Posts Tagged ‘Protection’

Pension Protection Act of 2006: Text of H.R. 4, as Pa..

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Rollover roadblock: the IRS puts a snag in the Pension Protection Act’s provision allowing direct 401(k) rollovers to nonspouses.(Internal Revenue Service): … (The national gay & lesbian newsmagazine)

Rollover roadblock: the IRS puts a snag in the Pension Protection Act’s provision allowing direct 401(k) rollovers to nonspouses.(Internal Revenue Service): … (The national gay & lesbian newsmagazine)

This digital document is an article from The Advocate (The national gay & lesbian newsmagazine), published by Thomson Gale on March 13, 2007. The length of the article is 755 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

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Title: Rollover roadblock: the IRS puts a snag in the Pension Protect

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Pension Protection Act of 2006: Text of H.R. 4, as Pa..

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Credit Sentry – Identity Theft Protection Service

Credit Sentry – Identity Theft Protection Service
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Credit Sentry – Identity Theft Protection Service

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Underfunded Pensions, Pension Dumping, and Retirement Security: Pension Funds, the Pension Benefit Guarantee Corporation (PBGC), Bailout Risks, Impact … and the Pension Protection Act of 2006

Underfunded Pensions, Pension Dumping, and Retirement Security: Pension Funds, the Pension Benefit Guarantee Corporation (PBGC), Bailout Risks, Impact … and the Pension Protection Act of 2006

“Underfunded Pensions, Pension Dumping, and Retirement Security: Pension Funds, the Pension Benefit Guarantee Corporation (PBGC), Bailout Risks, Impact on the Federal Budget, and the Pension Protection Act of 2006,” part of the Government Series from TheCapitol.Net The Employee Retirement Income Security Act of 1974 (ERISA) provides a comprehensive federal scheme for the regulation of employee pension and welfare benefit plans offered by employers. The Pension Benefit Guarantee Corporation

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Pension Protection Act of 2006 (2006, Paperback), CCH

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Pension Protection Act of 2006 – Law, Explanation and Analysis

Pension Protection Act of 2006 – Law, Explanation and Analysis

CCH’s LAW, EXPLANATION AND ANALYSIS of the Pension Protection Act of 2006 provides the most comprehensive and practical guidance available to pension, tax and legal professionals needing to make sense and apply the changes enacted in this bill. CCH editorial staff, along with leading practitioners, provide clear and practical guidance on the many new rules in this timely reference, offering full coverage of all provisions, so pension plan administrators, benefits consultants and, tax and legal p

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The Data Protection Act and You and Them

The Data Protection Act and You and Them

Anyone with a fetish for figures will find The Data Protection Act 1998 (The DPA) a joy. It has eight principles, seven rights and six conditions. The intent of the legislation is to strike a balance between the conflicting interests of individuals and those who wish, for valid and lawful reasons, to store and use personal information. It does this by giving rights to the individual with regards to information held about them and places obligations on those who retain that information and process it.

From the point of view of email marketing, it is best to start with the obligations, a breach of which could well result in prosecution.

Whilst the wording of The DPA is, unusually, fairly straightforward, definitions are often general and can be subject to interpretation. However, one requirement is very clear: if your business includes the processing of personal information then you are required to conform to the requirements of The DPA. But there is no need to be daunted as the obligations are reasonable and do not limit good business practice to any great extent.

It is good advice to seek advice from those trained in The DPA and this document should be treated as an introduction only and not relied on as definitive.

The first definition one must crack is that for personal information. This is data about living, identified or identifiable individuals and includes facts and opinions. Both customers and employees are covered under The DPA.

Exemptions are few and can include information for accounting or auditing, pensions and insurance administration.

If you process personal information the eight principles of good practice requires the data to be:

•    fairly and lawfully processed,
•    processed for limited purposes,
•    adequate, relevant and not excessive,
•    accurate and up to date,
•    not kept longer than necessary,
•    processed in accordance with the individual’s rights,
•    secure
•    not transferred to a country outside the EEC unless it has adequate protection for the individual.

For the information to be fairly processed one of the following conditions must apply:

•    there has been explicit consent from the individual to the processing
•    it is required by law to process the information for employment  purposes or some other legal requirement
•    processing is required to protect the vital interests of the individual
•    processing is required to carry out public functions
•    processing is required in order to pursue the legitimate interests of the data controller or third parties although this does not apply if it could unjustifiably prejudice the interests of the individual

Special provisions apply to sensitive data, including racial or ethnic origin, political opinions, religious or other beliefs, trades union membership, physical or mental health conditions, sex life, criminal proceedings or convictions.

At first glance the obligations of The DPA can seem daunting but the provisions are more or less what good practice would dictate when sending out your email marketing. It is difficult to argue against words such as fair, limited, accurate, secure and necessary.

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Pension Protection Act Defines Three Types of Managed 401(k) Providers

Birmingham, MI (PRWEB) October 12, 2006

The Department of Labor (DOL) recently came out with the first of a series of clarifications related to the Pension Protection Act (PPA). The initial clarification was associated with “safe harbor” investments related to auto-enrollment. Companies can safely auto enroll 401(k) account holders into a blended fund, a time-dated fund, or a professionally managed account.    

For the most part, this first ruling, which many believed was already underway pre-PPA, was well received. In fact, a recent survey of corporate chief financial officers by Financial Executives International and Baruch College in New York showed that 28% of CFO’s surveyed said they have made or plan to make changes based on the law’s provisions.

Interestingly, the Pension Protection Act as it relates to the 401(k)/403(b) is a culmination of a variety of services that have been evolving since early 2001. Many companies have been providing employees with professionally managed accounts as well as implementing auto enrollment for many years.

Prior to the signing of the Pension Protection Act Plansponsor magazine reported, “…a growing number of employers are embracing the notion of automatically enrolling eligible employees who don’t sign up for their 401(k) on their own (more than 14% of plans now do this, including 22.7% of large employers)” (August 2006).    

While many of the features in the Pension Protection Act have been available for many years, it has helped define three distinct types of managed 401(k)/403(b) providers:

“Mass market” solutions that seem to focus on auto enrollment and provide little if any face-to-face contact with employees. This group includes companies like Morningstar and Financial Engines.

“Cross selling” solutions that provide a managed account service along side other financial services like proprietary mutual funds, insurance products, annuities, and IRA’s. The PPA dictates this group use a “computer model” to create portfolios and that all conflicts of interest are disclosed in an easy-to-understand format.

“Personal Account Management” solutions that have a singular focus (don’t cross-sell other products) and provide personal face-to-face contact, hand-holding, annual reviews, proactive communications, etc.

Each type of service fills different needs. For example, a company with 150K employees may feel the “mass market” solution would work best for them, and a small company with 10 employees may like the idea of a financial adviser helping with the 401(k) as well as providing other services. Medium-sized companies with 700 to 10,000 employees seem to gravitate to a singularly focused, personal account management solution like Actium LLC’s BeManaged service.

Some managed 401(k) providers are questioning the “auto-enrollment into a managed account” model due to the lack of communication between the 401(k) participant and the managed 401(k) provider. “The strength of the managed 401(k) is being able to manage someone’s account based on their unique financial situation. If you remove two-way communication via auto-enrollment, how can one effectively manage someone’s 401(k) account?” asks Jeff Sinatra, Chief Operating Officer of Actium, a Managed 401(k) provider.

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Estate: Pension Protection Act: How It Affects You

Estate: Pension Protection Act: How It Affects You

The Pension Protection Act was recently passed by Congress and signed into law. It is “the most sweeping reform of America’s pension laws in over 30 years.” Whether you’re retired or still laboring to build your nest egg, the Pension Protection Act (PPA) will affect you. Read on to find out how.

For those still working, the PPA forces a company to fully fund its defined-benefit pension obligations, meaning a company can’t promise benefits they can’t pay. While this will make existing pension programs stronger, it will also decrease the number of companies offering pensions to their employees.

The PPA also makes permanent the increased contribution limits that were passed in 2001. That means that employees will continue to be able to set aside greater amounts in their 401(k) and their IRA. It means that those over 50 years old will continue to have a ‘catch-up’ provision that increases their contribution limits.

One change in particular, though, has the potential to save families tens, if not hundreds, of thousands of dollars. It is the provision that will allow a non-spouse beneficiary to ‘roll’ money out of a 401(k) and into an IRA. Let me explain.

Recently, I was contacted by a reader. He was inheriting the money out of his deceased father’s 401(k). In the past, this would mean that he would have to take all the money out and pay taxes on it. When money comes out of a 401(k) it is taxed just like your salary or wages. If there was 0,000 in the 401(k), he was going to be taxed as if he had a job making over 0,000 that year. He would end up losing as much as 1/3 of it to taxes. Imagine finding out you were going to inherit 0,000 only to learn that over 0,000 of it would be lost to income taxes!

If the reader was inheriting that money from his father’s IRA instead, he wouldn’t have to pay any of those taxes right away. When someone dies, money from his/her IRA can be rolled to an ‘inherited IRA’ and continue to grow tax-deferred. This is referred to as ‘stretching’ the IRA.

If the person inheriting the IRA was in their 30′s, this ability could turn a ,000 IRA into one worth several million dollars over their lifetime. The impact of this cannot be understated. Yet it couldn’t be done with a 401(k) unless your spouse was the beneficiary. Thanks to the new Pension Protection Act, now you can!

There are some specific rules that must be followed. First, the distribution must occur after January 1, 2007. If the company is willing to wait until after that date, my reader will be able to roll his dad’s 401(k) money to an IRA and avoid the taxes.

Second, the money can’t be added to an existing IRA. You have to set up a new inherited IRA. The inherited IRA must be in the same name and have the same beneficiaries as the 401(k) account that is being rolled into it.

Third, this can only be done if the beneficiary of the 401(k) is a real person. For instance, it is an option if your children are the beneficiaries, but isn’t an option if your ‘estate’ or a trust is the beneficiary because an ‘estate’ is not a real person.

Fourth, the transfer must be done by direct rollover. This means that the money must move from the 401(k) directly into an IRA. So if the company wants to send a check to you, it must NOT be made payable to you. It should be payable to the inherited IRA.

Unfortunately, banks and other 401(k) providers aren’t up to date on these new provisions, so don’t be discouraged if they tell you it can’t be done. Because just having one detail out of place can negate an inherited IRA, consult your CPA to make sure the details are handled correctly.

For those who have existing 401(k)s, verify who your beneficiaries are and make any necessary changes. Choose actual people, instead of trusts or estates. And in your important papers, make sure to inform your heirs they have the option to stretch that money in an inherited IRA.

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