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Defined Contribution Plans
This Father’s Day, I’ve been thinking about my dad, the life he led, the choices he made, and the legacy he left behind.
I’m not talking about money. In fact, I didn’t learn anything about finance from my dad—he avoided big purchases with the fervor of Ebenezer Scrooge, though he’d spend that...
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If you were wondering how long it would take someone to file suit regarding events related to the COVID-19 pandemic—wonder no more.
In what seems to be the first suit filed against a 401(k) plan post-COVID-19 outbreak, the suit—filed June 8 in the U.S. District Court for the District of Rhode...
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In the midst of historic market volatility, a new survey of retirement plan sponsors and retirement plan advisors reveals gaps in focus—and perception—about the role of fixed income investments in a fully diversified 401(k) menu.
The new survey—sponsored by Janus Henderson Investors, conducted...
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Economic stress caused by the COVID-19 pandemic has led to new pressures on retirement plan sponsors, including consolidation. One result may be additional impetus for multiple employer plans and pooled plan arrangements, a recent blog post suggests.
In “Will COVID-Related 401(k) Plan...
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Even with similar salary levels, new research finds large differences in the amounts that people save for retirement, which can have a big impact on savings rates over time.
In an inaugural research report, “The 3% Difference: What leads to higher retirement savings rates?” the Employee...
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June has already been a busy month for 401(k) litigation, and the law firm of Capozzi Adler PC has filed yet another such suit.
Earlier last month they filed suit against Aegis Media Americas Inc.—the firm that brought suit about a year ago against the BTG International Inc. Profit Sharing 401(...
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The IRS says in Announcement 2020-7 that it plans to issue opinion letters concerning the third six-year remedial amendment cycle for pre-approved DC plans by Jun 30, 2020 or shortly after that date. It made the announcement on June 1, 2020, which is also the date on which it is effective....
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It’s said that April showers bring May flowers—and the average 401(k) balance continued to bloom in May. In fact, most are back to, and in many cases ahead of, where they began the year.
According to estimates from the non-partisan Employee Benefit Research Institute (EBRI), the average 401(k...
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While there's still no Form 5500 filing relief, Notice 2020-35, issued May 28, provides additional administrative relief regarding deadlines applicable to employment taxes, employee benefits and exempt organizations affected by the pandemic.
Under Code Section 7508A, the IRS is postponing...
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Unfortunately, the effects of the pandemic include layoffs. That has the greatest impact on employees, but it has many consequences for employers, as well. Retirement plan administration is not untouched, and that includes 401(k) plan audits.
In a recent entry in the 401(k) Blog of retirement...
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It’s not as though we haven’t been through tumultuous times before, but is this time different?
Just four months ago, we were reviewing 2019 401(k) investment performance where the S&P 500 index rose 28+%, the Dow Jones Industrial Average (DJIA) gained 22+% and the NASDAQ was up an even...
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After a turbulent first quarter, 401(k) investors responded with a slower trading month in April, according to the Alight Solutions 401(k) Index.
There were only three days of “above-normal” trading activity, all within the first week of the month. This comes after the firm reported that there...
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You have to hand it to the Washington Post. At a time when millions of working Americans are finding a financial lifeline in their retirement savings, they managed to find in the questionable life choices of a half dozen individuals a condemnation of the nation’s private retirement system.
The...
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While only 5.6% of plan participants changed their portfolio allocations during the first quarter, new research finds that there is significant variation based on how those participants were invested.
Of participants who were self-directing their portfolios, nearly 11% changed their allocations...
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Many employers are taking steps to make it easier for employees to access their 401(k) plans under the CARES Act, but some are considering more drastic action, according to new survey results.
Nearly two-thirds of respondents (65%) in the latest pulse survey by Willis Towers Watson increased...
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After a rough March, the average 401(k) regained some ground in April.
In March, the average 401(k) account for younger (25-34), less tenured (1-4 years) workers, plunged 7.3%. Older (age 55-64) workers with more than 20 years of tenure also shed 7.3%, according to estimates from the...
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Communicating with retirement plan participants is always important; and aside from law and regulation requiring it, such communications can serve participants well and help make a retirement plan more effective and meaningful. But doing so during a pandemic poses challenges and can require...
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401(k) fees paid from plan assets reduce participant returns dollar-for-dollar. These lost earnings can dramatically erode a 401(k) account balance over time, so employers have a fiduciary responsibility to pay only “reasonable” fees—so excess fees do not reduce participant returns needlessly. To...
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A senior Republican member in the House has introduced legislation to help those whose retirement savings have been harmed by the economic impact of the COVID-19 pandemic.
Rep. Patrick McHenry (NC), who serves as the ranking Republican on the House Financial Services Committee, introduced the...
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ASPPA provides extensive coverage concerning a host of aspects of the pandemic and its consequences for plan sponsors, administrators, service providers and participants. This includes how developments resulting from it have affected plans and participants, and how they can be addressed; discussion...
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