PA Pension Planners

ASPPA

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The Pension Protection Act of 2006

PPA2006 was signed into law by President George W. Bush on August 17, 2006. A brief summary prepared by Sungard, Inc. The bill makes sweeping changes to the defined benefit funding requirements. In addition, there are significant changes affecting all profit sharing and 401(k) plans. Highlights of some of the more important provisions included in…

Saver’s Credit Notice

Notice to Employees Regarding Saver’s Credit: This notice explains how you may be able to pay less tax by contributing to [insert name of employer’s plan] (the “Plan”) or to an individual retirement arrangement (“IRA”). Beginning in 2002, if you make contributions to the Plan or to an IRA, you may be eligible for a…

QDIA

QUALIFIED DEFAULT INVESTMENT ALTERNATIVE (QDIA) The Pension Protection Act (PPA) added a new fiduciary protection to ERISA for default investments. Section 404(c)(5) provides that, in situations where participants have an opportunity to direct their investments but fail to do so, the fiduciaries will be entitled to a 404(c) defense if those participants are invested in…