Projected 2016 401k Plan Contribution Limits
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General Items Projected 2016 401k Plan Contribution Limits Summary: The tax law places limits on the dollar amount of contributions to retirement plans and IRAs. IRC Section 415 requires these limits to be adjusted annually for cost-of-living increases. The IRS generally announces any CPI increase around the third week of October. Based on current CPI information, we do not expect any increase in the 2016 contributions limits. Source: 401khelpcenter.com Summary: Collective Investment Trusts were not as widely accepted in DC plans due to operational constraints and a lack of information available to plan participants. But today there is growing interest in them. This article takes a look at some of the myths these investment products still carry and shed some light on their benefits and how they should be used. Source: Manning-Napier.com Five Steps Plan Sponsors Can Take to Help Improve Plan Outcomes Summary: Plan sponsors can put these five steps in place to help participants successfully navigate the path to retirement security. Source: Jpmorganfunds.com
403(b) Plans Proposed DOL Fiduciary Regulation May Lead to Unintended Roadblocks for 403(b)s Summary: The DOL has traditionally been very supportive of 403(b) modernization. In fact, they've encouraged it. Author writes, "That's why it is particularly curious that the DOL's proposed fiduciary regulation seem to introduce prohibitions that will likely prevent future modernization." Source: Principal.com Lesser Known Differences between 403(b) and 401k Plans Summary: The rules for 403(b) and 401k plans have become more similar, but a number of important differences remain. This article describes some of the less well known differences. Source: Aon.com
Fiduciary and Plan Governance Material Board Member Liability Under ERISA for Retirement Plans Summary: Because board members will be deemed to be fiduciaries of the 401k plan and other company retirement plans under ERISA's definition of a fiduciary, board members should have a thorough understanding of the role of a fiduciary and how to implement procedures to limit fiduciary liability. Source: Privatecompanydirector.com Changes in the Money Market Fund Rules: The Fiduciary Response Summary: The SEC's modifications to the money market fund rules won't become effective for approximately a year, but plan fiduciaries should already be considering what to do about them. Plan sponsors should be talking to their service providers about how to deal with the changes. In the context of investments, though, the question is, what changes? This topic is discussed in this article authored by Bruce L. Ashton of Drinker Biddle & Reath. Source: Reliance-Trust.com Market Volatility: How Concerned Should Retirement Plan Fiduciaries Be? Summary: Regardless of how many times we live through it, market volatility can be unsettling. Its impact is felt by both defined benefit and defined contribution plans. It raises questions and concerns for both plan participants and fiduciaries. However, the presence of market volatility provides an opportunity to revisit existing investment policy statements and risk management strategies. Source: Erisadiagnostics.com
Insight: Studies, Research and White Papers The RFP Process...Checks and Balances Summary: The focus of this paper is to provide an outline of best practices a Plan Sponsor can utilize to undertake a Request for Proposal (RFP) process for 457(b), 401(a), 403(b), grandfathered 401k. The information outlined in this document will apply to Plan Sponsors of all sizes. Source: Nagdca.org Retirement Assets Total $24.8 Trillion Summary: Total U.S. retirement assets were $24.8 trillion as of June 30, 2015, about unchanged from the end of March. Retirement assets accounted for 36 percent of all household financial assets in the United States at the end of the second quarter of 2015. Source: Ici.org Thirty Million Recently Tapped Retirement Savings for Emergency Summary: Thirty million Americans used money from their retirement savings to account for an emergency in the past year, according to Bankrate.com. In addition, 21 million Americans aren't saving for retirement at all. Source: Planadviser.com
Items of Special Interest to Service Providers Cerulli: DCIO Firms Must Identify, Engage, Nurture Emerging Retirement Specialist Advisors Summary: Cerulli Associates recommends that defined contribution investment-only (DCIO) firms and recordkeepers build a strategy to identify, engage, and nurture the "emerging" or next generation of retirement specialist advisors. Source: 401khelpcenter.com The Robo-Advisor: A Doomed Business Model? Summary: According to the latest Cerulli Edge report, robo-advisors are operating in a business threatened with commoditization, which will depress fees that are already under pressure from the entrée of Schwab and Vanguard. But, there may be a way out. Source: Thinkadvisor.com The SEC's Cybersecurity Enforcement Action and Risk Alert Summary: The SEC had a busy week regarding investment adviser and broker-dealer cybersecurity. Its new Risk Alert highlights some areas investment advisers and broker-dealers can focus on to stay in compliance with securities regulators and to keep clients' personally identifiable information. Source: Ria-Compliance-Consultants.com
Compliance and Regulatory IRS and DOL Announce Joint Delinquent Form 5500 Program Summary: The agencies will be reviewing payroll and plan data to identify sponsors who failed to file the Form timely. The goal, according to the IRS, is to ensure compliance with annual Form 5500 filing requirements, identify the reasons for non-compliance, and make recommendations to facilitate compliance for plan sponsors going forward. Source: Benefitslawinsider.com
Marketplace News Parthenon Capital Invests in Millennium Trust Transamerica Acquires Mercer's DC Book CAPTRUST Buys Parker Carlson & Johnson Financial Engines Expands Advisor Access Professional Capital Services Joins ABG Network A 'Rally for Retirement' on Capitol Hill NextCapital Upgrades Its 401k Digital Advice Platform SunGard Launches Financial Planning Apps BPAS Names New President of Recordkeeping Services
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