Heartland Consulting Group, Inc.

Plan Document Restatements

Since 2001, several pieces of legislation have modified our prototype and volume submitter plan documents, requiring a full restatement (or rewriting) of these documents and their adoption by our clients. The restated documents will include provisions relating to the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) and the Job Creation and Worker Assistance Act of 2002 (JCWAA), as well as the regulations and guidance published by the IRS in its’ 2004 Cumulative List. Heartland has received IRS approval of these documents and are contacting each of our clients for the timely update of their adoption agreements. Should you have any questions regarding this issue, please contact your Heartland consultant for discussion.

Final 403(b) Regulations

After four decades, the IRS issued extensive regulations in July, 2007 which replace the original 403(b) rules from 1964. The new legislation is generally effective for plan years beginning after December 31, 2008. Some of the changes include:

Written Plan Document Requirement
Ability to Terminate a 403(b) Plan
Elective Deferral Contributions and Limits Tied to 401(k) Definition
Disallowance of New Incidental Life Insurance in 403(b) Plan
Relaxed In-service Transfer Rules (90-24 Transfers)
New Aggregation Rules to Determine Controlled Groups
Ability to Distribute Benefits upon Severance of Employment

Pension Protection Act

The Pension Protection Act (PPA) was signed into legislation on August 17, 2006. Some of the many changes include:

1. EGTRRA Permanency
2. Changes in ADP/ACP Calculations and Testing
3. Qualified Default Investment Arrangements
4. Automatic 401(k) Enrollment Changes
5. Extends Top-Heavy Vesting to all Non-Elective Contributions
6. Rollovers for Non-spouse Beneficiaries
7. Participant Benefit Statement Requirements
8. Form 5500-EZ Filing Threshold Increase to $250,000
9. New Investment Advice Rules
10. Divestiture of Employer Stock
11. Mapping of Investments and 404(c) Relief
12. In-Service Distributions in Pension Plans at Age 62
13. Rollovers from Qualified Plans to Roth IRAs
14. Defined Benefit / 401(k) Plan Combination Beginning in 2010


		Plan Document Restatements Since 2001, several pieces of legislation have modified our prototype and volume submitter plan documents, requiring a full restatement (or rewriting) of these documents and their adoption by our clients. The restated documents will include provisions relating to the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) and the Job Creation and Worker Assistance Act of 2002 (JCWAA), as well as the regulations and guidance published by the IRS in its’ 2004 Cumulative List. Heartland has received IRS approval of these documents and are contacting each of our clients for the timely update of their adoption agreements. Should you have any questions regarding this issue, please contact your Heartland consultant for discussion. Final 403(b) Regulations After four decades, the IRS issued extensive regulations in July, 2007 which replace the original 403(b) rules from 1964. The new legislation is generally effective for plan years beginning after December 31, 2008. Some of the changes include: Written Plan Document Requirement Ability to Terminate a 403(b) Plan Elective Deferral Contributions and Limits Tied to 401(k) Definition Disallowance of New Incidental Life Insurance in 403(b) Plan Relaxed In-service Transfer Rules (90-24 Transfers) New Aggregation Rules to Determine Controlled Groups Ability to Distribute Benefits upon Severance of Employment Pension Protection Act The Pension Protection Act (PPA) was signed into legislation on August 17, 2006. Some of the many changes include: 1. EGTRRA Permanency 2. Changes in ADP/ACP Calculations and Testing 3. Qualified Default Investment Arrangements 4. Automatic 401(k) Enrollment Changes 5. Extends Top-Heavy Vesting to all Non-Elective Contributions 6. Rollovers for Non-spouse Beneficiaries 7. Participant Benefit Statement Requirements 8. Form 5500-EZ Filing Threshold Increase to $250,000 9. New Investment Advice Rules 10. Divestiture of Employer Stock 11. Mapping of Investments and 404(c) Relief 12. In-Service Distributions in Pension Plans at Age 62 13. Rollovers from Qualified Plans to Roth IRAs 14. Defined Benefit / 401(k) Plan Combination Beginning in 2010