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ERISA Basics: "Nuts and Bolts" of 401(k) Plans An Overview

SPONSORS: The Sections of Business Law; Health Law; Labor and Employment Law; Real Property, Trust and Estate Law; Taxation; Tort Trial and Insurance Practice; and the American College of Employee Benefits Counsel

Program Information

Untitled Document

A 90-minute TeleConference
THURSDAY, October 18, 2012

1:00-2:30 pm ET / 12:00-1:30 pm CT / 11:00 am-12:30 pm MT / 10:00 am-11:30 am PT

Mark A. Bodron, Baker Botts, LLP, Houston, TX

Anne M. Meyer, Snell & Wilmer, Phoenix, AZ
Christina M. Crockett, Hunton & Williams, McLean, VA
Matthew J. Eickman, Lawing Financial, Overland Park, KS

The 401(k) plan has supplanted all other types of tax—qualified retirement plans as the retirement vehicle of choice for both large and small employers. Code Section 401(k) generally allows employers to establish a "cash or deferred arrangement" pursuant to which eligible employees may elect to make pretax contributions, referred to as elective deferrals and in some cases Roth 401(k) elective deferrals and/or after—tax contributions under a tax qualified defined contribution plan. In addition to the rules under Code Section 401(a) that apply to defined contribution plans in general, 401(k) plans must also comply with 401(k)—specific rules, including special nondiscrimination rules under Code Sections 401(k) and 401(m), special distribution and termination rules, and in-service withdrawal restrictions. Many employers now use one of the "safe harbor" design features available for 401(k) plans, which have their own set of rules. This teleconference is intended to provide an overview of the features and requirements of a 401(k) plan. The panel will discuss, among other topics:
  • General requirements under 401(a) for a defined contribution plan
  • What qualifies as a "cash or deferred arrangement" under Code Section 401(k)
  • ERISA fiduciary rules
  • Common 401(k) errors and available correction procedures
  • Actual deferral percentage or ADP and actual contribution percentage or ACP nondiscrimination tests and correcting ADP and ACP failures
  • "Safe harbor" 401(k) plans
  • The "contingent benefit" rule
  • Automatic enrollment

ERISA Basics: "Nuts and Bolts" of 401(k) Plans an Overview
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