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Defined Contribution Plans
I’d like to start what is likely to be a series of columns on the possibility that we are or may be moving to a provider-based retirement benefit system.
What problems might be solved by such a change? And what challenges might be created? I want to begin with a consideration of our current...
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The U.S. Department of Labor has published compliance assistance for 401(k) plan fiduciaries considering plan investments in cryptocurrencies, in an effort aimed at protecting the retirement savings of U.S. workers.
The department’s Employee Benefits Security Administration (EBSA), published ...
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The IRS has issued a reminder that it may still be possible to claim a deduction for 2021 for contributions to IRAs—but the clock is ticking. Contributions that could be claimed must have been made by April 18, 2022.
Contributions for 2021 can be made to a traditional or Roth IRA until the filing...
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Following a year that saw the lowest trading in nearly a quarter century, the war in Ukraine and related market volatility has resulted in another busy trading month for 401(k) investors.
As international political events drove Wall Street lower, 401(k) investors reacted with above-normal trading...
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The impact of 401(k) loan defaults on retirement savings can be significant, but new research by EBRI shows that automatically enrolling participants in a 401(k)-loan insurance program can help reduce defaults and improve outcomes.
While Department of Labor data, overall, indicates that loan...
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Participants value the investment opportunity that 401(k) plans represent and are largely opposed to changing the tax preferences or investment control in those accounts, a new survey finds.
Nearly 9 in 10 individuals (89%) who expressed an opinion had favorable impressions of 401(k) plans, with...
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A March 1 House subcommittee hearing to address improving retirement security and access to mental health found itself largely debating the Biden administration’s proposed guidance on ESG factors, as well an array of retirement policy proposals.
The hearing by the House Education and Labor’s...
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Keep in mind that the Department of Labor (DOL) adjusted the civil monetary penalties for inflation for 2022.
The DOL adjusts the penalties for various violations of Title 1 of ERISA in accordance with the 2015 Inflation Adjustment Act, which provides a formula on how to determine the proper...
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The Cycle 3 defined contribution pre-approved plan restatement deadline is coming: July 31, 2022. But there is more to restatements than that.
That looming deadline means that “now is the time” to focus on updating 401(k) and other plans—including profit-sharing, money purchase and employee stock...
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After what seems a brief respite, another multibillion-dollar 401(k) has been targeted with an excessive fee suit.
The plaintiffs here—Keith K. Kruchten, Angel D. Muratalla and William Begani—are bringing suit on behalf of the $2.1. billion Ricoh USA, Inc. Retirement Savings Plan. They’re...
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Despite the Great Resignation, saving for retirement is still very much a priority, as Fidelity’s IRA and DC plan savers set new records in 2021.
Assisted by strong market gains and employers helping to keep workers on track, Fidelity Investments’ 2021 year-end analysis of more than 35 million IRA...
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The Great Resignation and difficulty filling open positions are among the factors that make these bracing times for an employer. The 401(k) is one of the tools by which an employer can meet these challenges, argues a recent blog entry.
The 401(k) and its features are a key part of a total rewards...
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The IRS on Feb. 23 issued a proposed rule addressing the required minimum distribution (RMD) requirements for plans qualified under Code Section 401(a) that will update applicable regulations to reflect provisions of the SECURE Act.
The proposed rule will affect RMDs from qualified plans, 403(...
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The devil may be in the details, but they occur against a bigger backdrop. At a Feb. 7 session of the 2022 NTSA Summit in Phoenix, American Retirement Association Chief Content Officer Nevin Adams offered attendees a look at some big picture “seismic shifts” affecting the retirement industry. ...
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Will your 401(k) be bitten by the Bengals—or rally with the Rams?
That’s what adherents of the so-called Super Bowl Indicator[1] would likely conclude, after all. It’s a “theory” that when a team from the old National Football League wins the Super Bowl, the S&P 500 will rise, and when a team...
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The ERISA Advisory Council has released a 72-page summary report offering recommendations to address gaps in retirement savings based on race, ethnicity and gender.
As part of its 2021 study topics, the Council examined the underlying causes for gaps in retirement security experienced by people...
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401(k) plans must pass certain IRS-mandated nondiscrimination tests annually to confirm that highly-compensated employees (HCEs) do not disproportionately benefit and that no plan participant exceeded certain contribution limits. Often, these tests are completed as soon as possible following a year...
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With Wall Street having another banner year, 2021 apparently was the year of standing pat, as 401(k) investors were content to watch their balances grow, according to the Alight Solutions 401(k) Index.
Net trading activity for the year was only 0.53% of balances, the lowest on record for the 401(k...
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Defined contribution plans have outstripped defined benefit plans in number of accounts, assets, employers offering them and participants. But a recent study that examines the cost of both kinds of plans challenges the notion that bigger is synonymous with better.
In “A Better Bang for the Buck 3....
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Against a backdrop of record-setting litigation and workforce management challenges, many retirement plan committees are asking what steps they can take to put participants on a path to creating a fully funded retirement income stream.
To address those challenges and more, a new blog post from...
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