Heller Pension Associates, Inc
1. Dollar Limits for 2008 and 2009- The annual limitations for 401(k) deferrals, profit sharing and money
purchase plan contributions, and compensation which can be used for retirement plan purposes are as follows:

Year               401(k)                                 401(k)(age 50 or older)

2008               $15,500                                $20,500
2009               $16,500                                $22,000

Year     SIMPLE 401(k)                    SIMPLE 401(k)(age 50 or older)

2008               $10,500                        $13,000
2009               $11,500                        $14,000

Year        Profit Sharing/Money Purchase        Compensation

2008        *$46,000                                                $230,000
2009        *$49,000                                                $245,000

* It should be noted that (i) the “Profit Sharing” figures above include any 401(k) deferrals made by a participant, (ii)
for those age 50 or over who participate in a 401(k) profit sharing plan, the annual limit for 2008 is $51,000 and for
2009 is $54,500, and (iii) the 401(k) deferral limitations are based on a calendar year, regardless of the applicable
fiscal or plan year.

2. Plan Distributions- It is important that employers do not permit distributions to be made to participants without
the input of Heller Pension Associates, Inc.  Employers should contact us if any participant requests a distribution of
his or her plan benefits.   There are many rules to be followed with regard to plan distributions.  If these rules are
not complied with, the plan sponsor can be subject to substantial penalties.

3. 401(k) Deferral and Loan Repayment Deadlines- Sponsors of 401(k) plans must make sure that all employee
401(k) deferrals (including the deferrals made by shareholder employees) are deposited no later than the seventh
business day following the day such deferrals are withheld from pay.  This is a recent proposed change which is
likely to become final in the near future.  In the interim, the Internal Revenue Service (IRS) has been very strict in its
requirement that 401 (k) plans utilize this expedited seven-day deadline.  Owners of sole proprietorships,
partnerships, LLCs, LLPs, and PLLCs must also make their 401(k) deferral elections during the applicable plan
year, and must deposit such deferrals into their plan accounts by the same seven-day deadline.  Loan repayments
in all plans must also be deposited by the aforementioned deadlines.   It should be noted that the seven-day
requirement applies to plans with 100 or fewer participants as of the beginning of the applicable plan year.  The
deadline is “as soon as possible” for plans with more than 100 participants, which could be interpreted by the IRS to
mean sooner than within the aforementioned seven-day requirement.

4. Aggregation of Section 401(k) and Section 403(b) Plans- When calculating the maximum amount that an
individual can have withheld from pay as either a Section 401(k) deferral or a Section 403(b) contribution, the
individual must take into account all Section 401(k) and Section 403(b) plans in which the individual participates in a
given calendar year, regardless of whether such plans are with the same or different employers.  For example, if an
employee is a participant in a Section 401(k) plan and a Section 403(b) plan, he or she can only defer a total
between the two plans of up to $15,500 for the calendar year 2008 or $16,500 for 2009 ($20,500 and $22,000,
respectively, if the employee is age 50 or older).

5. Prohibited Transactions- The law prohibits retirement plan fiduciaries (including the plan sponsor, its owners
and plan trustees) and certain individuals who are related to plan fiduciaries or have other relationships with the
plan, from participating in certain transactions with the plan or its assets.  For example, these rules prohibit a plan
fiduciary or certain family members from serving as an investment advisor or broker with respect to the plan’s
assets, if they receive any direct or indirect compensation for providing such services.  Substantial penalties and
possible plan disqualification could occur if these rules are not followed.  If there is a question with respect to a
contemplated transaction, please contact Heller Pension Associates, Inc. prior to the commencement of such

6. IRS and DOL Audits- The IRS and Department of Labor (DOL) occasionally perform audits of qualified
retirement plans.  Generally, they contact the plan sponsor directly without providing us notification of the audit.  If
you are contacted by the IRS or DOL regarding an audit, please contact us before you respond to any notification
by the IRS or DOL.

7. 401(k) Deferral Election Forms- Plan Sponsors of 401(k) plans must provide eligible employees with “Deferral
Election” or “Salary Reduction Agreement” Forms prior to the beginning of each plan year.  It is important that the
completed forms are collected by the Plan Sponsor.  The Plan Sponsor can then prove (e.g., to the IRS and DOL, if
necessary) that each eligible employee has had the opportunity to commence or alter his or her election.  

8. Safe Harbor 401(k) Plan Deadlines¬- For sponsors of profit sharing plans, the deadline to convert your plan to
a safe harbor 401(k) plan is three months prior to the end of the applicable plan year.  For example, if the plan year
ends December 31, in order to convert a profit sharing plan into a Safe Harbor 401(k) Plan for the 2009 plan year
the deadline is generally October 1, 2009.  For sponsors of “regular” 401(k) plans, the deadline to convert your
plan to a safe harbor 401(k) plan is 30 days prior to the commencement of the applicable plan year.  For example,
if the plan year ends December 31, the deadline to convert your plan to a safe harbor 401(k) plan for the 2009 plan
year was December 1, 2008.  In addition, if you want to remove the nonelective safe harbor contribution from an
existing safe harbor 401(k) plan, the deadline to do so is the December 1 prior to the commencement of the
applicable plan year.

9. Higher Contribution Limitations- For certain plan sponsors, there may be ways to increase the level of
contributions for the owners of the plan sponsors.  One such way is to add a 401(k) feature to your existing profit
sharing plan, which may also reduce the required contributions for non-owner employees.  Another way is to adopt
a defined benefit pension plan in addition to your existing plan, which would allow owners to contribute very high
levels of contributions.  Depending on the age of the owner, the owner’s deductible contribution can be substantial
(e.g., over $100,000).  However, the cost for the owner’s employees could be high, and depends on the number of
such employees and their respective ages.  Please contact us if you would like to discuss either of the options
described herein.  

10. Plan Investments- Plan sponsors of defined contribution plans (e.g., profit sharing, 401(k) and money
purchase plans) have a choice of allowing the plan trustees to invest all of the plan’s assets or to allow participants
to direct their own investments.  There are benefits to either such choice.  For example, plans with trustee-directed
investments generally require less administrative duties from the applicable plan sponsor.  However, these plans
are only valued once per year, and all subsequent plan distributions for the entire next plan year are based on that
previous annual valuation.  Therefore, the amounts of distributions in such plans can vary significantly from the
investment account values on the dates of distribution.  Accordingly, plan sponsors may want to consider amending
their plans to provide for multiple valuations dates, whereby the plan is revalued as of a specific date for purposes
of plan distributions (e.g., the end of the month prior to the distribution).  There are additional fees for each such
valuation.  On the other hand, plans that offer participant-directed investments provide reduced potential fiduciary
liability to the plan trustees, especially if certain rules are followed.

11. Plan Restatements and Amendments- Recent changes to applicable law now require that all retirement
plans be restated with the IRS at least every six years.  In between each such six-year cycle, interim “snap-on”
amendments are also required.  Please note that we have recently been mailing the required plan restatements
and snap-on amendments to all plan sponsors.  Please make sure that all required signature pages are executed
and returned to our office as soon as possible, and that the Summary Plan Description is distributed to all eligible
employees.  Please also note that the fees for such restatements and amendments are included in the invoices
sent to plan sponsors each year and are not billed separately.  

12. Suspension of Required Minimum Distributions for 2009- Pursuant to the Worker, Retiree and Employer
Recovery Act of 2008, participants of defined contribution plans (including money purchase, profit sharing and 401
(k) plans) over age 70 ½ who would normally be required to take annual minimum distributions will not be required
to take such distributions for 2009.  Applicable participants will still have the option to take such distributions.  
However, failure to do so will not result in the traditional 50% penalty.  Please note that participants in defined
benefit pension plans are not provided this option for 2009 and must take their 2009 required minimum
distributions.  Please also note that the suspension does not apply to the first required minimum distribution for
participants who elected to receive their 2008 required minimum distributions between January 1, 2009 and April 1,
2009.  Those amounts must still be timely distributed.