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Retirement Income
New results from the Retirement Clearinghouse’s Auto Portability Simulation (APS) model further reveal the potential for auto portability to dramatically increase retirement savings.
Based on new assumptions that increase the model’s predictive accuracy, the firm’s resulting paper—Revisiting...
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Call it the not so Solo 401(k). We’ve received questions from some American Retirement Association (ARA) members regarding the impact of the long-term part-time employee rules (LTPTE rules) on Solo 401(k) plans. Many sponsors of Solo 401(k) plans were given advice, and established plans with the...
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Required minimum distributions (RMDs) are more than regulatory requirements—they affect real people. In its latest issue of Employee Plans News, the IRS provides a refresher concerning the application of the RMD rules regarding plan beneficiaries.
Spousal Beneficiaries
Spousal beneficiaries...
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The Pension Benefit Guaranty Corporation (PBGC) reports that in 2023 it changed its actuarial valuation methods, but at the same time a report by the Office of the Inspector General (OIG) warns that the PBGC has more work to do with its financial recordkeeping.
Actuarial Changes
The PBGC in its...
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A report by The Pew Charitable Trusts released on Dec. 22 revealed that state automated savings programs in the United States have collectively reached over $1 billion in assets as of November. This development is part of a broader initiative to assist private sector workers, especially those...
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An increasing body of research and results seem to confirm that state-sponsored retirement plans—and auto-IRAs specifically—close the coverage gap, not only by providing a public option but also by encouraging higher private plan adoption.
Currently, 14 states have a mandate in place, with another...
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The IRS has issued a reminder that people born before 1951 need to take required minimum distributions (RMDs) from funds held in IRAs and other retirement plans by the end of the year. And in so doing, it provides an opportunity to in turn remind participants as well as clients whose participants...
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The IRS has just released new guidance in the form of questions and answers addressing several key provisions contained in the SECURE 2.0 Act of 2022.
The IRS advises that the notice (Notice 2024-02) is not intended to provide comprehensive guidance as to the specific provisions of the SECURE 2.0...
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The newest digital edition of ASPPA’s members-only magazine has been posted online!
You have a license to thrill—about the 2023 ASPPA Annual and the TPA Growth Summit! In this issue’s cover story, Genelle Brakefield and Melissa Terito discuss the highs and spies of those events. In our feature...
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The IRS on Dec. 20, 2023, issued the 2023 cumulative list of changes in plan qualification requirements for pre-approved defined contribution plans. The changes are contained in Notice 2024-03.
The 2023 Cumulative List is intended to assist providers applying to the IRS for opinion letters for the...
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The IRS on Dec. 18 issued tables of covered compensation under Internal Revenue Code (IRC) Section 401(l)(5)(E) and the Income Tax Regulations thereunder for the 2024 plan year. The tables are contained in Revenue Ruling (Rev. Rul.) 2024-01.
Rev. Rul. 2024-01 states that for purposes of...
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Generation Z—the youngest generation in the workforce—may also be the most interesting regarding retirement and preparing for it.
Studies reveal a mix—cacophony?—of behaviors and attitudes among its members that suggest it is a group that may be receptive to a range of approaches in working to...
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When participants earn benefits in a defined benefit plan (DB plan), they can also earn the permanent legal right to receive those benefits in the future. This can occur after a participant reaches certain milestones, such as attaining a certain age, or working for a specified number of years. This...
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We see it happen on a regular basis. Usually as the result of a miscommunication, a retirement plan sponsor makes an erroneous contribution to the plan. This can cause unintended and unwanted consequences, often including nondeductible and/or disallowed amounts. What can be done?
Contributions to...
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It’s a massive gap. Generation X says it will take $1,112,183 in savings to retire comfortably, yet they expect to have $661,013 saved. The $451,170 difference tops the expected shortfall facing Millennials and Baby Boomers.
According to a new Schroders survey, 45% of non-retired Gen Xers...
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The Pension Benefit Guaranty Corporation (PBGC) on Dec. 15 issued the interest assumptions under the asset allocation regulation for plans with valuation dates in the first quarter of 2024.
The assumptions are contained in a final rule that amends the PBGC’s regulation on Allocation of Assets in...
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Is IBM on to something?
Big Blue recently announced that they would end the company’s 401(k) match effective January 1, 2024, replacing it with a Retirement Benefit Account (RBA). It will replace the match with a fixed employer contribution of 5% of compensation plus a one-time 1% pay increase....
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More good news on (closing) the retirement plan coverage gap, specifically related to state auto-IRA mandates.
The American Retirement Association has long argued—and an increasing body of research confirms—that state-sponsored retirement plans close the coverage gap, not only by providing a...
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Delaware is joining the Partnership for a Dignified Retirement, an interstate consortium that helps states provide access to retirement plan coverage. The action brings Delaware’s program into formal cooperation with those of Colorado and Maine.
Colorado Gov. Jared Polis (D) signed the measure...
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Recently, I came across an announcement that IBM was making changes to its 401(k).
More specifically that, effective next year they were going to replace their matching contribution in their 401(k) with an employer contribution to a cash balance plan.[1] In the days that followed, the news was...
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