Plan Efficiency Webinar With Crews Nov 09

Tips For Year End Preparation With Your 401(k) Plan

November 20, 2009

Your Presenters Linda Lauer – Thompson Dunavant Employee Benefit Plan Services Jeff Barnes – Barnes Retirement Plan Specialists, Inc. John Crews – Burleigh Consulting Group 2

You May Be A Fiduciary If You…  Have implementation authority to adopt, amend, merge, freeze, or terminate a plan  Have decision-making authority in the selection and retention of plan fiduciaries  Give investment advice with respect to plan assets for compensation  Make discretionary decisions under the plan such as whether a hardship withdrawal may be made, etc.  Select plan providers – Investment platforms, record-keepers, TPAs, brokers, etc. 3

Today’s Focus  December 31st deadlines for Plan Document changes  Maximizing deferrals for the highly compensated  Employee notifications and disclosure deadlines  What to expect in 2010  More efficient enrollment processes  Annual Plan Reviews 4

Document Changes  Pension Protection Act of 2006  EGTRRA  Amendments (ie. Safe Harbor Plans)  New plan feature  Eliminating Safe Harbor  ADP/ACP Testing  Top Heavy Issues

Maximizing Deferrals  Traditional 401(k) Plans  Safe Harbor Plans  How to help the business owner (partnerships/sole proprietors)

Year End Employee Notices  Annual Automatic Contribution Notice  Safe Harbor Notice  QDIA Notice  Company Stock Diversification Notification  Required Minimum Distributions

What to expect in 2010  Plan Limits  Schedule C Changes  5500 changes – Electronic Filingeffective with 2009 Form 5500 due July 31, 2010 (October 15, 2010)

Plan Limits  Plan limits for 2010 – apply to 401(k) and 403(b) Plans  No changes – same as 2009  $16,500 for 401(k) deferrals  $5,500 for catch up contributions  Plan Doc governs limits. Check maximum percentage as allowed by your plan document.  Also, applies to all 401(k) Plans. 9

Schedule C Changes  Direct and indirect compensation  Includes: fees or expense reimbursement payments charged to investment funds  Investment fund examples include:  Mutual funds  Common/collective trust funds  Pooled separate accounts  Separately managed investment accounts 10

Schedule C Changes  Fund brokerage commissions (including 12b-1 fees)  Fees related to the administration of the plan such as record keeping fees  Fees not reportable include ordinary operating expenses such as attorneys fees, accountants fees, printing fees, etc.

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Enrollment Efficiency  Order new booklets now (if you haven’t already)  Consider ACA  Utilize tools available from service providers  On-line enrollments  Video/Webinars

 Establish procedures for processing and filing of enrollment & beneficiary forms

Enrollment Efficiency  Consider independent enrollment providers  Consider surveys  Document  Pay attention to the process looking for ways to improve efficiency and education to employees

Annual Review  Meeting minutes reviewed  Benchmarks  Participation rates compared to previous plan year  Deferral rates compared to previous plan year  Overall plan performance to benchmarks

 Investment Review  Plan design discussion

Closing If you are interested in receiving a copy of the presentation, please visit:

www.barnesretirement.com Securities and investment advisory services offered through Financial Telesis, Inc. Barnes Retirement Plan Specialists, Inc. and Financial Telesis, Inc. are not affiliated

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