PPC's Guide to Small Employer Retirement Plans gives practical guidance and more than 130 practice aids so you are confident in helping small business clients with all of their qualified plan needs—from choosing the best plan for them to terminating a plan—and everything in between. It covers plans typically sponsored by small businesses: profit-sharing plans, 401(k) plans, SEPs, SARSEPs, SIMPLE IRA plans, payroll deduction IRAs, and defined benefit plans.

This Guide provides step-by-step guidance and examples that illustrate various plan types and designs. Use it to gain a better understanding of how the contribution and deduction limits are related and how the limits affect your clients’ plans. Numerous worksheets are provided to help you complete the testing for your small business clients accurately and efficiently. This Guide will also keep you on top of newly released guidance in the area of compliance for small employer plans.

Audit activity has greatly increased in the plan area.
The IRS is aggressively conducting targeted plan audits. This Guide keeps you informed of what the IRS and DOL are looking for and how they will use this information. The IRS is also focused on service provider audits and the DOL will focus on service provider data integrity. Identifying systemic errors such as the processing of loans and loan defaults will be one focus in the IRS initiative. This Guide identifies 11 other top audit issues and includes what you need to keep your clients in compliance. This Guide is a must for dealing with DOL and IRS compliance matters. Use it to help your clients take advantage of IRS correction programs.

Hot Topics Covered in the Current Edition:

• Determination Letter Updates. Sweeping changes have been made to the determination letter process, including which plans may request a determination letter and the application process. This edition has been completely updated for these changes as well as for the conditions for reliance on opinion and advisory letters.
• Cross-tested Plans. Cross-tested plans can allow for additional flexibility in determining contribution allocations, and is also a good way for plans to meet nondiscrimination requirements. This edition includes updated guidance and examples to illustrate the benefits of cross-testing.
• Participant Disclosures. The first disclosures under the DOL's participant fee disclosure regulations are due to participants in 2012. Plan administrators need to be aware of their fiduciary responsibility and what disclosures they will need to provide participants, when they must be provided, and in what form they can be disclosed.
• Bankruptcy Protection. Bankruptcy protection of retirement assets is an important issue. This edition includes an update on bankruptcy protection in light of the revised determination letter program.
• Qualified Nonelective Contributions. The IRS has issued new guidance on the use of forfeiture accounts for qualified nonelective contributions to correct for nondiscrimination failures. How the IRS restrictions affect the Voluntary Corrections Program is clarified.
• Electronic Disclosure Guidelines. With all of the notices and disclosures required to give participants, employers are looking to streamline and provide the information electronically. New guidance is provided on how to electronically provide the PPA Benefit Statements and the Participant Fee Disclosures.
• Fiduciary Duty. There continue to be cases brought by participants against plan fiduciaries. This chapter has been updated with discussions on several new cases; some ruling in favor of the fiduciaries and some against. Fiduciaries should be aware of the issues and how the courts are viewing them.
• Frozen Plans. Several types of plan freeze options are available, depending on the employer’s goals for the plan. This edition discusses the options available and the importance of planning ahead before freezing a plan, as frozen plans are not terminated plans and must continue to meet plan qualification requirements.