Defined Contribution Plans

How a plan is designated as a church plan, and whether it can offer a 403(b) and what kind of plan document it can use, depends of a variety of factors.   Following is a specific scenario that serves as an interesting case study in making these determinations.   An employer calls itself a... READ MORE

The cost of investing in equity and hybrid mutual funds through 401(k) plans fell again in 2019, continuing a downward trend that has persisted for nearly 20 years.   The Investment Company Institute reports in “The Economics of Providing 401(k) Plans: Services, Fees, and Expenses, 2019” that 401... READ MORE

For reasons that elude me—other than perhaps because it has a “click bait” headline—the folks at Bloomberg recently published an “op-ed” titled, “401(k) Plans No Longer Make Much Sense for Savers.” Sadly, it’s gotten some attention, aided and abetted even by industry publications, some of which... READ MORE

There is still a lot of 2020 left to go. But 2021 is fast approaching, and a July 22 Plan Sponsor Council of America (PSCA) webcast offered ideas on how to prepare for that. In “Year-End Checklist: COVID-19 issues and Preparing for 2021,” three Winston & Strawn LLP attorneys—Ariane Andrade, an... READ MORE

A review of recent research suggests that many 401(k) plan sponsors and providers are currently underestimating the power of digital design in helping participants make better retirement savings choices.    Appearing in the Harvard Business Review, “How Digital Design Drives User Behavior” by... READ MORE

We could all use some good news—and it looks like those Q2 statements will bring some.   In what was the best quarterly market in decades, the average 401(k) account for younger (25-34), less tenured (1-4 years) workers surged 17.6%, while that of older (age 55-64) workers with more than 20 years... READ MORE

Trending with the recent market volatility, the average account balance for plan participants within self-directed brokerage accounts was down in the first quarter, while trading volumes were higher, according to Charles Schwab’s latest SDBA Indicators Report.  The average account balance finished... READ MORE

There’s generally not much you can learn from litigation settlements—the parties mostly agree to disagree, and the issues raised remain largely unresolved. But there are exceptions.   When the parties to a potential settlement present it to the court for approval, they take pains to point out... READ MORE

Summer is here, and part of the heat this year is compliance-related. Here are some deadlines to keep in mind:   July 15, 2020   Date by which, under Notice 2020-23 and 2020-32, certain actions that were due to be performed on or after March 30, 2020, and before July 15, 2020 can be performed... READ MORE