How Low Can 401k Advisory Fees Go?
|
In This Issue
Items of Special Interest to Service Providers How Low Can 401k Advisory Fees Go? Abstract: Lowering plan costs got many experienced advisers in the door and became one of their major value propositions. But that strategy has affected not just recordkeeping and money-management fees; it has also affected advisory fees, and it shows no real signs of letting up. There are market forces at play that could continue to depress advisers' fees even further. Source: Investmentnews.com (registration may be required) General Items What Makes the 401k So Popular? Abstract: The 401k plan has been one of the most popular forms of qualified retirement plans because it offers a robust set of customizable features and elements to benefit the company sponsoring the plan and its employees. Flexibility is significant because it translates to customization. Source: Tristarpension.com Tax Credit for Small Employer Start-Up Retirement Plans Abstract: Although this particular tax credit has been available for over a decade, it is still surprising to see the general lack of awareness that most plan sponsors have regarding this tax saving opportunity. This article is intended to familiarize readers with this tax credit so that they can attempt to evaluate its application to their tax situation. Source: Legacyrsllc.com Fiduciary and Plan Governance Material Retirement Plan Best Practices: Plan Monitoring Abstract: Monitoring your investment menu managers, your plan providers, and plan fees is an important part of your overall fiduciary responsibility. This white paper looks at best practices and the standards should you be following in your monitoring practices. Throughout the paper, you'll find checklists that may be helpful in building and maintaining your plan monitoring processes. Source: Arnerichmassena.com »» Click here for more Fiduciary and Plan Governance Material Insight: Studies, Research, and White Papers Top 30 401k Plans of 2016 Report Abstract: BrightScope, a Strategic Insight company, is pleased to announce the Top 30 401k Plans of 2016 report. BrightScope's Top 30 list is comprised of large 401k plans with high overall quality, as measured by the BrightScope Rating. Source: Brightscope.com Retirement Offerings in the Fortune 500: A Retrospective Abstract: The last two decades have witnessed a sweeping shift in retirement offerings from large employers. This study takes a historical look at the primary retirement plans offered by current Fortune 500 companies between 1998 and 2017, thus showing how their retirement programs have evolved over the last 20 years. Source: Towerswatson.com More Employers Are Upgrading Their DC Plans Abstract: Employers are upgrading their defined contribution plans according to a Willis Towers Watson. WTW found that more employers are adding automatic enrollment and Roth plan features to their 401k plans, increasing their contributions, reducing the number of investment choices and being more transparent about recordkeeping fees. Source: Hrdive.com Shake Up Financial Education, Paper Says Abstract: Poor savings rates, high debt levels, and the frequent incidence of living paycheck-to-paycheck are among the ingredients in the recipe for financial stress. Financial education can be an antidote, but not in the traditional ways it is provided suggests a recent study. Source: Asppa.org Mechanisms Behind Retirement Saving Behavior Abstract: This TIAA Institute study identified the behaviors that influence employees' decisions regarding their retirement plans. In opt-in plans, efforts to get employees to increase their savings above the default rate are likely to be fruitful if they focus on improving financial literacy and understanding of exponential growth. While in automatic enrollment environments, efforts targeted at procrastination tendencies are likely to be particularly effective. Source: Tiaainstitute.org »» Click here for More Studies, Research, and White Papers Plan Automation Improving Participant Outcomes Through Re-Enrollment Abstract: A defined contribution plan "re-enrollment" has become a retirement plan industry best practice. This 8-page white paper addresses the most common preconceived notions around re-enrollment's and provides fiduciaries the context, data, and legal support to evolve toward an informed embrace of a re-enrollment's value. Source: Qualifiedplanadvisors.com »» Click here for more on Automatic 401k Plan Features Legislative and Washington DC Congressman Neal's Automatic Retirement Plan Proposal Abstract: This article we discuss Congressman Neal's Automatic Retirement Plan Act of 2017, which would (with some very limited exceptions) require every US employer to maintain an "automatic contribution" retirement plan. The bill would also create a framework for "open" multiple employer plans. Source: Octoberthree.com Bill Would Help Establish Database for Orphaned 401k Accounts Abstract: Two senators are trying to help workers locate retirement savings they may have forgotten when they switched jobs. On Thursday, Sens. Elizabeth Warren and Steve Daines introduced the Retirement Savings Lost and Found Act, which would establish a national database of orphaned retirement accounts. Source: Investmentnews.com (registration may be required) »» Click here for more on Legislative Actions Fiduciary Rule SEC Chairman Outlines Goals for a New Fiduciary Standard Abstract: An SEC fiduciary rule should provide investors clarity about the role of their adviser, enhanced protection and offer regulatory coordination, Chairman Jay Clayton said Friday. The SEC and DOL have promised to work together on investment-advice standards. Source: Pionline.com »» Click here for more on the DOL's Fiduciary Rule Compliance and Regulatory Compliance Checklist 2018 for Plans That Are Subject to ERISA Abstract: This 43-page Compliance Checklist incorporates defined benefit, defined contribution, and ERISA 403b requirements and provides information on the materials that will need to be file, filing due dates, and agencies to which the filings should be made. Source: Prudential.com Missing Participants and Required Minimum Distributions Cause Headaches for Plan Fiduciaries Abstract: Unfortunately for employers, the DOL has been aggressively challenging the adequacy of employer efforts to locate and contact missing participants. Numerous plan sponsors have received letters from the DOL during missing participant audits that threaten sanctions against plan fiduciaries for alleged violations of ERISA, despite a lack of definitive guidance on exactly how employers should follow up on a variety of challenges. Source: Winston.com 401k Hardship Withdrawals - Made Easier by the 2018 Budget Act Abstract: Effective for hardship distributions that occur after January 1, 2019, employees will no longer be subject to the 6-month suspension period for contributions. Also, amounts eligible for withdrawal will be expanded to include earnings, as well as other employer contributions previously made to the plan. Lastly, the legislation would remove the requirement to take a loan before qualifying for a hardship withdrawal. Source: Schneiderdowns.com »» Click here for more Compliance and Regulatory Material Marketplace News Popular 403b Resource Launching Directory of Fiduciary Advisers »» 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 © 2018 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
|
