Laserfiche WebLink
Mandatory Distributions for Small Accounts. A provision has been added to make <br /> mandatory distributions of inactive accounts with less than $1,000. (Section 4.07(d)(4)). <br /> Distribution for Qualified Heath Insurance Premiums: New section added pursuant to <br /> PPA Section 845 and IRC 402(1), which allows a distribution of$3,000 per year to "eligible <br /> retired public safety officers"to pay for"qualified health insurance premiums" if certain <br /> conditions are met. This provision reflects the regulatory requirement that the plan make <br /> distributions directly to the qualified health insurance premium coverage provider to qualify. <br /> (Section 4.08(a)). <br /> ARTICLE V <br /> Administrative Services Provider Duties <br /> Loans: Loan provisions are incorporated into the plan document, and is no longer a stand <br /> alone amendment to the plan. Including this provision does not require plans to offer loans. <br /> Plan sponsors wanting to offer loans must complete an administrative procedures document <br /> before Nationwide will begin administering loans. This document is available upon request. <br /> Plan sponsors who have already completed this step are not required to take any additional <br /> action at this time. (Section 5.03). <br /> Procedure When Location of Participant or Beneficiary Unknown: New language added <br /> to Plan Document providing distribution procedures when the location of a participant or <br /> beneficiary is unknown. (Section 5.12(a)(b)). <br /> ARTICLE VI <br /> Participant Administrative Provisions <br /> Automatic Revocation of Spousal Beneficiary Designation: New section, which <br /> automatically revokes designations in favor of a former spouse as beneficiary upon a divorce <br /> or dissolution of marriage. Many states already have laws which takes this action with <br /> former spouses. (Section 6.01). <br /> ARTICLE VII <br /> Miscellaneous <br /> Use of Plan Assets that Are Not Attributable to an Account: New section, which <br /> provides that Plan Sponsor shall direct the Administrator how to use money received by the <br /> Plan that is not related to an Account Balance. This would include any settlement money, fee <br /> reimbursements, and litigation awards received by the Plan. (Section 7.09) <br /> Retirement Specialists are Registered Representatives of Nationwide Investment Services <br /> Corporation, member FINRA <br /> NRG-0133AO FOR PLAN SPONSORS ONLY <br /> UPDATED: 02/22/2011 <br /> Page 2 <br />