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A qualified retirement plan should pass the Internal Revenue Code. If the provisions of your retirement plans or annuities do not meet the requirements of the Code, then, problems may arise.

It is the job of IRS to administer a determination letter program, which will allow plan sponsors to know beforehand the assurances that the retirement plan is stable and acceptable.

On the part of the employers, it is their role to make sure that they follow all the rules and processes that involves the retirement plans. It is the obligation of the employer to see to it that all participants and beneficiaries are all taken care of without facing problems.

Normally, problems arise due to some common reasons. Some common problems in retirement plans involve in change of staff, change in procedural requirements and change of existing service providers like attorneys and accountants.

On the part of the participants and beneficiaries, it is their obligation to see that the plans and documents that they are holding are up to date to avoid any possible conflicts. If there are any changes that you have observed, it is important that you let your insurance company know this. However, aside from retirement plans rules there are also some basic requirements that you need to memorize by heart.

For one, the Internal Revenue Code requires all participants to be at least twenty-one years of age. The day he or she had attain twenty-one years will be the date reflected on the contract or provided that the employee had completed at least one year of service to the company.

Next, your plan should describe well classification of your covered plan. In order to make it eligible, the plan should emphasis all the names of the people covered on the plan including you as the employee as well as your beneficiaries. Your rights from the contribution and all the benefits that is included in the plan.

If there are changes in some part of the plan, it is important that all participants adhere to the changes made to the plan to avoid dispute. Amendments or changes in the plan are not a reason to cut any monetary value to the plan. The value should stay the same regardless of any amendments or changes.

In addition, the limitations of the benefits and contributions that are provided in the Code section should also be implemented. For the year of 2011, the annual defined benefit plan is one hundred ninety-five thousand dollars while two hundred thousand dollars is needed for 2012. Meanwhile the limitation of annual contributions to around $49000 in 2011 and $50000 in 2012

After the accumulation period, it is now time for distribution. All the money that were invested in the plans is now ripe for pay out. Payout is given depending on your terms. If you preferred to receive it on monthly basis or semiannual basis, as an owner, that is your decision.  A plan must directly specify that the distribution process will start not later on the beginning date, or when the employee reaches the age of seventy years old or if it will be based on the calendar year in which the employee retires.

In the end, there are several qualified retirement plans that are available in the market. You may choose on which one will be best for you depending on your future goal. One of the popular retirement plans is annuity. Annuities are tax deferred and principal protected that offers security and stability for retirees.

There are several types of annuities that you may consider. In order to do that, simply enter your ZIP on the top of this page and answer some basic questions to know which type of annuity will be excellent for your future needs.