Benefit Plan Update from Miller Cooper & Co.
February 2010
In this issue:
Retirement Plan Limits for 2010
"Large" 403(b) Plans' New Requirements
Small Plans and Contribution Transfers
Miller Cooper's Plan Audit Team Qualifications
Retirement Plan Limits for 2010
| 401(k) | Simple, 408P | 457 | 403(b) | |
| Maximum employee contribution | $16,500 | $11,500 | $16,500 | $16,500 |
| Catch up (age 50+) | $5,500 | $2,500 | $5,500 | $5,500 |
| Annual compensation limit | $245,000 | $245,000 | $245,000 | $245,000 |
| Contributions not exempt from: |
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| Contributions exempt from: | Federal and state tax | Federal and state tax | Federal and state tax |
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“Large”
403(b) Plans Subject to New Requirements in 2010
Beginning with the filing of the 2009 Form 5500, retirement plans sponsored by charitable organizations and schools under IRS section 403(b) are subject to the same reporting requirements as 401(k) plans. Specifically, ERISA-covered 403(b) plans which have 100 participants or more are required to file audited financial statements with the 2009 Form 5500 filing. For those 403(b) plans with less than 100 participants, abbreviated forms without the audited financial statements will need to be filed.
Small Plans Receive Clarification on Contribution Transfers
Effective January 14 of this year, the DOL has adopted final regulations on transmitting contributions for plans with fewer than 100 participants at the beginning of the plan year. The new rules state that contributions be deposited with the plan no later than the 7th business day following the day the amount is received by the employer (the day the amount was payable to the employee). The contribution is considered deposited when it is placed in the plan account, whether or not it has been allocated to specific participants or investments.
Choose an Experienced Firm for Your Plan Audit
Miller Cooper’s Employee Benefit Plan Audit Group is one of the leading providers of audit services to benefit plan sponsors. As you make your decision on a benefit plan audit provider, consider some important reasons why Miller Cooper is the best choice:
We audit 120+ benefit plans annually, making us one of only 48 firms in the U.S. that audit in excess of 100 benefit plans per year. Our audited plans range in size from 100 – 10,000 participants.
More than 25 professional staff members are dedicated to the Employee Benefit Plan Group. Each member averages 10 hours of CPE each year dedicated to employee benefit plan audit quality and process.
Miller Cooper is a member of the AICPA’s Audit Quality Center for Employee Benefit Plans, which requires additional Peer Review procedures for benefit plan audits. Additionally, we successfully underwent a recent Department of Labor (DOL) inspection and we receive a Peer Review every three years.
Our quality review is performed by a Principal solely dedicated to technical matters and quality review.
For more information, please contact one of our Employee Benefit Plan Audit Principals. You can also call us at 847-205-5000.
Kristen Fitzpatrick, CPA, Principal
1751 Lake Cook Road, Suite 400, Deerfield, IL 60015 500 West Madison St., Suite 3350, Chicago, IL 60661
In conformity with U.S. Treasury Department Circular 230 tax advice contained in this communication and any attachments is not intended to be used, and cannot be used, for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code, nor may any such tax advice be used to promote, market or recommend to any person any transaction or matter that is the subject of this communication and any attachments. The intended recipients of this communication and any attachments are not subject to any limitation on the disclosure of the tax treatment or tax structure of any transaction or matter that is the subject of this communication and any attachments.