Year-End Employee Benefits And Executive Compensation Checklist

Employers sponsoring retirement plans and deferred compensation arrangements should be mindful of certain actions that must take place by December 31 of this year, as well as new requirements and opportunities effective at the beginning of the 2007 plan year. Few of these action items entail major undertakings, but employers should review their plans and policies to ensure that appropriate actions are taken to comply with new requirements.

The Internal Revenue Service issued final 401(k)/401(m) regulations, which become effective for plan years beginning on or after January 1, 2006. Plan sponsors should review their plans before the end of 2006 to determine whether plan amendments are required in three specific areas: