News Highlights
Check Out Our Retirement Blog
Jul 3, 2008
Looking for the latest information on Retirement Plans? Do you want the information summarized in brief, informal articles? Need a way to post a question for various thoughts and opinions on matters? Then visit us at our Wells Thomas, LLC Retirement Plan Blog at http://wellsthomasllc.blogspot.com/ . Feel free to leave a comment or question, browse the artcles and look for information on upcoming educational meetings and marketing opportunities...
AMERICAN FUNDS PLAN PREMIER
Jun 3, 2008
We are pleased to announce that Wells Thomas, LLC has been named an approved TPA for the multi-fund product being offered by American Funds on July 1, 2008. The American Funds PlanPremier TPA program will allow for greater diversification of investments, with the low-cost and high quality you've come to expect from American Funds.
More information will be available as the launch date of July 1, 2008 approaches.
NATIONWIDE PINNACLE PPA
Jun 3, 2008
We are pleased to announce that once again Wells Thomas, LLC has been named a Pinnacle PPA with Nationwide. This distinction provides our office with more direct support with Nationwide, as well as advance insight into systems and products to be released in the coming year.
For more information, check our our Blog on the 'LINKS' page of this site.
No News Is Good News
May 14, 2008
The proposed state-run 401(k) Plan (CT SB No 652) failed to pass as the session ended before it came up for a vote in the House. For more information on this, please visit our blog, which can be accessed on our LINKS page to the right of this screen.
CT Proposes State Run 401(k) Plans
Mar 12, 2008
A bill was presented to the Connecticut Commerce Committee on Tuesday, March 11, 2008. SB No. 652 'AN ACT CONCERNING SMALL BUSINESS RETIREMENT PLANS', would allow the Comptroller to establish and administer a retirement plan that will be available to small employers and individuals. Because of the complex nature of 401(k) plans, along with the potential liability the State could incur by becoming a Fiduciary of these retirement plans, Sean Thomas of Wells Thomas, LLC testified before the committee in opposition of this proposed bill. Sean, along with other TPA firms in Connecticut, and representatives of ASPPA, attended the hearing and presented numerous reasons for their opposition to this bill.
Though we applaud the state for recognizing the need to make small companies in Connecticut aware of the need to plan for retirement on behalf of all employees, we feel the proposed measure was not a viable solution.
To see a full copy of the testimony Sean presented, click on "Links" on the right hand side of the screen, and then click on Wells Thomas, LLC Blog.
DOL PROPOSES DEPOSIT TIMING REGULATIONS
Mar 6, 2008
Proposed Regulations
The proposed regulations are intended to provide small plan sponsors with a clear safe harbor to ensure compliance with the deposit standards. Under the proposed safe harbor, participant contributions to a pension or welfare benefit plan with fewer than 100 participants at the beginning of the plan year will be treated as complying with the regulations if the contributions are deposited no later than the 7th business day following the day on which the amounts would have been payable to the participant in cash or following the day on which such amount is received by the employer (in the case of a participant loan payment given to the employer). As a safe harbor, contribution deposits satisfying the requirements of the proposed regulation will be treated as having been made timely even if such contributions could clearly have been segregated from employer assets more rapidly.
IRS Releases 2008 Limits
Oct 19, 2007
The IRS has released the 2008 Inflation Adjustments, which have limited impact on Defined Contribution Plan limits.
- The Annual Compensation limit has increased from $225,000 in 2007 to $230,000 in 2008
- The Taxable Wage Base has increased from $97,500 to $102,000
- The 401(k) and 403(b) limits have remained unchanged from 2007, with the maximum contribution at $15,500
- Those age 50 and over in 2008 may make Catch-Up 401(k) contributions with the limit remaining the same from 2007 at $5,000
- The Annual Contribution limit (total of all sources( has increased from $45,000 in 2007 to $46,000 in 2008
We will be sending notices to all of our clients of these changes in limits so that participants may be informed timely.
2004 Form 5500 Notices
Sep 28, 2007
2004 Form 5500 Notices - IRS is mailing delinquency notices in order to update and correct the IRS' records, and to allow nonfilers to become compliant. In some cases, a 2004 form was not required, or had been filed correctly and timely. "We recognize that some of these notices will be received by employers that fully complied with their Form 5500 or Form 5500-EZ filing obligations..."
The following was included in the latest edition of the Employee Plans News, on page 11 (of 12):
In February 2007, the IRS began mailing Taxpayer Delinquency Investigation
(TDI) Notices to employers that failed to timely file Forms 5500 and 5500-EZ for the plan year ending December 31, 2004. The first delinquency notice, CP 403, is normally sent 15 months after an employee plan return was due. The second delinquency notice, CP 406, is sent 15 weeks after the issuance of the CP 403 if the filer did not respond with a completed return or an acceptable explanation as to why it did not need to file a return.
For several years prior to 2007, the IRS had suspended mailing TDI notices.
The reinstatement of these notices is allowing us to obtain missing returns and allowing nonfilers to become compliant. In addition, the responses received to the notices have helped identify and correct EIN, plan number, and return posting discrepancies, and update records.
We recognize that some of these notices will be received by employers that fully complied with their Form 5500 or Form 5500-EZ filing obligations and we ask that these employers allow us to correct our records by responding to the notice as requested.
Electronic Filing of Form 5500 Postponed
Jun 11, 2007
On May 25, 2007 the Employee Benefits Security Administration (EBSA) announced that the requirement to file the Form 5500 series electronically will take effect for plan years beginning on or after January 1, 2009, rather than January 1, 2008 as previously announced. Further details will be provided as they are released from the EBSA.
Wells Thomas, LLC
May 30, 2007
Effective June 1, 2007, Wells, Lamoriello has changed its name to Wells Thomas, LLC.