A Moment of Reflection

New Year's Eve...a time to reflect upon the past, and look forward to the new...

As I look back at the past 18 months, I am very proud of the direction Wells Thomas, LLC has taken, and I feel the journey ahead will bring out the best in us yet. I am ever thankful to my staff for all of their hard work and dedication to their clients. Not only is the experience of my staff impressive, but the comments I get from clients about the relationships they are building with our staff is a cornerstone of our service model, on which we will continue to build.

The past year has also seen some expansion on the services and activities we have become involved in. In March we began a series of quarterly meetings with local investment advisors, with the intent of providing simple, yet vital, information they can use in supporting their clients' retirement plan needs. I am happy to say that we have already lined up multiple sponsors for 2009, and will continue these quarterly meetings in the coming year.

In a similar vein, I began doing presentations for local broker/dealers and investment advisory firms in Connecticut. These question and answer meetings have topics ranging from "how to sell a retirement plan" to issues of plan design and administration, all with the purpose of providing knowledge and support to investment professionals interested in working with retirement plans. As a non-producing Third Party Administrator, the bulk of our referrals come from investment advisors, so we wish to actively support them in all of their needs for retirement plans.

Other highlights of the year include:

* Rolling out our new website (www.wellsthomas.com), which allows our clients to have greater and easier access to plan data
* Working to develop a relationship with New England Payroll Services, LLC, a payroll company in Hamden, which will streamline data transfers for mutual clients
* Testifying before the Connecticut Commerce Committee at the State Capitol regarding retirement plan matters
* Bringing on new members of our staff to strengthen our position as a local TPA
* Being named one of the select TPAs in Connecticut to offer the American Funds Plan Premier program
* Being selected as one of the few TPAs in the country to become a Strategic Administrator with Nationwide Trust Company

In closing, though there are a multitude of people I would like to thank for their ongoing support and work with Wells Thomas, LLC, I would like to take a moment to thank a special few:

My staff: Nancy, Frank, Margaret, Laurie, Lori, Terri, Tracy and Kris
My family for their support in this wonderful adventure
Those who have continued to support Wells Thomas, LLC with referrals, including: Bonnie, Mike, Glenn, Heidi, Lori, Kevin, Michelle and Roland, to name just a few
And finally, to all of my friends, old and new...

Thank you,
Sean

Congress Passes Economic Relief and Technical Corrections Bill

On December 11, 2008, the House and Senate passed The Worker, Retiree and Employer Recovery Act of 2008 (HR 7327), which will become law when signed by the President. [For a complete copy of the bill, click on the title of this post to be taken to the site.]

This bill includes short term provisions to help individuals and plan sponsors deal with the market downturn, as well as the PPA technical corrections package.

A few of the highlights of the bill are:

*Effective for plans beginning after December 31, 2009, rollovers by non-spouse beneficiaries are generally subject to the same rules as eligible rollovers. This means plans are required to provide a direct rollover option for non-spousal beneficiaries and must provide an IRC Sec 402(f) notice to the non-spousal beneficiaries.

*The requirement that gap period income be distributed on excess deferrals is eliminated. Thus, gap period income is no longer required on excess contributions, excess aggregate contributions, and excess deferrals distributed to satisfy IRS Sec 401(k)/(m) or 402(g).

* Effective for plan years beginning after 2008, defined benefit plans sponsored by small employers (100 or fewer employees) can provide a fixed 5.5% interest rate for determining maximum lump sum benefits under IRC Sec 415.

* The minimum required distributions otherwise due for 2009 under IRC Sec 401(a)(9) would be waived for qualified retirement plans, IRC Sec 403(a) and IRC Sec 403(b) plans, governmental IRC Sec 457(b) plans and IRA's.

As these are just a few highlights of the entire bill, we encourage you to call our office if you have any questions.

403(b) Plans Get Extension to Complete Written Plan Documents

On December 11, 2008 the IRS issued a notice announcing relief for retirement plans covering employees at public schools, colleges and universities, and other tax exempt organizations (usually referred to as 403(b) plans), that do not have a written plan document in place by January 1, 2009.

Due to the difficulty in satisfying the written document requirement by January 1, 2009 that many plan sponsors have expressed, the IRS will treat these plans as meeting the requirements of 403(b) and the regulations during the 2009 calendar year if:

* By December 31, 2009, the sponsor of the plan has adopted a written 403(b) plan that is intended to satisfy the requirements of 403(b) and the regulations.

* During 2009, the plan sponsor operates the plan in accordance with a reasonable interpretation of 403(b) and the related regulations.

* By the end of 2009, the plan sponsor makes its best effort to retroactively correct any operational failure during the 2009 calendar year to conform to the written plan.

Further guidance is expected from the IRS regarding 403(b) plans, including a revenue procedure establishing programs for 403(b) plans to obtain IRS approval of the plan document and allowing these plans to make remedial amendments to retroactively fix plan provisions under rules similar to those that apply for 401(a) qualified plans.