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Defined Contribution Plans

By now, everyone is well aware that SECURE 2.0 was signed into law on Dec. 29, 2022. One of the provisions in SECURE 2.0 is Section 604, a fundraiser provision that allows plan participants to elect to have any fully vested employer contributions funded to a defined contribution plan made as Roth... READ MORE
The shift from defined benefit plans to defined contribution plans is not new. It may be less common in the public sector, but it is not unknown among public employers. A recent study looks at what that has meant for the Alaska education sector.  The National Institute on Retirement Security (NIRS... READ MORE
A surprising finding in a comprehensive report from earlier this year: there is no gender gap between men and women in access to employer-based retirement plans, and participation rates are also consistent between the genders. Unfortunately, the same cannot be said for savings, with women... READ MORE
Evan Greebel, pharma bro Martin Shkreli’s lawyer and co-conspirator, lost his bid to protect his 401(k) from garnishment to pay restitution to his victims. The Supreme Court declined to hear the case, effectively ending Greebel’s quest to keep his retirement plan free from a $10.4 million judgment... READ MORE
While the SECURE Act and SECURE 2.0 seek to make it easier for small business to offer a retirement plan, many employers that do not offer coverage still appear to be clinging to the same reasons for not doing so.  According to a new survey report by the Transamerica Institute and its... READ MORE
The IRS has issued an update to the 2022-2023 priority guidance plan.  The IRS had released the initial plan on Nov. 4, 2022, setting forth guidance priorities for the 12-month period from July 1, 2022, through June 30, 2023 (the plan year). It released an update to the plan in February.   The To... READ MORE
What’s happening with employer-sponsored retirement plans and where are current trends headed? Participation and deferral rates, auto enrollment and escalation, hardship withdrawals and loans — it’s tough to keep track. The Plan Sponsor Counsel of America’s (PSCA) 66th Annual Survey provides this... READ MORE
Automatic features served retirement plans — and participants — well in 2022, according to a recent report.  In its 2023 Reference Point Annual Benchmarking Report, which concerns developments related to 401(k) plan design and participant behavior in 2022, T. Rowe Price reports that plan features... READ MORE
Will Hansen, Chief Government Affairs Officer for the American Retirement Association, details to John Sullivan what’s going on in Washington. Could the 401(k) system move from the private sector to Treasury? How do provisions in SECURE 2.0 help Americans? Hansen also details what ARA is doing to... READ MORE
Workplace benefit professionals who were surveyed on a wide range of employee benefits issues looking toward 2026 predict a massive increase in employer-provided defined contribution (DC) plan coverage, particularly in the smaller plans market. Indeed, most respondents foresee 88% of employers... READ MORE
If you’re older than a certain age, you’re familiar with the tagline, “Roaches check in, but they don’t check out.” It’s kind of like that in a 401(k) plan. You can easily check your money in (contribute to the plan), but it can be hard to check it out (withdraw it). Often, you can borrow money... READ MORE
The IRS has updated the information it provides for determining the tax treatment of pension and annuity income under the General Rule. The information is contained in revised Publication 939, General Rule for Pensions and Annuities, which the IRS has updated for 2022 reporting. The publication... READ MORE
Apart from the recent market volatility, a new study shows significant growth in account balances for 401(k) plan participants who consistently participate — especially for younger workers.   According to the study from the Employee Benefit Research Institute (EBRI) and the Investment Company... READ MORE
The newest digital edition of ASPPA’s members-only magazine has been posted online! SECURE 2.0 was enacted on the cusp of 2023. It’s complex and confusing — but also filled with opportunity. In this issue’s cover story, John Sullivan and Nevin E. Adams, JD take a look at what retirement... READ MORE
A bill before the Illinois Senate would give participants in the state retirement system the opportunity to choose an additional option for their retirement plan coverage.  Sen. Dan McConchie (R-Lake Zurich) introduced SB 1516, which would require plans by July 1, 2025 to prepare and implement a... READ MORE
While self-directed 401(k) investor balances increased in the fourth quarter, year-over-year returns remained negative  — consistent with the market overall, according to Charles Schwab’s SDBA Indicators Report.  The report, which tracks retirement plan participant investment activity within self... READ MORE
Plan fiduciaries that had come close to settling a suit that accused them of mismanaging plan assets — twice — have managed to prevail because the plaintiffs waited too long to sue. In this case, participant-plaintiffs Daniel Draney and Lorenzo Ibarra brought suit against the plan fiduciaries of... READ MORE
There’s good news and bad news in Fidelity Investments’ year-end 2022 analysis of savings behaviors and account balances.  First the bad news. Fidelity’s analysis shows that average account balances for 401(k)s, 403(b)s and IRAs all dropped by more than 20% from year-end 2021 to year-end 2022. The... READ MORE
Despite (or maybe because of) SECURE 2.0’s passage, 401(k)s face increasing attacks, with the latest salvo coming from an opinion piece published in Politico. Social Security is just one part of the retirement system, notes the piece, provocatively titled “Before Slashing Social Security, Cut 401(... READ MORE
Are retirement plans SECURE? American Retirement Association CEO Brian Graff, NTSA Executive Director Nathan Glassey, and ARA Director of Federal and State Legislative Affairs Andrew Remo at the Feb. 26 opening session of the 2023 NTSA Summit in Tampa, FL discussed Washington’s take on that. And,... READ MORE