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Defined Contribution Plans
The IRS has announced cost-of-living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2023. The 2023 limits are contained in Notice 2022-55, released Oct. 21.
The limits for 2023 are as follows.
The limitation under Code Section 402(g)(1...
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Just as the Department of Labor (DOL) gets set to release a final regulation allowing the use of environmental, social and governance (ESG) factors by fiduciaries when selecting plan investments, another bill has been introduced in Congress that seeks to dial that back.
The Safeguarding...
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Retirement Income! There is a lot of activity, and it’s starting to take into account the needs of clients who are about to retire and who have retired for several decades of a new life chapter — finally! Not just a product and profitability focus — a focus on the diverse reality of real lives of...
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Legislation that could affect retirement plans is pending on Capitol Hill — the midterm elections loom and its remaining weeks after that will be a “lame-duck” session. But that may not spell doom for those bills, suggested American Retirement Association CEO Brian Graff at the Oct. 3 opening...
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We deal with a lot of gaps in our lives—gaps because there is a difference between what we want and/or expect and reality.
Among others, there are wealth gaps, communication gaps, generation gaps, and — when it comes to retirement — coverage gaps. But when it comes to helping people make good...
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New research finds that households with public-sector defined contribution (DC) plan participants who have a primary defined benefit (DB) plan feel more comfortable spending than those without a primary DB plan, but that comfort level may be short-sighted.
According to the research conducted by...
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The IRS on Sept. 26 in Notice 2022-45 announced that it is extending the deadline by which certain plans must be amended under the CARES Act and the Taxpayer Certainty and Disaster Tax Relief Act of 2020.
CARES Act and Relief Act
Specifically, the deadline is extended under Section 2202 of the...
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We don’t know all the particulars yet, but a number of pending excessive fee suits have announced settlements.
In a case of good news, bad news, the pace of excessive fee settlements seems to be accelerating (that would be the bad news), but the size of those same settlements seems to be declining...
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Another excessive fee suit—and this one involving proprietary funds—has been decided in favor of the plan fiduciaries.
The victor here—Goldman Sachs and its $7.5 billion 401(k) plan on behalf of some 35,000 participants, according to the lawsuit—another filed by Nichols Kaster PLLP (and MKLLC Law...
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Our industry has long fretted over how 401(k) participants will respond to volatile markets. And perhaps not surprisingly, these days the headlines are, generally speaking, full of “stay the course” assurances.
That said, as recently as a month ago the headlines — even OUR headlines read things...
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As the dust settles from the pandemic and we take stock of the debris, it’s instructive to consider how it affected retirement saving and retirement accounts. A recent study looks at that, and adds an historical perspective that also looks at the effects of another recent significant disruption. —...
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A new suit claims that the decision to retain proprietary funds in the 401(k) was “polluted by self-interest,” driven by a “blind preference” and that “defendants’ favoritism has led to the payment of excessive investment management fees.
This time the plaintiff is current participant Sandy...
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We now have legislative language for the Enhancing American Retirement Now (EARN) Act—and a quick review finds a change from the concept draft regarding catch-up contributions.
In June, the Senate Finance Committee approved the EARN Act by a unanimous 28-0 vote, but the legislation at that point...
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A case that hinged on the determination of fiduciary status based on control of plan assets—has been decided—again—in favor of the defendants.
The original suit (Rozo v. Principal Life Ins. Co., S.D. Iowa, No. 4:14-cv-00463-JAJ-CFB, 5/12/17), was brought by plaintiff Frederick Rozo[1] on behalf...
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ERISA’s anti-alienation provisions generally serve to protect/shield retirement assets from garnishment—there is, however, an exception—and Evan Greebel just found out the hard way.
In 2017, Evan Greebel was convicted of Conspiracy to Commit Wire Fraud and Conspiracy to Commit Securities Fraud as...
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The Plan Sponsor Council of America (PSCA) has released a new campaign to help American workers better understand their retirement plan and retirement readiness by “Knowing Your Numbers.”
The Friday after Labor Day has been designated 401(k) Day—a day to focus on retirement planning and...
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Amid the dog days of summer, 401(k) plan investors were light traders in July, according to the Alight 401(k) Index.
In fact, there were no above-normal trading days, as Wall Street posted its best month since November 2020, the firm notes in its July 2022 Observations. In comparison, the month...
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The July 31, 2022, deadline for restating pre-approved 401(k) plans has come and gone. If a plan missed that deadline, now what? A recent blog entry offers some suggestions.
July 31 was the deadline for the latest plan remedial amendment cycle (Cycle 3). In a recent entry in the JacksonLewis blog...
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Amid fears of rising inflation and ongoing market volatility, 401(k) participants remained busy but cautious traders in the second quarter of 2022.
According to the Alight Solutions 401(k) Index, net trading activity significantly favored fixed income during the second quarter, with 51 out of 62...
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So, how many 401(k) accounts do you have?
At the moment, I have four—one from each of the employers in my career (including this one), all except the first one (that one went for law school and a house downpayment). Apparently I’m not alone. A recent survey of Plan Sponsor Council of America...
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