Newsletter for March 26, 2018
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In This Issue
Fiduciary and Plan Governance Material
Bitcoin: Should Plan Sponsors Consider It for Retirement Plans?
Abstract: Bitcoin is a digital currency or cryptocurrency not tied to a sovereign or bank. Used primarily as a tool for transactions and trading, it is most popular with people on the leading edge of technology, and a number of large investors, rather than the everyday consumer. Is bitcoin an appropriate investment vehicle for retirement plan sponsors?
Source: Milliman.com
Evaluating Weighted Average Plan Fees
Abstract: A new feature of Callan's DC IndexTM, the DC Fee Analysis chart examines the effects of plan size, participant allocations, and vehicle utilization on investment management fees. The data can help plan sponsors compare their fees to peers and can provide guidance on how to restructure their plan options to reduce fee levels.
Source: Callan.com
»» Click here for more Fiduciary and Plan Governance Material
General Items
401k Catch-Up Contributions and How They Work
Abstract: For employees who have attained their 49th birthday by December 31 of the previous year, an additional "catch-up" contribution for the calendar year may be made. The catch-up limit is subject to annual Cost of Living adjustments. For 2018, the calendar year limit is $6,000. The catch-up limit applies not only to the Section 402(g) limit, but also to any other limit imposed by the Plan or the IRC.
Source: Qbillc.com
Insight: Studies, Research, and White Papers
Roth 401k Contributions: Gaining Popularity, Looking to Increase Tax Diversification
Abstract: As a retirement planning tool, Roth 401k contributions can offer 401k plan participants a more nuanced approach to retirement saving than a traditional 401k plan can on its own. The different tax status of Roth 401k withdrawals gives plan participants more flexibility and opportunities to broaden their retirement planning strategies and turbocharge their retirement plan outcomes.
Source: Willis.com
Debt Levels for Households Nearing Retirement Decreasing, but Still High Compared to Past Generations
Abstract: Evidence paints a mixed picture of trends relating to debt levels of families with a "near elderly" head, those ages 55 to 64. By many measures, the debt burden has improved for this demographic group since the Great Recession. At the same time, in many ways, this family cohort shows higher levels of indebtedness than families with older heads.
Source: Ebri.org
Study Finds Fewer GenXers Have Retirement Savings
Abstract: With only ten years until the eldest of the cohort turn 65, the majority GenXers believe their savings will cover their basic expenses and allow for leisure and travel in retirement. However, this confidence is misguided as forty percent of GenXers have no retirement savings, an increase of 5 percent from the previous study.
Source: Myirionline.org
DB Plan Performance Still Ahead, but DC Plans Catching Up
Abstract: While many would argue that comparing the returns of DB and DC plans is not an apples-to-apples analysis, a new report examines the plan performance gains that DC plans have made against DB plans.
Source: Asppa.org
»» Click here for More Studies, Research, and White Papers
403b Plans
The IRS Has a 403b MEP Problem
Abstract: There has been increasing interest in the market to put together Multiple Employer Plans for 403b plans, and with good reasons. But a 403b MEP is really complicated when you get down to it because -- like anything 403b it seems -- the devil that exists in the details.
Source: Businessofbenefits.com
»» Click here for More 403(b) Material
Court and Legal
Morningstar and Prudential Win RICO Suit Dismissal
Abstract: The U.S. District Court for the Northern District of Illinois, Eastern Division, has dismissed a lawsuit filed against Morningstar and Prudential. The unsuccessful challenge was viewed as somewhat unique amid the glut of retirement industry litigation because it cited the Racketeer Influenced and Corrupt Organizations Law of 1970, known as RICO.
Source: Planadviser.com
»» Click here for more Court and Other Legal Issues
Cybersecurity Issues
Defend Your Retirement Plan From Cyberattacks
Abstract: Retirement plans are notorious targets for these attacks because they involve a high volume of sensitive information that is invaluable to criminals with malicious intent. Plan participant and financial information is generally shared with many different parties, making it more vulnerable to such threats. This article discusses current risks as well as some useful tips for protecting plan participants' information.
Source: Planpilot.com
»» Click here for more on Cybersecurity Issues
State-Based Retirement Programs
Washington State Launches Retirement Marketplace
Abstract: The Washington State Department of Commerce announced the launch of the state's Retirement Marketplace, a virtual marketplace in which financial services firms will offer low-cost retirement savings plans to businesses with fewer than 100 employees, including sole proprietors and the self-employed.
Source: Ntsa-net.org
Fiduciary Rule
Fifth Circuit Vacates DOL Fiduciary Rule
Abstract: Although the fate of Fiduciary Rule is not entirely certain, the Fifth Circuit's decision provides the Trump Administration a clear pathway to undoing the Fiduciary Rule and reinstating the prior definition of "invest. advice." This article discusses the implications of the decision and next steps.
Source: Groom.com
DOL Puts Fiduciary Rule Enforcement on Hold
Abstract: The industry may be wondering what's next in the wake of last week's federal court decision vacating the fiduciary rule, but, for now anyway, the DOL says it is taking a pause.
Source: Asppa.org
Supreme Court May Have to Decide Fate of DOL Fiduciary Rule
Abstract: The future of the DOL's fiduciary rule could land on the docket of the U.S. Supreme Court now that a federal appeals court has vacated the rule, including the expanded definition of fiduciary and associated exemptions. Another possibility would be a stay of the case for a Supreme Court appeal.
Source: Blr.com
»» Click here for more on the DOL's Fiduciary Rule
Compliance and Regulatory
Which 401k Plan Fees Can Be Paid Out of Plan Assets?
Abstract: Are we allowed to pay 401k plan-related expenses out of the plan assets? This is another one of those questions with a short answer and a longer answer. The short answer is yes, it is perfectly allowable for some 401k plan expenses to be paid out of plan assets, but the flip side of that is that there are some expenses that are not allowed to be paid from the plan.
Source: Dwc401k.com
The DOL and Other Agencies Focus on Plan Efforts to Locate Missing Participants
Abstract: The DOL has drastically increased audits of retirement plans with participants -- or beneficiaries -- who cannot be located in conjunction with the distribution of owed benefits. This short article summarizes a plan's duty to search for missing participants.
Source: Benefitsnotes.com
»» Click here for more Compliance and Regulatory Material
Marketplace News
Empower Retirement Partners With Quovo
Hueler Adds New Offering to the Income Solutions Platform
»» Click here for More Marketplace News
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