Five Hot Trends in Retirement Planning
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Items of Special Interest to Service Providers Five Hot Trends in Retirement Planning Summary: Retirement planning might be based on a few fundamental financial concepts, but the specifics are constantly changing. Technology and federal regulations have brought several big changes for employers and employees. Here are five trends in retirement planning every retirement plan sponsor and participant should know about. Source: Bcigroup.com DOL Sets Fiduciary Regulation Hearing Dates Summary: The DOL has announced public hearing dates of August 10-12, and August 13 if necessary, for its proposed conflict-of-interest (fiduciary definition) regulations. Source: Ascensus.com
General Items Plan Design and After-Tax Contributions Summary: Recent IRS guidance has created a new interest in "after-tax" contributions as a plan provision because they can be used to maximize plan contributions and reduce future tax liabilities. With proper plan design, after-tax contributions can be a valuable benefit to plan participants. This is a discussion of some strategies and caveats. Source: Kravitzinc.com CITs: The Truth About Regulations, Transparency and Eligibility Summary: There's a lot of interest in collective investment trusts (CITs). CITs are pooled investment funds that are designed exclusively for qualified retirement plans. But, there's also a lot of misinformation and this article addresses some of the many misconceptions. Source: Invesco.us.com
Fiduciary and Plan Governance Material Money Market Funds Changes - Implications for Fiduciaries Summary: New SEC money market funds rules that go into effect in 2016 will impact nearly every retirement plan that uses such funds as investment options or to facilitate plan administration. Plan sponsors, investment committees, those who advise them, and plan administrators should understand the upcoming changes in order to determine what steps that will be required or may be beneficial to take regarding such funds, and to consider their alternatives. Source: Reliance-Trust.com Ever-Increasing Duties for Plan Fiduciaries Summary: There is little doubt that the fiduciaries of employee benefit plans are under closer scrutiny than ever before. As a result, the duties that are imposed on those fiduciaries are increasing. Two recent additions to the list of duties have emerged from guidance issued by a regulator and from a judicial decision. Source: Eisneramper.com
403(b) Plans A 403(b) Plan Termination Checklist Summary: If a 403(b) plan termination is defective, individuals receiving amounts from the erstwhile termination may not meet the IRS criteria for having a distributable event for a 403(b) plan. That could have a further ripple effect if the individual has rolled over amounts to another eligible retirement plan or to an IRA. This article can assist employers who intends to terminate its 403(b) plan. Source: Ntsa-net.org Analysis and Recommendations Regarding 403(b) Plans Summary: In this 258 page report, the Employee Plans Subcommittee of the ACT did a reexamination of the current state of the 403(b) community seven years after the issuance of the 403(b) final regulations. Specifically, the EP Subcommittee endeavored to identify the key issues that are plaguing the ability of the 403(b) plan sponsor to remain in compliance with requirements of the Internal Revenue Code. Source: Irs.gov
Insight: Studies, Research and White Papers Canadians Confused About TFSAs Summary: Six years after TFSAs (Tax-Free Savings Account) were introduced, a Mackenzie Investments survey finds many Canadians still don't understand how they work. They're still not familiar with the basic elements of the program, meaning they risk not using their accounts to the fullest. Source: Benefitscanada.com 10 Best Practices for Global DC Plans Summary: This 24 page paper provides a list of 10 best practices for global plan sponsors to help companies better capitalize on the potential of DC plans to further both their own business objectives and the retirement readiness of their participants around the world. Source: Ssga.com 2015 Defined Contribution Plan Sponsor Survey Findings Summary: This 30 page report provides insight into plan sponsors' interpretation of the roles of their DC plans, goals and philosophies in providing retirement benefits, considerations driving plan-related decisions and actions underway to help employees reach retirement success. Source: Jpmorganfunds.com
Legislative and Washington DC Oregon Retirement Savings Bill Heads to Governor's Desk Summary: The Oregon Senate passed legislation Tuesday that will ensure every Oregonian has access to a safe, easy and effective way to save for retirement. The bill cleared the Oregon House last week and will next go to the desk of Governor Kate Brown for her signature. Source: 401khelpcenter.com
Court and Legal Using Your IRA to Buy a Business: Still a Risky Strategy Summary: The use of assets in an IRA to finance a new business is sometimes known as a ROBS or rollover for business startups. In a case where a ROBS was used, the Eighth Circuit concluded that a prohibited transaction occurred because the payment of compensation to the individual was essentially an indirect payment by the IRA to the individual. Source: Benefitsnotes.com
Compliance and Regulatory Summary: Forms 5500, Annual Returns/Reports of Employee Benefit Plan and Forms 5500-SF have a two-part question about plan compliance with the blackout notice rules. The first part asks if an individual account plan had a blackout period. If the answer is yes, the follow-up question asks whether a blackout notice was provided or if one of the exceptions applied. The IRS is monitoring compliance with blackout period and notice rules. This is a review. Source: Kravitzinc.com IRS on Section 401(k) Requirements Summary: The purpose of this worksheet and explanation is to identify major problems that relate to plans that include a cash or deferred arrangement. Generally, a "Yes" answer to a question on the worksheet indicates a favorable conclusion, while a "No" answer signals a problem concerning qualification of the plan. Source: Irs.gov IRS on Employee and Matching Contributions Summary: The purpose of this worksheet and explanation is to identify major problems that relate to plans providing for employee and/or matching contributions. Generally, a "Yes" answer to a question on the worksheet indicates a favorable conclusion, while a "No" answer signals a problem concerning plan qualification. Source: Irs.gov
Marketplace News BNY Mellon Unveils Planet DC Magazine Bogdahn Group Announces Expansion of DC Practice Pensionmark Introduces Custom Target-Date Solution Laura Grassi Joins Pentegra as Regional Director
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