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Retirement Income
The challenges facing the Social Security system are well-known and deep-seated. Nonetheless, significant confidence about the future of the system persists among pre-retirees, a new study shows.
Kiplinger and Personal Capital report that they found their 2020 Retirement Survey that nearly two-...
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The chairman of the House Ways & Means Committee has released a new legislative framework for the 117th Congress that includes an ambitious retirement policy agenda.
In what has long been a priority for him, committee chairman Rep. Richard Neal (D-MA) is calling for implementation of auto-...
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The Pension Benefit Guaranty Corporation (PBGC) has issued a final rule adjusting civil penalties for failure to provide certain notices or other material information and for failure to provide certain multiemployer plan notices. The PBGC is required to amend its regulations annually to adjust...
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In a year in which uncertainty and confusion reigned supreme, almost overnight our industry packed up and went home one night and opened up for business the next day from… what seemed a zillion different locations.
Most doubtless did so anticipating a short disruption—a couple of weeks, a month...
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Traditional defined benefit plans ended 2020 modestly in the black, after spending most of the year underwater. The story has been a significant decline in interest rates (about 75 basis points) and an increase in liabilities (11%-15%, depending on duration), offset by an increase in asset values—...
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Reactions to COVID-19 and the impact on consumer confidence is prompting many consumers to reassess their retirement and financial plans.
A majority of today’s workers and retirees range from feeling cautious to pessimistic about the economic outlook for 2021, according to the Principal Financial...
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The pandemic has prompted a high number of Americans to take money out of their retirement accounts, according to a recent study.
How high? Kiplinger and Personal Capital report that they found in their recent study that 60% of Americans have borrowed or withdrawn funds from their 401(k) or IRA...
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The IRS has updated the procedures for determination letter requests. The new procedures are outlined in Revenue Procedure (Rev. Proc.) 2021-04.
Rev. Proc. 2021-04 is a general update of Rev. Proc. 2020-4, https://www.irs.gov/irb/2020-01_IRB#REV-PROC-2020-4 which sets forth:
general information...
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CalSavers, the state-run retirement program for employees whose employers do not offer a retirement plan, grew in the fourth quarter of 2020 while the opt-out rate held steady, according to the CalSavers Retirement Savings Board.
Growth
The board reports growth in registrations, accounts and...
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The Pension Benefit Guaranty Corporation (PBGC) is issuing a final rule amending its regulations on Allocating Unfunded Vested Benefits to Withdrawing Employers (29 CFR part 4211) and Notice, Collection, and Redetermination of Withdrawal Liability (29 CFR part 4219). The rule provides simplified...
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While 2020 proved to be a volatile one for U.S. stock markets, it also proved to be record-breaking—and that bodes well for the average 401(k) balance.
That’s right—after plunging into a bear market earlier in the year by the end of 2020, the S&P 500 climbed 16.3% to end the year at a record,...
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With one of Georgia’s two U.S. Senate races called so far, Democrats are now just one seat away from control of that chamber.
Democrat Raphael Warnock has been projected to win Georgia’s U.S. Senate runoff election against Sen. Kelly Loeffler (R), who was appointed to the seat in December 2019 to...
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Sometimes it’s best not to pick a fight with Congress, because the lawmakers will likely have the final say. Such is the case with respect to the deductibility of eligible expenses under the Paycheck Protection Program (PPP).
The Treasury Department and the IRS on Jan. 6 issued guidance...
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By some measures, corporate pension plans’ fortunes improved in 2020; by others, they did not. A new analysis reports that for private-sector DB plans’ funded status, 2020 was a wash.
Willis Towers Watson reports that pension plan assets among the plans it studied increased by $80 billion....
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The Department of Labor (DOL) has indicated, at least in one case, that it will allow defined contribution plans to offer indirect investment in private equities. A recent blog entry offers food for thought regarding private equity and considerations concerning such investments.
In “Understanding...
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At the end of every year, and as we approach a new one, it’s natural to look back at experiences and lessons learned—and to ponder ways to apply them productively going forward. Here’s some thoughts from 2020 that I hope will help you do just that.
3 Things That (Seem to) Scare Plan Sponsors...
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There is a lot to unpack in the recently passed COVID relief legislation, but the most significant element for plan sponsors impacted by the COVID-19 pandemic may well be the “temporary rule preventing partial plan termination.” Here’s what it means for you—and your plan sponsor clients.
What is a...
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Following a month when all trading days favored fixed income, 401(k) investors resumed trading into equities, according to the latest Alight Solutions 401(k) Index.
With the S&P 500 posting its best November ever, there were nine days during the month where net trades went from fixed income...
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We are on the cusp of a new year, and there are some important developments to keep in mind as 2021 arrives.
Required Minimum Distributions
The Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019, enacted on Dec. 20, 2019, raised the age for required minimum distributions...
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Division N – COVID-Related Tax Relief
Sec. 276. – Clarification of tax treatment of forgiveness of covered loans. The provision clarifies that gross income does not include any amount that would otherwise arise from the forgiveness of a Paycheck Protection Program (PPP) loan. This provision also...
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