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Defined Contribution Plans
Temperatures continued to rise in August, but the increase in average 401(k) balances cooled off a bit.Not that the hot streak abated much. According to the nonpartisan Employee Benefit Research Institute (EBRI) found that the average account balance for younger (age 25-34), less tenured (1-4 years...
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Being prepared not just for a rainy day but for years — perhaps many — of post-workforce life drives strategies and safety nets. And analyses often warn that all the effort is insufficient. But panelists at a recent discussion concerning studies on retirement income suggest that the prospects for...
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The IRS has announced that it is extending the temporary nondiscrimination relief for closed defined benefit plans.The IRS made the announcement in Notice 2017-45, which says that the IRS has extended the relief provided in Notice 2014-5 by making that relief available for plan years beginning...
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The House and Senate returned Sept. 5 from a month-long break facing an extremely busy legislative calendar.The legislative agenda was already packed full, with the need to approve funding legislation for fiscal year 2018 (which begins Oct. 1), increase the debt limit, determine whether to revisit...
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Published reports say that President Trump’s top aides and congressional leaders have made “significant strides” in shaping a tax overhaul — and yes, Rothification remains on the table.Politico, citing five sources familiar with the behind-the-scenes talks, reports there is “broad consensus” on...
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On Aug. 29, the American Retirement Association requested relief for taxpayers, plan sponsors and service providers adversely affected by Hurricane Harvey.“At this very moment, the remnants of Hurricane Harvey continue to cause significant damage along the Texas/Louisiana Gulf coasts,” write ARA’s...
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A new report finds that recordkeeping, trust and custody fees didn’t drop for the first time since 2010. Then again, they didn’t increase, either.According to the 12th Annual NEPC Defined Contribution Plan and Fee Survey, recordkeeping, trust and custody fees bucked the longstanding trend of...
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Many argue that re-enrolling 401(k) participants into target date funds (TDFs) benefits them and their beneficiaries. But a recent blog entry argues that it’s also good for a plan itself.In “Seven Reasons to Re-enroll Your 401k Participants,” Robert Lawton outlines reasons why he believes re-...
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Financial stress and everyday money matters are hindering Americans’ retirement savings efforts and affecting the job performance of many employees, a new nationwide survey reveals.Consisting of 1,000 workers with access to a 401(k) plan with half actively contributing to their plan and half not...
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It’s a summertime trap: the poor baseball player trapped between bases who is going to be tagged out no matter which direction he goes. A recent blog entry argues that such a pickle faces employers and plan administrators too concerning distributions, but at any time of the year.Any employer and...
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State-run plans slowly are gaining traction. But while those plans may provide a safety net for those whose employers do not offer a retirement plan, their existence does not necessarily portend a stampede of employers dropping their plans in favor of what the state may offer. In a recent survey,...
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The notion that people need to save more for retirement is not new. Recent research suggests that in sentiment many employers agree, but may not put that in practice as fully as they could. Transamerica Center for Retirement Studies (TCRS) recently released “All About Retirement: An Employer...
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The fiduciary regulation got another day in court last week — and, for a change, this time the regulation’s challengers appeared to draw blood.The setting was oral arguments before the 5th Circuit Court of Appeals, with the Labor Department making its case for the regulation challenged by a group...
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As more states look to establish retirement savings plans for private sector workers, a new report by LIMRA’s Secure Retirement Institute finds that 55% of DC plan sponsors indicate they are “very likely” or “somewhat likely” to stop offering their DC plan in favor of having their employees enroll...
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A new study finds a higher rate of workplace retirement plan participation, and claims that a widely cited measure of participation understates reality by about 5 percentage points.The new information comes from a study by the Investment Company Institute (ICI), based on newly available IRS data....
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The American Retirement Association (ARA) on July 17 sent a letter to Senate Finance Committee Chairman Orrin Hatch (R-UT) expressing its strong support for tax incentives to encourage retirement savings.“The goals of achieving a tax code that is efficient, fair, and increases the financial and...
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“Too expensive to set up” or “my organization does not have the resources” were the top two reasons cited by small to midsize businesses for not offering a retirement plan to their employees, according to new research by Pew Charitable Trusts.In a June 2017 issue brief, “Employer Barriers to and...
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Employees who may have the greatest longevity at a particular office in terms of circuits around the sun and as part of payroll, have — and pose — concerns unlike those of younger cohorts. Two recent blog entries discuss different aspects of the retirement-related challenges attendant to older...
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While they’re not quite as strong as the numbers for the first quarter of the year, there should be plenty to celebrate in this year’s June 30 participant statements.For younger (age 25-34), less tenured (1-4 years) workers, the average 401(k) account balance has risen 21.7% year-to-date (that’s...
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The pilot program for OregonSaves, the state-run auto-IRA program for private-sector workers in Oregon, was launched on July 1. The program is set to roll out in phases, starting in 2018 with larger businesses and over time to smaller businesses.The pilot is for employers that expressed interest in...
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