<nobr>Feb 11, 2008</nobr>

ERIC Submits Comments on Proposed Automatic Contribution Arrangement Regulations

ERIC together with the Profit Sharing/401k Council of America (PSCA) today submitted to the Treasury Department and Internal Revenue Service comments on proposed regulations relating to automatic contribution arrangements (ACA). The proposed regulations, which were published in the Federal Register on November 8, 2007, would implement new rules that facilitate the adoption of ACAs in 401(k) plans and other similar plans under sections 403(b) and 457 of the Internal Revenue Code.

ERIC and PSCA's comments focus on the definition of an "eligible employee," and the time allowed, eligibility to make, effective date of, and reporting and withholding requirements of section 414(w) withdrawals. The comments also focus on the treatment of a rehired former employee, the notice requirements for safe harbor plans under section 401(k)(12), and on the notice of immediate eligibility for a qualified ACA.

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Text Files:

Comments on Proposed ACA Regulations

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