Why You Need to Consider Retirement Plan Advisor Due Diligence
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General Items Why You Need to Consider Retirement Plan Advisor Due Diligence Summary: If you serve on a plan committee and are considering adding an advisor or replacing one, you will want to delve into the details to ensure you get the best possible fit for your plan. Here are some of the points we recommend exploring when considering a plan advisory firm. Source: 401khelpcenter.com Employer Retirement Plans Comparison Chart for Small Businesses Summary: This chart provides a comparison of the features and benefits that apply to retirement plans that can be sponsored/adopted by small business owners. Focus on the areas that are important of the business owner, so as to help ensure that the plan that is chosen is the plan that is most suitable for the business. Source: Retirementdictionary.com Pros and Cons of Converting to a Roth 401k Summary: The option to use Roth's inside workplace plans has been gaining ground, mostly because Roth accounts offer powerful long-term tax benefits -- for some savers. But even if your employer decides to offer the new Roth conversion option, it will come with some drawbacks that should give you pause. Here are some considerations. Source: Reuters.com Taxpayers May Be Missing Out on Retirement Savings Credit Summary: American workers may be missing out on a valuable tax credit this year. The Internal Revenue Service's Retirement Savings Contributions Credit, also known as the Saver's Credit, is available to low- to moderate-income workers who are saving for retirement, yet just 20 percent of American workers with annual household incomes of less than $50,000 are aware of the credit. Source: 401khelpcenter.com Considerations When Selecting a Plan Provider Summary: While selecting your provider may feel like a daunting task, there are staple elements that should always be considered when choosing one. This article lays out five crucial items plan sponsors should examine when choosing a retirement plan provider. Source: Plansponsor.com
Compliance and Regulatory Related 2013 IRA Compliance Calendar: Dates to Remember Summary: If you are involved in administering IRA accounts or even have an IRA account, here are some key dates you may want to be aware of. Source: Inspirafs.com Experts Offer a 2013 To-Do List for Retirement Plan Sponsors Summary: Just like scheduling oil changes for a car, retirement benefit plan sponsors need to create a checklist of to-do's to ensure 2013 goes smoothly, consultants say. "All the little administrative things can trip you up, but it's worth taking the time at the beginning of the year to address administrative issues so you don't get huge headaches during the year," says Sam Henson, senior ERISA counsel for Lockton Retirement Services. Source: Workforce.com
Fiduciary Information and Insight Fiduciary Fitness Requires Training, or at Least the DOL Thinks So Summary: While there is no express ERISA requirement that fiduciaries be trained, the DOL seems to take the view that training is evidence of a fiduciary properly exercising his or her duty of prudence. Source: Benefitsbryancave.com 401k Plans: Reducing Risk, Managing Costs, and Increasing Employee Satisfaction Summary: 401k fiduciaries must recognize that their responsibilities have likely become much more demanding. After all, the duties of loyalty, prudence, and disclosure must reflect current facts and circumstances. One of these facts is that even though 401k plans are technically defined contribution pensions, each participant's 401k account must function as his personal, off-set defined benefit plan. What are some of the questions sponsors and 401k fiduciaries must now ask themselves? Source: Investmenthorizons.com How Plan Sponsors Can Limit Their Liability by Taking Care of the Small Stuff Summary: Small preventative steps can nearly eliminate all potential liability associated with establishing and maintaining a plan for the benefits of its employees. So this article is about how you can minimize your liability as a plan sponsor by taking care of the small stuff. Source: Rosenbaum Law Firm
Some Items of Interest to Advisors Advising 401k Plans: Are You Acting As an ERISA Fiduciary? Summary: To gain a marketing advantage some advisors and brokers willingly or inadvertently become plan fiduciaries assuming personal liability imposed by ERISA. Providing investment services to 401k plans is not without pitfalls. However, if one understands how the services provided fit into the regulatory framework, the assumption of fiduciary responsibilities and liability can be avoided. Source: Lewis and Roca LLP
Insights: Studies, Research and White Papers Qualified Plans and Compensation Planning Under the New Tax Law Summary: Employers and employees should take a fresh look at the opportunities to defer compensation in light of the American Taxpayer Relief Act of 2012. Qualified plans may be used in a prudent fashion to avoid some taxes and reduce the impact of others. Because qualified plans provide significant tax benefits to both the employer and the employees, employers will want to make sure they maximize their use, while minimizing any potential risks, through creative, employer-specific plan design changes. Source: PwC Human Resource Services Many Canadians Also Not Confident of Having a Financially Comfortable Retirement Summary: Twenty-four percent of Canadian pre-retirees (working, age 50-65 with at least $50,000 in investible assets) are not confident that they will be able to live comfortably in retirement and about half of Canadian pre-retirees expect to have a lower standard of living compared with their existing lifestyle, according to a new study by LIMRA. Source: 401khelpcenter.com Employers Making Retirement Readiness a Top Priority Summary: Employees are beginning to realize they cannot rely on public pension plans for retirement security. The 401k plan must become more of a pension fund like plan. The less decisions the employee has to make the greater the success. Source: 401kplanadvisors.com Designing DC Plans Continues to Evolve Summary: A Q&A with PIMCO's Chris Lyon and Lisa Florentine about how designing DC plans continues to evolve with increasing focus on reaching needed outcomes; that is, replacing a healthy percentage of a worker's pay throughout retirement. They discuss a multitier structure with target-date strategies, a broadly diversified core lineup, and perhaps a brokerage window. Source: Pimco.com
Target-Date Funds Diversification Pays Off for Target-Date Funds Summary: Target-date funds boomed in 2012 on both the growth and performance fronts. In many respects, of course, these investments were just partaking in the general success of the markets. But the funds' highly diversified nature also gave the offerings an additional edge last year, and true disappointments were in a distinct minority. Source: Morningstar.com Target-Date Funds Don't Guarantee Retirement Success Summary: The key to determining if a Target-Date Fund is the right choice for your retirement savings is to understand them. If you are considering a TDF for all or part of your 401k account or as an investment in general, here are two things to consider. Source: TheChicagoFinancialPlanner.com
Court, Legislative and Washington DC Bank of America Wins Suit Over Investing in Affiliated Funds Summary: Plan sponsors, especially those in the financial services industry, have some assurance about their right to invest in affiliated mutual funds and other assets for their retirement plans, based on a recent ruling by an appeals court. Source: Thompson.com
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