Retirement Plans Must Be Amended By 2001 Year-end
By the end of their 2001 plan year, businesses must amend their qualified retirement plans to comply with various tax law changes that have taken place since 1994. This includes 401(k)s, pension plans, and profit-sharing plans.
Many small businesses have qualified retirement plans that have been set up by banks, brokers, mutual fund companies, or other financial institutions. If you haven't received documents to amend your plan, contact the company that administers your plan.
If your plan's language doesn't comply with the law by the deadline, the IRS could disqualify your plan. This could result in the taxation of plan earnings, a retroactive loss of deductions for your plan contributions, and the loss of tax-favored benefits for your employees.
If your business sponsors a retirement plan for your employees, take action now. For more details, give us a call.
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© Copyright 2001 Raymond S. Kulzick. All rights reserved. 010805.
This publication provides business, financial planning, and/or tax information to our clients. All material is for general information only and should not be acted upon without seeking appropriate professional assistance.