 701⁄2 in 2008, are retired and 

have not yet taken their 2008 distribution. 

APRIL 15 

•	 Deadline for returning 2008 participant deferrals in excess of $15,500 

($20,500, if 50 or older). 

•	 Deadline to establish an IRA for possible deduction in 2008. 

•	 First quarterly defined benefit contribution installment due for the 2009 

plan year. 

•	 2008 self-employed individual and partnership contributions due in order 

to take tax deduction (with no filing extension). 

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

Retirement Plans Community web page.• 

Department of the Treasury Publication 4278 (02-2009) 

Internal Revenue Service Catalog Number 37968B 

www.irs.gov 

11 
Winter 2009 Retirement News for Employers 

Timing is Everything
 

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

How much can I contribute to my IRA for 2008?  the lesser of: 

o your taxable compensation 

o or $5,000 ($6,000 if 50 or older) 

When must I make the contribution? 

By April 15, 2009 

Is my contribution deductible? 

If it is a Roth IRA – no 

If it is a traditional IRA – maybe 

See page 30 of the 2008 Form 1040 Instructions,

 page 29 of the 2008 Form 1040A Instructions. 

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-B (02-2008) 

Internal Revenue Service Catalog Number 47978D 

www.irs.gov