Fee Disclosure Under 408(b)(2) Delayed to 1/1/2012

The U.S. Department of Labor's Employee Benefits Security Administration (EBSA) has delayed by six months the applicability date of its new 408(b)(2) fee disclosure rules.

An EBSA news release said the setting of the new January 1, 2012 date was designed to give regulators more time to consider suggestions to its interim final rule that was published July 16, 2010.

IRS Comprehensive Checksheets for SIMPLE's, SEP's and SARSEP's

These detail IRS checksheets should be of help to your clients in determining if their SIMPLE, SEP or SARSEP plans are okay.  We would venture to say that the majority of plans are NOT being run properly.

SIMPLE checksheet

SEP Checksheet

SARSEP checksheet

Plan Sponsors Must Get and Analyze Fee Disclosures by July 16, 2011

Each vendor (recordkeeping financial institution, advisor/RIA, broker-dealer, TPA, etc.) to a retirement plan must make a full disclosure under Regulations 408(b)(2) of services and the related fees.  The Plan Sponsor must then determine if such fees are reasonable.  This must all be accomplished by July 16, 2011.

How can a Plan Sponsor determine if the fee being charged by a vendor is "reasonable"?  Only by securing quotes from other vendors.  Denis Wheatley (an RIA) in partnership with Plan Design Consultants, Inc. (a TPA firm that has been around for 36 years) can secure several quotes from various recordkeeping platforms and help do a comparison to the current vendor.

See an entertaining cartoon character video on YouTube regarding this process. 

YouTube video on comparative service

If any of your accounting clients sponsors a retirement plan and would like to have this comparative service provided at no obligation, please contact Denis Wheatley - see the bar on the right of this blog.