Compliance September 19, 2007

IRS Announces Temporary Halt to Determination Letter Process

The Internal Revenue Service (IRS) announced on Wednesday it will temporarily stop taking applications from pre-approved defined contribution plans for determination letters on December 18, 2007.
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IRS officials said in Announcement 2007-90 they were taking the step to better prepare to receive such applications from all master and prototype and volume submitter plans during a two-year period, which the tax agency said it would likely announce early next year.

The pre-approved plans are required to be restated to comply with the Economic Growth and Tax Relief Reconciliation Act (EGTRRA) and submitted to the IRS for determination letters on Form 5307. As provided in Rev. Proc. 2007-44, when the review of the pre-approved defined contribution plans is near completion, the IRS will publish an announcement providing the date by which adopting employers must adopt the newly approved plans.

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Officials said they would keep processing determination letter applications for defined contribution plans filed on Form 5307 before December 18, 2007, provided the plan has a favorable GUST opinion or advisory letter. GUST refers to a number of Acts that include qualified retirement plan rules.

Any determination letter application for a defined contribution plan filed on Form 5307 on or after December 18, 2007 and before the opening of the approximately two-year period for adopting EGTRRA-restated pre-approved defined contribution plans will be returned to the applicant, the IRS said.

Deals & People September 19, 2007

NAPFA Offers Adviser Access to Annuity Platform

The National Association of Personal Financial Advisors (NAPFA) will offer its fee-only members access to institutionally-priced immediate annuities via Hueler Companies’ platform.
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NAPFA-registered advisers will have access to the Income Solutions platform, which facilitates annuity purchases for IRA rollover assets, by the end of September.

NAPFA advisers with access to the platform can request lifetime income annuity quotes on behalf of their clients at lower prices than what is typically available through retail distributors.

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All annuity products offered on the Income Solutions platform can be customized to meet an individual’s personal objectives, are competitively quoted, and provide full fee disclosure, according to a press release.

Some of the companies on the platform include, AIG Life Insurance Company, Hartford Life Insurance Company, Integrity Life Insurance Company, Mutual of Omaha, Principal Life Insurance Company, and Prudential Insurance Co. of America.

“Hueler and NAPFA share a common vision that seeks to empower individual investors with the tools, knowledge, and resources necessary to create retirement income security,’ said Kelli Hueler, CEO of Hueler Companies, in the release.

More information on the annuity platform is at www.IncomeSolutions.com.

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