| Test Your Human Resources Knowledge | ||
|
| Labor Law Journal Submissions | ||
|
| Labor Arbitrators' Awards and Biographies | ||
5500 Preparer's Manual for 2012 Plan Years
The premier resource in the field of Form 5500 preparation, 5500 Preparer's Manual will help you handle the required annual Form 5500 filings for both pension benefits and welfare benefit plans.
The American Bar Association Section of Taxation and a group of 96 law firms have asked the IRS and Treasury to push back until January 1, 2009 the deadline for deferred compensation plans to comply with “all aspects” of the final Code Sec. 409A regulations (CCH Pension Plan Guide ¶24,508O) and, at the same time, extend the good faith compliance period to December 31, 2008. The final regulations, issued in April 2007, required compliance by January 1, 2008. Notice 2007-78 (CCH Pension Plan Guide ¶17,13 ), issued September 10, 2007, extended the deadline for documentary compliance until the end of 2008, but did not otherwise postpone the 2007 year-end deadline for compliance with the final regulations.
In its letter, dated September 21, 2007, the ABA Section of Taxation noted that, even with the relief provided in Notice 2007-78, there is insufficient time to finalize in a thoughtful and careful manner the required operational and form compliance by year end. “Not only are employers having difficulty integrating the time into the other business priorities of their human resources, tax, legal and accounting personnel necessary to devote the required attention to this undertaking, but their outside professionals (primarily counsel and consultants) are having similar difficulties,” said the letter.
The ABA emphasized that, as a practical matter, because of the need in many cases to obtain both internal approvals (e.g., from boards and compensation committees) and required employee consents to any operational, time and form of payment or other required changes by December 31, 2007, decisions as to these changes must be made well in advance of that deadline, which it said, may be beyond the capacity of most employers. According to the ABA, the issues involved in obtaining employee consent alone provide a “compelling example” as to why the 2007 year-end operational and form deadlines are unworkable.
The group of 96 law firms similarly noted the multiple steps needed to comply with Code Sec. 409A and the insufficient period available for thorough compliance. Both groups remarked on the lack of professionals available to provide advice on the issues. The law firms indicated that a six-month extension may be sufficient for some employers, but that a full-year extension would provide the most significant one-time benefit to achieve compliance.
For more information on this and related topics, consult the CCH Pension Plan Guide.
Visit our News Library to read more news stories.
©2005-2024 CCH Incorporated or its affiliates
