401k Myths You Can't Afford to Believe
|
Newsletter Sponsor Free Infographic on Small Plan 401k Fees From the 401k Averages Book Newly released and updated Infographic on the Breakdown of Small Plan 401k Fees. Produced using the 401k Averages Book's average cost data, this informative and visually appealing infographic illustrates average costs and how they breakdown for a 100-participant plan. The 401k Averages Book is the only resource book available for non-biased, comparative 401k fee information. Click here to receive your free Infographic. In This Issue
General Items 401k Myths You Can't Afford to Believe Abstract: Most of the positive PR about 401k plans is warranted. But don't believe everything you hear. Falsehoods -- and even following fact-checked 401k rules of thumb in every situation -- can steer savers off course. Here are five 401k rules worth further scrutiny. Source: Usatoday.com Infographic: Five Ways to Motivate Millennials Through Employee Communication Abstract: According to Gallup, Millennials make up close to 40% of the United States workforce. However, less than one-third of them are engaged at work. Encouraging Millennials to take action concerning their employee benefits can be a difficult task. This infographic highlights five of tactics. Source: Retirementtownhall.com Fiduciary and Plan Governance Material The Tiered Investment Menu: A Behavior-Based Approach to Menu Design Abstract: The marketplace is trending towards a redesign of the investment menu. This is being done through investment menu segmentation into behavior-based levels or tiers. Many plan sponsors and financial educators are finding this new tiered menu approach easier to communicate and simpler for employees to understand how to select investment options that may be most suitable for them. Source: Fiallc.com Fiduciary Sudoku -- Comprehending ERISA 3(16), 3(21) & 3(38) Abstract: Vendors who service retirement plans will use the terms 3(16), 3(21) and 3(38) to describe their service offering. The terms have often been taken for granted, and sometimes abused by service providers looking for a marketing edge. This article offers some clarification and understanding regarding the terms. Source: Alliantwealth.com »» Click here for more Fiduciary and Plan Governance Material Insight: Studies, Research, and White Papers Pre-retirees Who Work With an Advisor Are Twice as Likely to Feel Well Prepared for Retirement Abstract: A new LIMRA Secure Retirement Institute study finds 43 percent of U.S. pre-retirees (ages 50-75) who work with an advisor feel well prepared for retirement, compared with just 21 percent of pre-retirees who do not work with an advisor. Source: Limra.com 2017 PLANADVISER Top 100 Retirement Plan Advisers Abstract: Chart highlights the quantitative standouts according to the dollar value of qualified plan AUA as well as the number of plans under advisement. The qualification standards continue to rise, as specialist advisers and consultants build their practices. Source: Planadviser.com »» Click here for More Studies, Research, and White Papers Court and Other Legal Issues District Court Dismisses Allegations That Stable Value Fund is Too Conservative Abstract: A district court in Rhode Island dismissed claims by participants in the CVS Employee Stock Ownership Plan that plan fiduciaries imprudently invested plan assets in the plan's stable value fund. Source: Erisapracticecenter.com Starwood Hotels Can't Escape ERISA Lawsuit Over 401k Fees Abstract: Starwood Hotels must defend a proposed class action accusing it of violating federal benefits law by allegedly mismanaging the company's $1.2 billion 401k plan. Source: Bna.com (registration may be required) »» Click here for more Court and Other Legal Issues Legislative and Washington DC Bill Would Address Loan Repayments and Savings After a Hardship Withdrawal Abstract: The Shrinking Emergency Account Losses (SEAL) Act would allow employees to continue to contribute to their DC plans during the six months following a hardship withdrawal, among other things. Source: Planadviser.com CHOICE Act Targets Fiduciary Rule, Dodd-Frank Rollback Abstract: Passage of the CHOICE Act by the House Financial Services Committee could signal a further blow to conflict of interest regulations adopted by the Obama administration. Source: Planadviser.com »» Click here for more on Legislative Actions State-Based Retirement Programs Senate Repeals State-Sponsored Retirement Plans Abstract: The Senate repealed an Obama-era regulation that allowed states to auto-enroll private sector workers in government-run 401ks and IRAs for those who lack retirement plan access. Source: 401kspecialistmag.com DOL's Fiduciary Rule DOL Bucking Trump on Fiduciary Rule? Former Officials Say No Abstract: Critics of the Department of Labor's fiduciary rule claim that by letting some portions of the rule take effect in June, the department is standing in the way of President Donald Trump's directive to review the rule. But former DOL officials interviewed by Bloomberg BNA say these accusations are greatly exaggerated and ignore how the agency and rulemaking works. Source: Bna.com (registration may be required) »» Click here for more on the DOL's Fiduciary Rule Compliance and Regulatory Administrative Check-Up on Participant Plan Loans Abstract: The IRS just issued a memo to its auditors approving two different methods for calculating the statutory limitation on available loan amounts when a participant takes a new loan within 12 months of having paid off another loan or is obtaining a new loan with another loan outstanding. In addition to verifying your recordkeeper is properly utilizing one of the two approved methods, it is also a great time for an overall plan loan check-up. Source: Poynerspruill.com The DOL's Assessment on the Quality of Financial Statement Audits: The Aftermath Abstract: It has been almost two years since the DOL released the results of its study of the quality of work performed by independent qualified public accountants (IQPAs). This article succinctly summarizes the quantifiable aspects of their study. Source: Belfint.com Protecting Your Qualified Retirement Plan Now That the IRS Determination Program is (Mostly) Closed Abstract: A lot has been written over the last few months about what to do now that the IRS has closed its determination letter program for ongoing individually designed tax-qualified retirement plans. Most of the focus seems to have been on fear: as time passes, how will we know whether a retirement or 401k plan is still qualified? Source: Erisapracticecenter.com Use of Forfeitures in Safe Harbor 401k and 403(b) Plans Abstract: The IRS issued proposed regulations stating Qualified Non-Elective Contributions (QNECs) and Qualified Matching Contributions (QMACs) will be considered non-forfeitable at the time allocated to participant accounts. Source: Ntsa-net.org »» Click here for more Compliance and Regulatory Material Marketplace News InTrust Fiduciary Group Merges With CAPTRUST Plan Sponsor Council of America Announces Leadership Changes PSCA 2017 Signature Award Winners Announced Wagner Law Group Receives IRS Approval on Volume Submitter 403(b) Plan »» Click here for More Marketplace News
This eNewsletter is a digest of information published by a variety of web-based sources on 401k and related issues and is published as a service to our users. 401khelpcenter.com, LLC is not the author of the material unless specifically noted. Articles are copyrighted to their publishers. If you believe that your work has been copied in a way that constitutes copyright infringement, please contact the source site immediately. Hyperlinks in this document are provided as a convenience and we disclaim any responsibility for information, services or products found on websites linked hereto. All links were tested before this eNewsletter was e-mailed to you to ensure that they are still functional, but publishers do move or delete articles. Therefore, we can't guarantee that the links provided will remain operational. 401khelpcenter.com does not endorse, approve, certify, or control this material and does not guarantee or assume responsibility for the accuracy, completeness, efficacy, or timeliness of the material. Use of any information obtained from this material is voluntary, and reliance on it should only be undertaken after an independent review of its accuracy, completeness, efficacy, and timeliness. Reference to any specific commercial product, process, or service by trade name, trademark, service mark, manufacturer, or otherwise does not constitute or imply endorsement, recommendation, or favoring by 401khelpcenter.com. Opinions expressed are those of the author of the article and do not necessarily reflect the positions of 401khelpcenter.com. THIS NEWSLETTER IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE INVESTMENT, TAX, ACCOUNTING, OR LEGAL ADVICE. Copyright © 2017 by 401khelpcenter.com, LLC. All rights reserved. No reproductions without prior authorization, but you are free to email this copy (in its entirety) along to colleagues or clients. This newsletter may not be posted to any website. 401khelpcenter.com, LLC
|
