401k Plan Sponsors Take Note, Year-End Notice Deadline Is December 1st
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Compliance and Regulatory 401k Plan Sponsors Take Note, Year-End Notice Deadline Is December 1st Summary: As the calendar year rapidly wanes, 401k plan required notices for calendar-year plans will soon be due. Three of the most common year-end notices are Section 401k plan safe harbor notices, Qualified Default Investment Alternative notices, and automatic contribution notices. These notices must be provided no more than 90 days (and not less than 30 days) prior to the new plan year. Source: Natlawreview.com Safe Harbor 401k Plan for 2016 Summary: It's that time of year again -- time to consider whether to start or continue a safe harbor 401k plan for next year. Plan sponsors that make employer contributions can reap additional benefits by using a safe harbor plan design. This article will highlight the rules for safe harbor 401k plans. Source: Mhco.com Employer-Sponsored Retirement Plans to Face More Scrutiny in 2016 Summary: On the heels of the DOL's Audit Quality Study report issued May of 2015, the IRS is forming the Employee Plans Audit Team whose responsibility will be to review internal compliance controls for large employee-sponsored retirement plans. The IRS defines a large plan as those plans having at least 2,500 participants. Source: Schneiderdowns.com MEP and the Common Paymaster: A Siren's Call Summary: There's a continual siren's call in the marketplace, enticing many to believe that the DOL's seminal MEP Advisory Opinion, 2012-04 has limited applicability to arrangements like a PEO sponsored MEP. Like the siren's call, such statements by these promoters are alluring, but potentially dangerous. Source: Businessofbenefits.com
General Items Mobile Retirement Planning Tools Summary: This Retirement Plan Monitor Report specifically analyzes resources that help participants understand their current level of retirement readiness, such as income projection tools, retirement savings calculators and peer comparison tools. Source: Corporateinsight.com Adding Mobile Apps to Your 401k Plan Summary: More participants are looking to their phones to learn about retirement plans and saving. The shift in the usage of mobile apps by retirement plan participants is increasing across all demographics. As a result, more plan sponsors are looking to expand their plan's mobile capabilities. Source: Planadviser.com
403(b) Plans Orphan Accounts and How to Help Orphaned 403(b) Clients Summary: In managing the 403(b) accounts held by de-selected providers, financial advisors should have a clear understanding of the orphan account requirements and they will also want to help their employer clients understand those requirements. Source: Ntsa-net.org
Fiduciary and Plan Governance Material Delegating Fiduciary Risk and Responsibility Summary: Many plan sponsors are seeking to outsource these duties and associated risks. Because the selection and subsequent monitoring of service providers is a fiduciary duty itself, plan sponsors can never entirely delegate their fiduciary responsibilities. However, plan sponsors may delegate certain fiduciary duties to service providers, usually as a 3(16), 3(21) or 3(38) fiduciary. Source: Unitedretirement.com What is a Trustee? Your Fiduciary Duties Summary: Charlie is in the annual 401k plan review meeting and his boss recommends that he be named a trustee of the company 401k plan. Charlie has been handling much of the day-to-day processing for the plan, so getting a title to go along with his role seems like a good thing. But is it? Source: Benefit-Resources.com
Insight: Studies, Research and White Papers Reducing Leakage to Keep Participants on Track for Retirement Summary: Article addresses two ways participants might empty their retirement asset pool and steps that a plan sponsor can take to help prevent participants from negatively affecting their retirement readiness. The two ways are: hardship distributions and distributions after a participant separates from employment. Source: Pension-Consultants.com 401k Participants Want Advisor Who Acts in Their Best Interests Summary: According to a new survey of over 1,000 401k participants by Financial Engines, what employees want next is a person in their corner. The survey shows that a majority of 401k investors not currently working with a financial advisor are interested in working with a financial advisor in the future. Source: 401khelpcenter.com
Items of Special Interest to Service Providers Ken Fisher Pounces on a Fat-Margin 401k Opportunity Summary: The largest RIA in the nation has quietly entered the 401k arena by leaping through a de facto loophole that gives fiduciary advisors a pass on using an open architecture when it comes to manager selection, and he's not alone. Source: Riabiz.com Cogent Reports: DC Advisors Increasingly Turn to External Managers for Target-Date Funds Summary: Proprietary target-date fund offerings are no longer a shoo-in. Nearly half (47%) of all advisors selling defined contribution retirement plans now recommend an external manager for target-date funds rather than the proprietary target-date funds offered by the plan recordkeeper. Source: Marketstrategies.com
Court and Legal Allianz, PIMCO Targeted in Class-action 401k Suit Summary: Allianz Global Investors, Pacific Investment Management Co., and their parent company Allianz Asset Management are the newest targets in yet another class-action suit alleging breach of fiduciary duty due to excessive 401k fees. Source: Investmentnews.com (registration may be required)
DOL's Re-Proposed Fiduciary Rule Impact of Platform Provider Carve-Out on 401k Plans Remains Unclear Summary: The article discusses proposal of the DOL to include "carve-outs" on the scope of the fiduciary rule and invest. advice definition for recordkeepers and TPAs of 401k plans. Discussion of how the carve-out process works and its associated requirements is provided. Overview of the possible implications of carve-out process in both retirement providers and sponsors is also mentioned. Source: Wagnerlawgroup.com DOL's Conflicts of Interest Rule: Two Views From the Trenches Summary: After presenting an update on the DOL's proposed Conflicts of Interest Rule, the author got two decidedly different reactions from advisors present. Source: Fi360.com
Marketplace News Schwab Introduces Advisor Managed 401k Accounts
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