Frequently Asked Questions About 401k Plans: Updated
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Insight: Studies, Research, and White Papers Frequently Asked Questions About 401k Plans: Updated Abstract: The Investment Company Institute has updated their FAQ on 401k retirement plans. Some of the questions covered include: What is a 401k plan and how does it work? How have 401k plans grown since their introduction? What are the benefits of investing in a 401k plan? Is there a limit to how much an employee and employer can contribute to a 401k plan? Source: Ici.org 2017 Defined Contribution Plan Sponsor Survey Findings Abstract: This 28-page report confirms that the evolution of DC plans continues. Plan sponsors and their organizations are transitioning from a traditional view of their DC plans -- for example, to attract and retain employees -- to a sharper focus on achieving the ultimate retirement outcome: helping as many employees as possible reach a financially secure retirement. This focus is evident in plan sponsors' stated philosophies, objectives and, most important, actions. Source: Jpmorgan.com Who Participates in Retirement Plans Abstract: Increasing the share of workers who participate in retirement plans has been a primary focus of retirement policy. As the retirement industry and policymakers try to increase participation, it is important to understand which workers currently participate in employer-sponsored retirement plans and why certain employers offer, and certain employees desire, compensation in the form of retirement benefits. Source: Ici.org New Retirement Readiness Resources Embody Industry Trends Abstract: The proliferation and evolution of retirement readiness resources continue to be of the most prevalent trends within the digital retirement space. As more and more recordkeepers introduce new and upgrade current resources, the selections of retirement readiness tools and calculators available on participants have become increasingly user-friendly and comprehensive. Source: Corporateinsight.com Black Millennials Lack Retirement Plan Abstract: The retirement forecast for Black millennials could prove catastrophic if better financial planning, saving and curbing unnecessary spending are not taken seriously. Source: Afro.com »» Click here for More Studies, Research, and White Papers 403b Plans New 401k Pre-Approved Document Rules Suggests Path to Address 403b Document Challenges Abstract: Buried in that Rev Proc 2017-41 is something we have been looking for in the 403b space, which actually would help alleviate some of the concerns document drafters have with these long-standing plans. Source: Businessofbenefits.com Why Do I Need to Restate My 403b Plan Document? Abstract: All organizations sponsoring 403b plans must now "restate" their plan documents onto an IRS approved document by March 31, 2020. Restatement on an IRS pre-approved plan gives the sponsoring organization reliance that the provisions in the pre-approved plan are compliant with IRS rules and regulations and that the plan assets are protected from taxation. Source: Qbillc.com »» Click here for More 403b Material Fiduciary and Plan Governance Material Still Think Your Retirement Plan Is Only About the Investment Menu? Abstract: Reviewing investment menus and making changes to menus tends to be the primary focus of "fiduciary review meetings." While this is of obvious importance, the investment menu should be a "tab" during the review and should not be the primary topic of every meeting. Source: Schneiderdowns.com Missing Participants -- Part One Abstract: There are widespread reports of Department of Labor audits focusing on plan procedures with respect to "missing participants." The DOL is treating the failure to adopt and follow adequate missing participant search procedures as a fiduciary breach and a possible prohibited transaction. This article reviews current rules and practice with respect to missing participants. Source: Octoberthree.com »» Click here for more Fiduciary and Plan Governance Material Items of Special Interest to Service Providers Investment Manager and Recordkeeper Changes Driven by Fees Abstract: Plan sponsors' desire to reduce plan costs is substantially impacting their approach to investment menu design and their relationships with defined contribution plan investment managers, according to findings from "Retirement Planscape," an annual Cogent Reports study by Market Strategies International. Source: Plansponsor.com To Reach DC Plan Sponsors, Tap the Wall Street Journal Abstract: Plan providers courting new business often turn to trade publications and websites to tout their recordkeeping capabilities among a targeted audience. Yet when we asked plan sponsors which print publications they read over the past six months, specifically for 401k best practices or 401k service providers, nearly half (49%) cite The Wall Street Journal. Source: Marketstrategies.com Court and Other Legal Issues The Supreme Court Indirectly Stiffens a Fiduciary Breach Time Limit Abstract: The Supreme Court appears to have barred equitable tolling under ERISA Section 413's six-year statute of repose for fiduciary breach claims, subject only to well-pled allegations and proof of fraud or concealment. Source: Erisa-employeebenefitslitigationblog.com Voya's Win in 401k Fee Suit Bodes Well for Other Recordkeepers Abstract: The dismissal of a lawsuit against Voya Financial for its relationship with 401k robo-adviser Financial Engines could be a harbinger of success for other major retirement-plan recordkeepers locked in similar legal battles. Source: Investmentnews.com (registration may be required) »» Click here for more Court and Other Legal Issues Compliance and Regulatory Top Five Tips for 401k Loan Program Design Abstract: Here are five plan design ideas for plan sponsors who want to allow employees to borrow against 401k accounts and, at the same time, ensure the loan is repaid and add some retirement security protections. Source: Ifebp.org IRS Revamps Pre-Approved Qualified Plan Program Abstract: In new IRS Rev. Proc. 2017-41, the IRS revamps its pre-approved plan program. Many of these changes appear to be designed to make pre-approved plans more attractive and usable in place of individually designed plans. This 4-page article highlights keys aspects of the new guidance. Source: Groom.com 401k Hardship Distributions: Do They Have to Be So Hard? Abstract: Although many providers have used online, participant self-certification to process hardships, serious questions remain whether this process is adequate and the employer, not the provider, remains responsible for any improper hardships. Recent changes to IRS audit guidelines for its examiners indicate the IRS may be more flexible than in the past if certain notice and documentation requirements are met. Source: Wnj.com »» Click here for more Compliance and Regulatory Material Marketplace News Ascensus Announces Acquisition of Benefits of Missouri RCH's Auto Portability System Goes Live DWC ERISA Consultants Rebrands Lockton Retirement Expands Western US Staff »» Click here for More Marketplace News
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