January 2013 Archive

‘Fiscal cliff’ legislation and retirement benefits: 2013 explained

January 24, 2013

Earlier this month, the Senate and House passed, and the President signed, the American Taxpayer Relief Act of 2012. The new law avoids the ‘fiscal cliff’, which would have triggered significant tax increases this year for most taxpayers. In this article we discuss the effect of the new legislation on retirement savings tax incentives. Read More

Fiscal cliff & retirement plans: Capital gain & dividend taxes

January 22, 2013

We have posted a series of articles on the impact on 401(k) plan participants of possible changes in the Tax Code, which generally treated ‘outside the plan’ savings as taxable at ordinary income tax rates. In this article we consider, first, the relevance of different tax rates for capital gains and dividends under current law, and, second, the impact on participants of changes in those rates (e.g., in connection with changes that may emerge from ongoing budget negotiations.) Read More

Tax policy and retirement plans -- a summary

January 22, 2013

We have posted a series of articles separately analyzing the impact on 401(k) plan participants of possible changes in the Tax Code. In this article we synthesize those analyses. As a result, the numbers are going to change. In the prior articles we isolated the effect of changes in particular features of the Tax Code. Now we are going to look at, e.g., the effect of an increase in capital gains tax rates together with a change in ordinary income tax rates and the new Medicare tax on net investment income. Read More

2013 Compliance Calendar - Single-Employer Plans

January 21, 2013

October Three is pleased to provide you with this 2013 Pension Compliance Calendar! The calendar captures important filing and plan notification dates and can be referenced by plan sponsors throughout the calendar plan year reporting cycle to help keep track of important deadlines and qualified plan reporting requirements. Please feel free to contact October Three if you require assistance in reviewing or preparing any of the reporting referenced in this document. Download

December 2012 Pension Finance Update

January 01, 2013

Financial markets see-sawed during December, rising on hopes of a resolution of the looming combination of tax increases and spending cuts known as the ‘fiscal cliff’, then falling on fears that no agreement would be found. In the end, hope prevailed despite no agreement, and a New Year’s Eve rally pushed pension funds into positive territory for the year. A combination of higher stocks and higher interest rates improved pension funded status 2%-3% during December. Download

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