Newsletter for February 8, 2016
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In This Issue
General Items
Opinion: Why Are We Third-World America When It Comes to Retirement?
Abstract: Author suggests that contrary to her assertions, Deputy Treasury Secretary Sarah Raskin's recent post on President Obama's plan to provide new retirement savings at work isn't going to create "inclusive prosperity."
Source: Huffingtonpost.com
Using HSAs to Fund Retirement
Abstract: If you offer a High-Deductible Health Plan to your employees, they probably have the ability to contribute to Health Savings Accounts. Author believes that nearly everyone eligible to contribute to a HSA should max out their HSA contributions before making any 401k retirement plan contributions.
Source: Lawtonrpc.com
Six Steps Towards Retirement for the Late Starter
Abstract: It's never too late to start saving for retirement. However, if you feel as though you are getting a late start and need to catch up on your retirement savings, here are six things to remember.
Source: Brightscope.com
Fiduciary and Plan Governance Material
Video: Eight Simple Steps to a Great Retirement Committee
Abstract: This webinar shares eight best practices for a great retirement plan committee. About 35-minutes including a Q&A session.
Source: Greenspringwealth.com
The Rise of the Checklist Fiduciary
Abstract: Discusses the trend among some Sec. 3(16) fiduciaries to commoditize and dumb down the essential fiduciary functions to the level of completing one or more checklists.
Source: Erisafiduciaryadministrators.com
Insight: Studies, Research and White Papers
A Study on the Psychology Behind Leakage of Retirement Plan Assets
Abstract: Survey of 5,000 retirement plan participants sheds light on leakage patterns, as well as on the thought process of job changers who are confronted with the challenge of "rolling in" retirement savings from a former employer.
Source: Dciia.org
American Views on Defined Contribution Plan Saving
Abstract: This survey polled respondents about their views on DC retirement account saving and their confidence in 401k and other DC plan accounts. Survey responses indicated that households value the discipline and investment opportunity that 401k plans represent and that households were largely opposed to changing the tax preferences or investment control in those accounts. Report is 32-pages.
Source: Ici.org
Target-Date Funds
Target-Date Funds Post First Annual Loss Since 2008
Abstract: A positive fourth-quarter performance was not enough to pull target-date funds out of negative territory for the year, as the Callan Target-Date Index posted a 2015 return of -0.86%, its first annual loss since 2008.
Source: 401khelpcenter.com
Target-Date Funds: The Next Generation, but Not a Silver Bullet
Abstract: Target-date funds are the new normal. Industry data indicates 72% of plan sponsors selected target-date funds as the qualified default investment alternative within in their respective plans. Despite wide-spread utilization, a surprising number of plan participants misunderstand this investment vehicle.
Source: Francisinvco.com
Most Target-Date Fund Investors Not Using All-In Approach
Abstract: Most defined contribution participants fail to use target-date funds properly because they invest in other options as well as the target-date funds, said a research report by Voya Investment Management. Only 15% of target-date users put all of their retirement money in these funds in 2015.
Source: Pionline.com
Legislative and Washington DC
Bill Introduced for New Type of Retirement Plan
Abstract: Sen. Jeff Merkley has introduced the American Savings Account Act of 2016, which is legislation that would create for certain private sector workers a portable retirement savings arrangement to be known as the "American Savings Account."
Source: Ascensus.com
Compliance and Regulatory
Why Should I Care About Retirement Plan Compliance, Anyway?
Abstract: Plan compliance sounds great, but is there really any risk of being audited? The answer is yes and article addresses the issue of why your retirement plans should be in compliance.
Source: Cammackretirement.com
DOL Targeting the Failure to Timely Commence Retirement Plan Benefits to Participants
Abstract: The DOL is now specifically investigating retirement plans to determine whether their plan sponsors have timely begun paying vested benefits to retirement-eligible participants.
Source: Sgrlaw.com
Correcting Missed Required Minimum Distributions
Abstract: Failure to distribute an RMD may result in plan disqualification and/or the imposition of a 50% excise tax on the participant or beneficiary. This article will explain the correction process that is available when a qualified plan fails to timely distribute an RMD.
Source: Kravitzinc.com
Highly Compensated Employee Identification
Abstract: In retirement plan administration, it is sometimes necessary to use prior year data to make certain determinations. Using prior year data sometimes produces results that clients find counterintuitive. One example is the identification of Highly Compensated Employees.
Source: Belfint.com
Part-Time Employees in 401k Plans
Abstract: More and more businesses are hiring part-time, seasonal or temporary employees. Employers believe the advantages to using this alternative workforce include lower wages and significant savings in terms of not providing employee benefits to these individuals. Unfortunately, many 401k plan sponsors are under the misconception that all part-time employees can automatically be excluded from participation. This article describes the minimum service requirements for 401k plans and the effects of improperly excluding part-time employees.
Source: Pinnacle-Plan.com
Marketplace News
Arnerich Massena Adds Institutional Services Consultant
Ascensus Enhances Online Fund Management Capabilities
Money Intel Launches Downmarket 401k Platform
Hancock Introduces New Plan Review Tool
Financial Engines Completes Acquisition of The Mutual Fund Store
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