McKay Hochman Company, Inc.

PROVISIONS EFFECTIVE RETROACTIVELY ON OR AFTER JANUARY 1, 2007

For benefit accrual purposes, an employer may treat an individual who dies or becomes disabled (as defined under the terms of the plan) while performing qualified military service as if the individual has resumed employment on the day preceding death or disability and terminated employment on the actual date of death or disability (in accordance with USERRA)

Section 104

Created Code §401(a)(37) "DEATH BENEFITS UNDER USERRA-QUALIFIED ACTIVE MILITARY SERVICE.
A trust shall not constitute a qualified trust unless the plan provides that, in the case of a participant who dies while performing qualified military service (as defined in section 414(u)), the survivors of the participant are entitled to any additional benefits (other than benefit accruals relating to the period of qualified military service) provided under the plan had the participant resumed and then terminated employment on account of death.’’

Nondiscrimination requirement — All individuals who die or become disabled as a result of performing qualified military service (prior to reemployment) are to be credited with service and benefits on reasonably equivalent terms

The amount of employee contributions and elective deferrals of the individual shall be determined on the basis of the individual’s average actual employee contributions or elective deferrals for the lesser of:

(i) the 12-month period of service with the employer immediately prior to qualified military service, or

(ii) if service with the employer is less than such 12-month period, the actual length of continuous service with the employer

PROVISIONS EFFECTIVE BEGINNING ON OR AFTER JANUARY 1, 2008

The temporary PPA provision allowing an individual in the reserves who is called to active duty for more than 179 days to be exempt from the 10% early withdrawal penalty has been made permanent
PPA provision had run from Sept. 11, 2001 through December 31, 2007

Section 107

PROVISIONS EFFECTIVE BEGINNING ON OR AFTER JUNE 17, 2008

Employers with less than 50 employees are eligible for a tax credit of 20% of the eligible differential wage payments for each qualified employee up to $4,000 per employee for amounts paid from June 17, 2008 to December 31, 2009

Section 105

Distributions will be taxed at a set withholding rate for those who become expatriates after June 17, 2008 that take their retirement distributions overseas, even if a tax treaty already exists

Section 301

PROVISIONS EFFECTIVE BEGINNING ON OR AFTER DECEMBER 31, 2008

Code Section 3401(h) created differential wage payments to active duty members of the uniformed services

Differential wage payments are now considered wages for withholding and qualified plan purposes

Section 105

PROVISIONS EFFECTIVE BEGINNING ON OR AFTER JANUARY 1, 2010

HEART Act Plan Amendment

Although a plan does not need to amend for the HEART Act until 2010, the McKay Hochman Co., Inc. 2009 Pension Protection Act (PPA) amendment also includes the HEART Act amendment

Section 104