Carpenter Morse GroupThe CMG Quarterly Connection - Since 1975
IntroAnnouncementsLegislative UpdatesRecipe of Distinction

Deferral & Match Non-Discrimination Testing Deadline

Remember: All 401(k) plans that do not have a safe harbor feature are required to test the deferral and match contributions made to the plan by 2 ½ months following the plan year end. December 31st calendar year end plans must perform these tests by March 15th, 2009. Please be sure to provide our office with the necessary census data prior to March 1st to allow enough time for testing and processing of deferral and match refunds if necessary. Failure to process refunds timely, if necessary, will cause IRS penalties & double taxation of refunds.

Contribution Deposit Deadline

For those calendar year Employers wishing to file your Corporate tax return by March 15, 2009, please be sure to deposit your full Employer contribution prior to filing. Employer contributions to a retirement plan are not considered deductible if deposited after filing your corporate return. If you extend your due date for the return, your contribution deposit deadline is also extended. Of course, our office will assist with calculating the appropriate Employer contribution as soon as we receive your 2008 year end data.

Winter 2009


The New Year is finally here!! A fresh start is upon us.

We hope your holidays were enjoyable and filled with much happiness. As well, we hope your New Year has started on a positive note and that 2009 is treating you well.

At Carpenter Morse Group, we have begun the year with a resolution to make this a productive and positive year for all of our clients. We do expect this year to be a continuing wild “economic” roller coaster ride. So, just as we have done in the past, we will continue to do our very best to serve your needs as best we can. As we complete your 2008 year end valuations, we will also review the plan design and meet with you to ensure the plan continues to meet your needs in this economic environment.

As always, we hope that this month’s e-Newsletter proves helpful in reminding you of pertinent news information and deadlines associated with your employee retirement plan.

If you have any questions about any of the information contained herein, please do not hesitate to contact us.

Looking forward to seeing you all again this year as we complete the year end reports.

All the best,
The Carpenter Morse Group Team



2008 Was a Great Year for CMG!

We are very thankful for the wonderful year we had in 2008. CMG added 35 new clients during the year, all of which were referred by our clients and advisors. We thank you for your continued belief in our team!

Reminder – All Plan Related Expenses May Be Paid Using Plan Assets

We want to remind you that you are permitted to assess fees related to the annual administration of the plan directly to the plan assets. This method may assess the fees either prorata (each account balance reduced by the same percentage), or per capita (each account balance reduced by a set dollar amount). Please feel free to call our office if you would like to utilize this method of payment.


Legislative Updates

Waiver of 2009 Required Minimum Distributions

Participants who have attained age 70 ½ and who are either Owners of the Company or are terminated participants are required to take annual minimum required distributions from their plan account balance. Due to recent economic conditions, the IRS is waving this required taxable distribution for the 2009 year only. It is expected that this distribution requirement will return effective with the 2010 plan year. For a further explanation of who must receive required minimum distributions, the timing of these distributions and the tax effects of such a distribution, please feel free to contact our office.

DOL Clarifies ERISA Fidelity Bonding Requirements

ERISA requires that all qualified plans maintain a fidelity bond to protect the plan’s assets in the event of fraud or dishonesty on the part of plan officials whom have access to the plan’s funds. Generally, the amount of the bond must be at least 10% of the plan assets, with a minimum of $1,000 and a maximum of $500,000. The Department of Labor has issued further guidance regarding this requirement. Please visit the “Latest Legislative Changes” tab of our website to read the full article.

A Recipe From Our
Family to Yours

For this upcoming Valentine’s Day be sure to treat your special someone to a special treat. I prepare these holiday cookies each year and both my husband and daughter love them!

Chef Serena

Chocolate Covered Cherry Cookies II


1/2 cup butter
1 egg
1 1/2 cups all-purpose flour
1/4 teaspoon salt
1/4 teaspoon baking soda
1/4 teaspoon baking powder
1 cup white sugar
1/2 cup unsweetened cocoa powder
1 1/2 teaspoons vanilla extract
1/2 cup sweetened condensed milk
1 cup semisweet chocolate chips
1 (10 ounce) jar maraschino cherries

Chocolate Covered Cherry Cookies II


  1. Preheat oven to 350 degrees F (180 degrees C).
  2. Beat butter and sugar. Add egg and vanilla and beat well. Add dry ingredients and stir until smooth.
  3. Roll into 1-inch balls about the size of a walnut (larger if desired). Place on ungreased cookie sheet.
  4. Drain cherries and reserve juice. Press center of each ball with thumb. Place a cherry in indentation.
  5. In a saucepan, heat condensed milk and chocolate chips until chips are melted. Stir in 4 teaspoons of cherry juice. Spoon about 1 teaspoon of mixture over each cherry and spread to cover cherry. (More cherry juice may be added to keep frosting of spreading consistency.)

Bake for 10 minutes.

Carpenter Morse Group
834 N. Highland Orlando, FL 32803
Tel: (407) 843-0316    Fax: (407) 843-1668
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