Impact of Pension Protection Act of 2006 on Profit Sharing and 401(k) Plans
Called the most significant retirement plan legislation since ERISA, the Pension Protection Act of 2006 (PPA) signed into law on August 17, 2006 makes important changes affecting both defined benefit and defined contribution plans.
While much of the attention in the popular press has been focused on the defined benefit funding aspects of the new law, we believe that the most far reaching impact will be on profit sharing and 401(k) plans. And for the most part highly favorable to plan sponsors and participants.
Future Briefings will provide you with details of the Act’s provisions affecting such areas as:
- Safe harbor default investments
- Investment advice for participants
- New fiduciary liability relief
- Tax planning opportunities
This issue will provide you with the highlights of the most significant changes affecting these defined contribution plans and our commentary on the changes.