Compliance December 13, 2010

IRS Publishes Changes in Plan Qualification Requirements

The Internal Revenue Service has issued Notice 2010-90, which provides a cumulative list of changes in plan qualification requirements.
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The notice contains the 2010 Cumulative List of Changes in Plan Qualification Requirements (2010 Cumulative List) described in section 4 of Rev. Proc. 2007-44, 2007-2 C.B. 54. The 2010 Cumulative List is to be used by plan sponsors and practitioners submitting determination, opinion, or advisory letter applications for plans during the period beginning February 1, 2011 and ending January 31, 2012.   

The IRS said these plans will primarily be single employer, individually-designed defined contribution plans, including employee stock ownership plans (ESOPs), and single employer, individually-designed defined benefit plans that are in Cycle A and defined contribution pre-approved plans (that is, defined contribution plans that are master and prototype (M&P) or volume submitter (VS) plans) for the second submission under the remedial amendment cycle under Rev. Proc. 2007-44.   

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Generally, an individually designed plan is in Cycle A if the last digit of the employer identification number of the plan sponsor is 1 or 6.  

Notice 2010-90 is here.
Products December 13, 2010

New Investment Management Platform for 401(k)s

Mid Atlantic Trust Company (MATC) launched its new platform, ModelxChange, which allows 401(k) professionals to incorporate mutual fund and/or exchange-traded fund investment models into a plan through a Web-based interface.
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ModelxChange provides a single system for the creation, execution and ongoing management of investment models for the 401(k) marketplace, according to a press release. The platform provides plan investment advisers with access to a host of third-party money managers with proven track records that are able to provide models comprised of ETFs and/or mutual funds.  

Managers can set-up and manage their investment models and then deliver those models and the investment changes to each individual 401(k). According to the announcement, money managers can also set security and cash targets, as well as specific investment exclusions requested by the plan fiduciary.

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