Evaluating Roth and Pretax Retirement Savings Options
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General Items Evaluating Roth and Pretax Retirement Savings Options Abstract: There are two ways to get Roth account exposure: a Roth IRA or through a retirement plan that has a designated Roth account. While Roth IRAs have income eligibility limits, those do not apply to contributions within a 401k plan. Pretax contributions are generally preferable for people who expect their income tax rate to decrease in retirement. Having Roth accounts may make sense for tax diversification, flexibility and as a hedge against higher tax rates. Source: Troweprice.com Why Defined Contribution Plan Innovation Is So Slow Abstract: Major change comes with significant risk in the view of most senior managers while providing minimal benefit, not a recipe for success. That, in a nutshell, explains why innovation is so slow for 401k and 403b plans. Source: Investmentnews.com (registration may be required) Blizzard of Debt Melts Into Retirement Abstract: Debt is accumulating like snow in a blizzard, we have long been told. And that load may not melt away quickly, it may linger, extending its chill seasons ahead to retirement. Looks at its longer-term effects. Source: Asppa.org Fiduciary and Plan Governance Material 401k Plan Sponsors Are Increasingly Hiring Fiduciary Advisers Abstract: Employers sponsoring a 401k plan, especially small business owners, are increasingly hiring investment advisers who serve as fiduciaries to their retirement plan, new research suggests. About 70% of all 401k plans used an independent investment adviser -- separate from the plan's recordkeeper -- to assist with fiduciary responsibility in 2016, according to a new study from the Plan Sponsor Council of America. Source: Investmentnews.com (registration may be required) Are Your Plan Files Complete? What an Auditor Will Want to See Abstract: All plan fiduciaries should keep an "audit file" with the documents that determine how the plan is run and required disclosures. This file starts with the plan and all amendments, but should contain lots of other things. Source: Cohenbuckmann.com »» Click here for more Fiduciary and Plan Governance Material Insight: Studies, Research, and White Papers Retirement Planning More a Focus for Those Participating in Retirement Plans Abstract: An analysis from Pew Charitable Trusts of data from a nationally representative internet survey of private-sector workers shows a correlation between access to and participation in workplace-based retirement savings programs and more planning and saving. Source: Planadviser.com Employees Cash Out 401ks in Record Numbers Abstract: The Bureau of Labor Statistics reports that today's mobile workforce is changing jobs nearly a dozen times. For 35- to 44-year-olds, a little over a third take jobs that last less than a year. It doesn't allow for a lot of time to sock away money in a 401k account and as a result, many workers are cashing out what little they have. Source: Workforce.com »» Click here for More Studies, Research, and White Papers Items of Special Interest to Service Providers How to Sell and Deliver a Financial Wellness Program Abstract: Financial wellness. Financial literacy. Retirement readiness. These loosely-defined buzzwords have been cropping up across the world wide web in recent years. Whatever the term, more holistic services that were once reserved for private wealth clients have morphed, gained scalability and flowed downstream to participants in retirement plans. In a profession where differentiation is crucial, leveraging a financial wellness program can help you stand out. Source: Fi360.com Fee and Industry Shifts Mean Retirement Plan Providers Can Play Hardball Abstract: A look back at how Fidelity will charge new plan sponsor clients on its platform who choose Vanguard products makes visible the hard-nosed competition that defines the retirement plan recordkeeping and brokerage industries. Source: Planadviser.com Self-Reporting to SEC of 12b-1 Conflicts of Interest Not Without Risk Abstract: Offering some preliminary commentary on the SEC's newly announced adviser 12b-1 fee conflict of interest "amnesty" program, as it's being referred to in the trade media, Wagner Law Group attorneys warn of the inherent risks in the self-reporting of violations. Source: Planadviser.com 403(b) Plans A (403b) Plan to Resolve Conflicts Abstract: An employer with a 403b plan must have a written plan that identifies the plan's investment arrangements in order to satisfy the IRS regulatory requirements. But what happens if the terms of the 403b plan document conflict with the provisions of an investment arrangement identified in the 403b plan? Source: Ntsa-net.org »» Click here for More 403(b) Material Compliance and Regulatory An Annual Retirement Plan Check-Up May be Just What the Doctor Ordered Abstract: If you work with your employer's tax-qualified retirement plans, such as a 401k or pension plan, now is the time to consider implementing operational checkups for those plans to ensure that the plan is being administered in compliance with the plan's terms as well as applicable law. The article reviews what should be included in a retirement plan checkup. Source: Laboremploymentperspectives.com 401k Loan Policy Best Practices Abstract: Plans sponsors who want to provide the flexibility of 401k loans while helping their employees avoid savings setbacks can start with good plan design and education. A good loan program encourages employees to think carefully before borrowing against their retirement savings and may even provide disincentives to such borrowing. Here are seven tips for a successful loan program. Source: Forusall.com Plan Compliance When the Watchdogs Are in the Dog House Abstract: The IRS has decreased the number of returns audited to its lowest level since 2004, reduced staffing by 30 percent, and cut the number of criminal investigations initiated. This article focuses on the changes in the relationship of the IRS to the retirement plan administration community over this period of time. Source: Ferenczylaw.com DOL Settles With "Fiduciary Firm" Over $16 Million 401k Fraud Abstract: The DOL announced that it has entered into a settlement agreement with U.S. Fiduciary Services and three of its subsidiaries that provide for payment of more than $7 million to 42 retirement plans that suffered losses because of investments in fictitious loans made by Florida-based First Farmers Financial. Source: 401kspecialistmag.com New Tax Law Causes Uncertainty for Some Hardship Distributions Abstract: The Tax Cuts and Jobs Act indirectly changed one of the safe harbor bases for hardship distributions. For tax years 2018-2025, the new law limits casualty loss deductions to those occurring in a federally declared disaster area. Plans that use hardship distribution safe harbors that reference this deduction should consider how they will address requests for losses that occur outside of a federally declared disaster area. Source: Conduent.com »» Click here for more Compliance and Regulatory Material Marketplace News PSCA's 60th Annual Survey of Profit Sharing and 401k Plans Available EPIC Adds New Managed Account Solution to Platform »» Click here for More Marketplace News
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