In Notice IR-2009-91, dated October 13, 2009, the IRS announced the development and launch of the “IRS Retirement Plan Navigator,” a web-based tool designed to assist small businesses in evaluating pension plans, then selecting the plan that best meets their requirements. In addition, information on the site will assist businesses in keeping their retirement programs in compliance with IRS regulations.

The goal in launching the Retirement Plan Navigator is to give small businesses a straightforward guide for selecting, maintaining and amending a retirement plan, simplifying administration of the entire plan life-cycle.

The Navigator will provide comparisons of different plan types to allow firms to select the optimum plan that meets their needs given the resources available, however the Navigator does not recommend specific plans. The comparison feature is critical to the selection process, as some plans are easier to set-up than others, as well as being more or less expensive to establish.

The Navigator also offers a checklist and resource guide to assist firms to stay compliant because pension laws often change. To best serve its constituency, the Navigator will be updated with changes to pension laws and regulations. The guide recommends annual reviews to ensure compliance and identify issues and errors requiring remedial actions.

Additionally, the IRS knows that errors can be made inadvertently, so the Navigator provides corrective options for firms to return their plans to compliance. In fact, they allow a number of issues and errors to be corrected without communicating with the IRS.

The Navigator is designed for small businesses, but can also be useful for medium-sized businesses to review their options and for employees to learn more about their firm’s retirement plan.

Additional information is available at the IRS website through their “Employee Plans Office” including “Retirement Plans Frequently Asked Questions (FAQs).” Businesses should also consult with their CPAs, professional tax preparers or other tax practitioners regarding the best pension plan option for their situation.

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