How DOMA affects your retirement plan…

Something you need to think about on your 401k and other benefit plans:

Due to recent legislation (DOMA – Defense of Marriage Act), qualified retirement plans must treat a same-sex spouse as a spouse for purposes of satisfying the federal tax laws relating to qualified retirement plans.

This legislation will impact owners with a same sex spouse on payroll as their spouse will now be classified as highly compensated.  This reclassification will affect the results of year end testing.  Beneficiary designations previously completed should also be reviewed to ensure that they are still accurate (i.e. spouses are always primary beneficiaries unless spouse has waived their right to the benefit).