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Defined Contribution Plans

The American Retirement Association has outlined a number of high priority clarifications needed following passage of the SECURE Act.   In a letter dated Feb. 12, the ARA submitted to Carol Weiser, Benefits Tax Counsel at the U.S. Department of the Treasury, a list of “certain issues related to... READ MORE
Following up on a recent meeting with the Department of Labor, the American Retirement Association has outlined a number of items requiring additional guidance under the SECURE Act.   In the Feb. 12 letter, ARA recommended that the items listed below be the subject of DOL guidance, in the... READ MORE
The answers as to when retirement begins, and even what it means, are not the same as those even from not so long ago. A recent study offers a discussion of trends occurring to and affecting retirement.   In “From Traditional to Transitional: How the Nation’s Retirement Model Is Changing” (... READ MORE
The SECURE Act included three provisions that seek to foster greater adoption of guaranteed lifetime income products by DC plans and participants. But will they be enough?   According to a recent webcast by the Groom Law Group, only time will tell. In the hour-long session, the firm’s Michael... READ MORE
Whether or not the so-called “January effect” was in force, the average 401(k) balance got 2020 off to a good start in January.    That “January effect” is, of course, a hypothesis that there is a seasonal anomaly in the financial market where securities’ prices increase in the month of January... READ MORE
The average 401(k) balance did pretty well in 2019 – but how did participants respond?   Well, according to the Alight Solutions 401(k) Index, while 2019 had only 25 days of above-normal daily transfer activity – much lower than 2018’s total of 46 days – the net trading activity was the highest... READ MORE
With the SECURE Act recently enacted and several high-profile issues coming to the fore, 2020 has the potential to be a landmark year, according to a new white paper by MFS. In “Retirement Outlook 2020,” MFS Senior Retirement Strategist Jonathan Barry and DC Strategist Jessica Sclafani warn that... READ MORE
Are employers necessary for a successful retirement system? A new proposal suggests that their role be “jettisoned.”   Not one to simply “bash” the 401(k), and to his credit, Morningstar’s John Rekenthaler, who recently opined that the 401(k) had outlived its usefulness,[i] now offers an... READ MORE
Decumulation — actually tapping into funds set aside for retirement — garners less attention than accumulation. But a recent article takes a look at that lesser-explored aspect of retirement funding and argues for a strategic approach. In “Bridging the Retirement Gap: Crack the Nest Egg Before... READ MORE
That’s the premise behind a recent column by Morningstar’s John Rekenthaler, who writes that “the plans are as good as they can be under the current framework – and that's not good enough.”   I had the pleasure of meeting John a number of years back – and I’ve been keeping up with his writing... READ MORE
Think the last multibillion-dollar 401(k) plan had been sued? Guess again.   The latest to find itself served with a suit is health technology firm Cerner Corp., whose $2 billion plan has been accused of the assortment of fiduciary miscues typical of this case genre.   Specifically, four... READ MORE
American investors apparently are feeling more confident about their finances than they have in a long time, but concerns about risks to their retirement are lingering, according to a new study from Allianz. Data from the firm’s Quarterly Market Perceptions Study shows that Americans’ worries... READ MORE
In the ASPPA Webcast “The SECURE Act – What You Need to Know,” Bob Kaplan and Robert M. Richter reviewed major provisions of the SECURE Act that will affect the design and administration of retirement plans. Kaplan and Richter are the American Retirement Association’s Director of Technical... READ MORE
The IRS and the Department of Labor’s Employee Benefit Security Administration have issued a guide to help small businesses choose a retirement plan. “Choosing a Retirement Plan for Your Small Business” is a joint project undertaken by the two agencies. The publication encourages small businesses... READ MORE
Having multiple sources of income is key to security during retirement, says a recent report.   In “Examining the Nest Egg: The Sources of Retirement Income for Older Americans,” Frank Porell, a University of Massachusetts professor emeritus and Tyler Bond, the National Institute on Retirement... READ MORE
Recordkeeping data for the first half of 2019 shows that Americans were quite content saving in their 401(k) plans and taking advantage of the long-running bull market.     According to the Investment Company Institute’s latest recordkeeper data contained in “Defined Contribution Plan... READ MORE
The Plan Sponsor Council of America recently released its 62nd Annual Survey of Profit-Sharing and 401(k) Plans, documenting a record high rate of savings, alongside an uptick in Roth contributions and other trends. However, sometimes the things that don’t change can be just as telling… Target-... READ MORE
Recordkeeping data for the first half of 2019 shows that Americans were quite content saving in their 401(k) plans and taking advantage of the long-running bull market.   According to the Investment Company Institute’s latest recordkeeper data contained in “Defined Contribution Plan Participants’... READ MORE
A year ago, the average 401(k) balance went into 2019 with a bit of a hangover. This year the hangover could be for a different reason.  It’s easy to forget that in December 2018, the markets were so rough that the average 401(k) account balance for younger (25-34), less tenured (1-4 years)... READ MORE
Let’s say you are a plan advisor with experience advising on cash balance, age-weighted profit-sharing, or similarly designed retirement plans – and your client’s accountant calls in April with a problem.  Your shared client (with just a 401(k) plan) had a banner year and they are getting... READ MORE

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