Close Close
Sign In
Newsletters
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
Podcast Center Video Center Webcasts Resource Center Events
About ThinkAdvisor Contact Us Advertise With Us Asset & Logo Licensing Sitemap Terms of Service Privacy Policy Copyright © 2024 ALM Global, LLC. All Rights Reserved.
ThinkAdvisor

Regulation and Compliance > Federal Regulation > IRS

Actuaries Ask IRS About Effects Of Military Leave Law On 401(k) Plans

By Staff Writer

X
Your article was successfully shared with the contacts you provided.

NU Online News Service, Aug. 8, 2003, 5:58 p.m. EDT – The American Society of Pension Actuaries, Washington, has asked the Internal Revenue Service to discuss the effects of the Uniformed Services Employment and Reemployment Rights Act of 1994 on contributions to 401(k) plans, 457 plans and other retirement savings plans.

USERRA requires employers to protect the jobs of employees who take leaves to serve in the military.

USERRA also requires employers to give employees on military leave a chance to continue their health benefits, and it gives the employees a chance to catch up on retirement plan contributions once they return to their civilian jobs.

Brian Graff, ASPA’s executive director, and four ASPA committee and subcommittee chairmen sent a letter to Carol Gold, an IRS employee plans director, asking whether employees who are away for more than one plan year can apply catch-up contributions to the plan year of their choice.

Giving returning employees a choice could be especially helpful to the employees when employers change their matching formulas while the employees are away, the ASPA officials write in the letter.

The ASPA officials also ask about when employers must make their catch-up matching contributions and how actuaries should treat catch-up contributions when testing plans for signs of discrimination.

ASPA has posted a copy of the letter at http://www.aspa.org/archivepages/gac/2003/080603-userra.htm

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.