Distributions - misc (BenefitsLink.com)Headlines re Distributions - misc, gathered by BenefitsLink.comGuidance Overview New IRS Guidance on Distribution-Related Provisions of PPA (PDF)- (Found July 8, 2008 ) 3 pages. Excerpt: "The Internal Revenue Service recently issued Notice 2008-30, which provides guidance on certain distribution-related provisions of the Pension Protection Act of 2006 that became effective in 2008. The guidance provides valuable answers on several issues that affect all qualified defined contribution and defined benefit plans." (Aspen Publishers via Winston & Strawn LLP)http://www.winston.com/siteFiles/publications/Boling_EBPR_June2008.pdf Guidance Overview Latest IRS Guidance Addresses PPA '06 Provisions Related to Distributions- (Found July 8, 2008 ) Excerpt: "Internal Revenue Service (IRS) Notice 2008-30 uses a question-and-answer format to provide guidance with respect to certain distribution-related provisions of the Pension Protection Act of 2006 (PPA'06) that become effective in 2008. The Notice includes guidance on rollovers to Roth individual retirement accounts (IRAs), the Qualified Optional Survivor Annuity (QOSA) and interest assumptions for lump-sum distributions. Although the payment of gap-period earnings on distributions..http://www.segalco.com/publications/compliancealert/052008.html OPM Halts Work on Retirement Calculator- (Found July 8, 2008 ) Excerpt: "The Office of Personnel Management sent a 'stop work' letter to the contractor developing a software system to calculate retirement benefits for federal employees, officials said yesterday. The contractor, Hewitt Associates, was given 10 days to propose a remedy for flaws and defects uncovered by the OPM during tests of the benefits calculator. Only five of 61 functions worked as intended during recent testing." (The Washington Post; free registration required)http://www.washingtonpost.com/wp-dyn/content/article/2008/05/29/AR2008052903866.html More Investors Tapping Retirement Funds Putting their Long-Term Financial Health at Risk- (Found July 8, 2008 ) Excerpt: "The number of investors hitting up their retirement accounts appears to be on the rise. The Transamerica Center for Retirement Studies reports that the number of workers with loans outstanding on retirement accounts, such as 401(k) plans, rose to 18 percent in 2007 from 11 percent a year earlier. Anecdotal reports from financial advisers have also shown increases." (AP via The Washington Post; free registration required)http://www.washingtonpost.com/wp-dyn/content/article/2008/06/28/AR2008062800210.html Guidance Overview IRS Private Letter Ruling Allows IRA Beneficiary to Take Distributions Over Her Lifetime- (Found July 8, 2008 ) Excerpt: "In the private letter ruling, the IRS stated that 'the issue to be addressed is whether the failure to timely take certain required distributions requires that distributions from either IRA X or IRA Y (or both) be made in accordance with the five-year rule of Code section 401(a)(9)(B)(ii).' IRS ruled that the answer was no." (Financial Planning)http://www.financial-planning.com/asset/article/613061/saving-stretch.html Anheuser-Busch to Cut Health and Pension Benefits for Salaried Employees- (Found July 8, 2008 ) Excerpt: "The nation's biggest brewer laid out its benefit-cut plan in a memo . . . . The memo says employees' individual, lump sum payouts under the pension plan will be reduced by approximately 5 percent to 6 percent in 2009 and approximately 15 percent by 2012. Workers also will make a bigger contribution to their health insurance plan, rising from approximately 21 percent today to 25 percent of the cost beginning in 2009." (AP via Forbes.com)http://www.forbes.com/feeds/ap/2008/06/30/ap5169785.html When Credit Gets Tight, a 401(k) Loan Becomes Tempting- (Found July 8, 2008 ) Excerpt: "This year, word got out about a Visa debit card aimed at people who wanted to borrow money from their 401(k) accounts. With plastic in hand, they could withdraw the funds from an A.T.M. or spend them at any merchant that accepted Visa, just as they could with a regular bank debit card. The response from normally placid retirement experts was fury so passionate that it actually made you laugh." (The New York Times; free registration required)http://www.nytimes.com/2008/07/05/business/yourmoney/05money.html?partner=rssuserland&... New Funds Can Provide Payments in Retirement- (Found July 8, 2008 ) Excerpt: "Managed-payout mutual funds aim to provide regular income payments through a professionally managed, diversified portfolio." (The Dallas Morning News)http://www.dallasnews.com/sharedcontent/dws/bus/personalfinance/stories/070708dnbusperfi.4... Opinion Congress Might Make It Easier for People to Dip Into Their 401(k)s- (Found July 8, 2008 ) Excerpt: "Instead of a quick-fix, Congress should be looking for a long-term solution to the mortgage crisis one that today's homeowners won't regret 20 years down the road." (Pension Rights Center)http://www.pensionrights.org/news/perspectives/2008/07/cashed-out-congress-might-make-it-e... Why Don't the People Insure Late Life Consumption A Framing Explanation of the Under-Annuitization Puzzle (PDF)- (Found July 8, 2008 ) 12 pages. Excerpt: "Rather than attempting to rationalize the lack of annuity demand, this paper explores the idea that aversion to annuities is not a fully rational phenomenon. A large literature has documented behavioral biases in a wide range of activities that are important steps in the process of planning for retirement, including whether to participate in employer sponsored pension plans, how much to save, and how to allocate one's portfolio. To the extent that individuals exhibit...http://www.tiaa-crefinstitute.org/research/dialogue/docs/April2008.pdf |