The Internal Revenue Service (IRS) recently released Notice 2009-67, Adding Automatic Enrollment to SIMPLE IRA Plans – Sample Amendment. Notice 2009-67 facilitates automatic enrollment by providing a sample plan amendment that a prototype sponsor of a SIMPLE IRA plan (using a designated financial institution) can use in drafting an amendment to add an automatic contribution arrangement to the SIMPLE IRA plan. The IRS plans to issue a revised Form 5305-SIMPLE, Savings Incentive Match Plan for Employees of Small Employers (SIMPLE) — for Use With a Designated Financial Institution, that includes an automatic contribution arrangement.
Contact Vision Payroll if you have any further questions on Notice 2009-67.
The Treasury Department recently released the following statement by Treasury Secretary Tim Geithner:
“[Recently], the Administration announced steps we are taking to make it easier for working families to save, particularly for retirement. Working Americans should be able to retire with dignity and security, but nearly half of the nation’s workforce has little or nothing beyond Social Security benefits to get by on in old age. The measures we are announcing today will give more choices to families who want to save, and will complement the Administration’s legislative proposals to expand retirement savings. Just as the Administration is dedicated to reviving the economy and getting people back to work, so too it is dedicated to helping put retirement security within the reach of all Americans.”
The IRS also issued the following related technical guidance:
- Revenue Ruling 2009-30
- Revenue Ruling 2009-31
- Revenue Ruling 2009-32
- Notice 2009-65
- Notice 2009-66
- Notice 2009-67
- Notice 2009-68
Vision Payroll will be providing further information over the next several days. Be sure to click the links above for the original documents and further analysis.
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