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Defined Contribution Plans
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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An annual survey which looks at changes employers intend to make to their benefit plans in the year ahead finds that financial wellbeing and retirement readiness remain the top priorities.
Like prior years, 28% of large employers said they are most focused on addressing broad financial wellbeing...
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Amid the financial challenges of the pandemic and the Great Resignation, a new survey finds that employees are demanding more support from employers than ever.
The survey from Betterment’s 401(k) business found that, above in-office perks and vacation time, financial benefits are now a top...
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While the current environment appears ripe for self-directed brokerage accounts (SDBAs) as various plan participants welcome the opportunity to select investments that reflect their values and priorities, plan sponsors should carefully consider the tradeoffs, a new study suggests.
While SDBAs...
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It was (another) volatile, uncertain year—but those year-end 401(k) statements should provide some welcome news for participants.
Rebounding from an omicron-depressed November, the average 401(k) average 401(k) balance of older (age 55-64) workers with more than 20 years of tenure soared 3% in...
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Last year brought a variety of trends to defined benefit plans and those who run and benefit from them, notes a recent report looking at some of the key developments in 2021.
October Three, which tracks two hypothetical DB plans—one that is invested in a more traditional way and another invested...
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Looking ahead to next year, there are a number of evolving issues and threats that defined contribution plan sponsors need to be prepared for, a new white paper suggests.
“As we turn our sights to 2022, the memories of the last two years serve as motivation to focus our efforts on continued...
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A new report from the Congressional Research Service (CRS) provides an illustration of the shift from defined benefit plans to defined contribution plans that has taken place in the last 40 years.
“One of the notable trends in the U.S. retirement system over the past five decades is that private-...
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Errors: not inevitable, but also not unusual. When they concern compliance with the Internal Revenue Code and regulations that apply it, one of the steps that can be taken is to use the Employee Plans Compliance Resolution System (EPCRS). A Dec. 6 session of the ASPPA Winter Symposium took a look...
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The SECURE Act is about to celebrate its second birthday, and the changes it made are still the subject of active discussion. Among them are the provisions that concern long-term part-time (LTPT) employees, which ushered in new treatment regarding their eligibility to participate in an employer’s...
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While plan sponsors and DC specialists continue to share views on many aspects of plan support and service, a new survey finds that DC specialists have an opportunity to further demonstrate the value they provide.
According to the third edition of Voya Investment Management’s survey of plan...
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A record number of employees are eligible for and participating in 401(k) plans, and employers are increasing their default deferral limits in the wake of the SECURE Act, the Plan Sponsor Council of America has found.
Several factors shaped the 2020 retirement plan year—the pandemic and ensuing...
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Notwithstanding market volatility and concerns about rising inflation and the Omicron variant, November apparently was another light trading month for 401(k) investors.
On average, net daily trading activity was 0.009% of 401(k) balances and there were no days of above-normal activity, according...
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The rules and regulations governing distributions have changed in the last two years. In a recent ASPPA webcast, two experts provided some helpful reminders.
In “FAQs about Distributions—it’s My Money and I Want it Now,” Robert M. Richter, J.D., LL.M., APM, American Retirement Association...
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Concerns about the Omicron variant—and possible responses to it—capped off a volatile month for U.S. stock markets—and it made for a bumpy ride for the average 401(k) as well.
The Dow dropped 3.7% in November, while the S&P 500 shed 0.8% and the NASDAQ managed to eke out a 0.25% gain. On the...
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While it’s the celebration following a successful harvest held by the Pilgrims and members of the Wampanoag tribe in 1621 that provides most of the imagery around the holiday, Thanksgiving didn’t become a national observance until much later.
Incredibly it wasn’t marked as a national observance...
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The number of Gen Z investors across the firm’s retirement platform nearly doubled from a year ago, according to Fidelity’s third quarter retirement analysis, reaching a record 1.4 million.
And while it’s still early in their careers, Fidelity’s data suggests that Gen Zers (born between 1997-2012...
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