Additional Breathing Room for Repayment of Retirement Plan Loans
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Newsletter Sponsor Are All $5,000,000 401(k) Plans Created Equal? The 401k Averages Book has released a new Special Report taking a closer look at two 401(k) Fee Benchmarks. The report compares two plans with the same assets with different average account balances. Click here for your copy of the report. In This Issue
Compliance and Regulatory Additional Breathing Room for Repayment of Retirement Plan Loans Abstract: One option a terminated employee had with an outstanding plan loan was to "rollover" an offset by contributing to the amount of the unpaid loan balance to an IRA with 60 days of leaving. Effective for tax years beginning in 2018, the Tax Cuts and Jobs Act extends the rollover deadline from 60 days to the due date of the employee's tax return including extensions. Source: Retirementplanblog.com 2018 Compliance Calendar for Defined Contribution Plans Abstract: This is a month-by-month chart of compliance items that a DC plan sponsor should address throughout the year in order to retain the qualified status. Source: Watkinsross.com Why the New IRS VCP Fees Are Bad for Small Business, TPAs, and Retirement Plans Abstract: At a time when employers need more encouragement to help employees save for retirement, the trend at the IRS does the exact opposite. The increased risk that the employer takes on due to a lack of communication with the IRS, coupled with the increased expense of correcting any failure, is a move in the wrong direction. Source: Ferenczylaw.com »» Click here for more Compliance and Regulatory Material General Items How to Boost Plan Participation Rates Abstract: A variety of worker concerns, as well as other factors, could be affecting the participation and retirement readiness of the employees of your organization. Here are a few ways you can address common concerns and increase plan participation rates. Source: Planpilot.com Health Savings Account vs. 401k, Which Is Better for Savers? Abstract: Maxing out contributions to a health savings account before contributing the maximum amount to a 401k plan could be a better strategy for some retirement savers. That's because the benefit of tax-free withdrawals could outweigh the benefit of an employer's match. Source: Benefitnews.com Fiduciary and Plan Governance Material Developing Investment Policy and Structure Abstract: The challenge for plan sponsors comes when trying to satisfy a wide range of participant investment styles, while also maintaining simplicity to help ease participants' decision-making and minimize overall plan and participant risk. This article reviews four key considerations for your investment policy and selection. Source: Planpilot.com Abstract: An employer's selection of a third-party administrative services provider for its retirement plan is a fiduciary exercise. This means the process by which the employer reaches its decision must be prudently undertaken. It is therefore imperative that an employer pay close attention to the details of, and thoroughly document, the process it follows in selecting or changing its TPA. Source: Stevenslee.com Fiduciary Fundamentals for 2018 Abstract: In both teaching and spirit, Trust Law instructs ERISA. Trusts are characterized by the relationship between the trustee and the beneficiary of the assets dominated by the former's fiduciary duties to the latter. The relationship between the trustee and beneficiary is measured and recognized not by the result of the interaction but the sincerity of the behaviors that yield the result. Source: 401khelpcenter.com »» Click here for more Fiduciary and Plan Governance Material Insight: Studies, Research, and White Papers Technology, Language and Educational Capabilities: Key Levers in the DC Market Abstract: While DC plan providers are vetted stringently on their respective abilities to provide personalized, proactive client service and customized plan design, there are other factors that are essential to demonstrate in the recordkeeping suite. These include: technology, language, and educational capabilities. Source: Marketstrategies.com »» Click here for More Studies, Research, and White Papers Court and Legal Eaton Execs Win Battle Over Retirement Plan Stock Abstract: Four Eaton Corp. executives scored an appeals court victory in a case accusing them of wrongly allowing workers to continue investing retirement savings in company stock. The executives didn't have an option that was clearly better than letting workers continue to invest in Eaton stock during a period when its price fell more than 15 percent, the U.S. Court of Appeals for the Sixth Circuit ruled Jan. 8. Source: Bna.com (registration may be required) Vanderbilt Can't Shake Suit Over Retirement Plan Fees Abstract: Vanderbilt University is the latest school to lose an early round in litigation challenging the fees and investment options in its retirement plan. A federal judge on Jan. 5 largely refused to dismiss a proposed class action accusing the school of running a retirement plan with excessive administrative fees, too many service providers, and high-fee investment options. Source: Bna.com (registration may be required) HP Scores 9th Cir. Win in Challenge to Stock in 401k Plan Abstract: Hewlett-Packard Co. is the latest major company to defeat a lawsuit by workers who say they lost out on retirement savings by investing in company stock. The workers failed to show that HP executives took steps to conceal a corporate fraud related to the company's controversial acquisition of British software maker Autonomy Corp., the U.S. Court of Appeals for the Ninth Circuit said Jan. 9. Source: Bna.com (registration may be required) DOL Sues Retirement Plan Fiduciaries for Misusing Plan Assets Abstract: A federal district court judge entered a judgment requiring Michael Lewis, former president of Acme Orthotics and Prosthetic Laboratories Inc., to restore $128,535.75 in losses owed to the company's Profit Sharing 401k Plan and Trust. Source: Planadviser.com »» Click here for more Court and Other Legal Issues Legislative and Washington DC The Impact of Tax Reform on Qualified Plans and Fringe Benefits Abstract: The Act makes changes to the rules governing qualified plans (such as 401k plans and pension plans) and fringe benefit plans. These changes generally apply to plan years beginning after December 31, 2017. This is a review of those changes. Source: Drinkerbiddle.com »» Click here for more on Legislative Actions Cybersecurity 401k Plan Data, Can It Be Hacked? Abstract: Failure to deal with cybersecurity issues could be a fiduciary breach under these rules and fiduciaries could have personal liability for the resulting losses, for example, if hackers are able to steal plan assets or fraudulently obtain distributions online by pretending to be participants. Participants whose personal accounts are hacked might also have claims against fiduciaries who failed to protect their data. Source: 401ktv.com Advisers Are Apparently Ignoring Cybersecurity Threats Abstract: Only 27% of RIAs surveyed by TD Ameritrade suggest that cybersecurity issues, even when very broadly defined, are likely to impact client portfolios during 2018; experts suggest this is just wishful thinking. Source: Planadviser.com »» Click here for more on Cybersecurity Issues Marketplace News Three Bell Capital Purchases BPM Advisors SPARK Institute Releases Updated RFP Guide PSCA Seeks Entries for Signature and Lifetime Achievement Awards Segal Acquires Touchstone Consulting Multnomah Group Expands Consulting Team NAPA Unveils the Top Retirement Plan Advisors Under 40 Firm Launches Suspicious Activity Alerts Feature to Protect 401ks »» Click here for More Marketplace News
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