900 N. Kings Highway, Cherry Hill, New Jersey 08034
856.667.4100 ·
215.563.0276 ·
Fax: 856.667.3652
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Business Tip |
If your company has a retirement plan, an important deadline is approaching.
By the end of the 2001 plan year, you must amend your qualified retirement plan to comply with various tax law
changes that have taken place since 1994. This includes all qualified plans, such as 401(k)s, pension plans, and
profit sharing plans.
If your plan is not revised as required, it will lose its "qualified" status (all of its tax benefits).
This could result in the retroactive taxation of plan earnings, the loss of deductions for your plan contributions,
and the loss of tax-favored benefits for your employees. Also, rollovers from your plan to IRAs and other plans
could be retroactively disallowed.
Many small businesses have a "prototype plan" sponsored by a bank, insurance company, or other financial
institution. If this is the case for your company, you may simply have to fill out and return an amendment form
provided by your plan sponsor.
Don't assume you'll automatically receive a form in the mail. Perhaps you've moved your plan assets, or your original
sponsor has merged with another company. If your amendment papers haven't arrived, contact your current plan sponsor
about their status.
Make amending your plan a high priority. Contact us or your plan
sponsor for details.
