Strategies to Help HCEs Maximize 401k Contributions
|
Newsletter Sponsor The Fiduciary Rule and Fee Disclosure Keep 401k Fees a Hot Topic With the Department of Labor's Fiduciary Rule and 408(b)(2) requirements keeping the focus on fees, the new 401k Averages Book is a must have resource guide. Now you can choose from $10,000, $50,000, and $100,000 Average Account Balances to benchmark your clients and prospects. This easy to use to book provides benchmark fee information on investment, revenue sharing, recordkeeping and total plan costs. The 401k Averages Book is the most recognized source for comparative non-biased 401k information. Click here for more information. In This Issue
General Items Strategies to Help HCEs Maximize 401k Contributions Abstract: When employees aren't participating in the 401k or saving enough, non-discrimination testing can severely limit how much highly compensated employees can contribute. Limits imposed by non-discrimination testing are tough to overcome, but far from impossible. This article walks you through three highly effective strategies for overcoming these limits and acing your non-discrimination tests. Source: Forusall.com Assessing the Value of Financial Wellness for Your Employees Abstract: Given the low unemployment rate in the United States and competition for talented, committed workers, companies are offering financial wellness initiatives that include traditional benefits. To get the most out of financial wellness programs, business leaders should make sure their initiatives follow five criteria reviewed in this article. Source: Workforce.com The Benefits of Helping Employees Set a Retirement Budget Abstract: In order to understand how much to save, the starting point should be determining a retirement budget. Not only will such an exercise help employees better plan for the future, it may well give them a greater understanding of and appreciation for their employer-sponsored savings program and improve their financial wellness. Source: Benefitscanada.com Little-Known 401k Trick Can Open the Floodgates to Roth IRA Savings Abstract: The Roth IRA has very low contribution limits, while those in high-income groups may not qualify to contribute to the account. One strategy to make the most of the account's tax benefits is the backdoor option, which allows clients to make nondeductible contributions to a traditional IRA or contribute after-tax money to a 401k plan and then convert the funds into a Roth. Source: Fool.com Fiduciary and Plan Governance Material TCJA Participant Loan Changes Compel Review of Uncomfortable Loan Fiduciary Obligations Abstract: The Tax Cuts and Jobs Act's participant loan changes (which delay the account offset on loan defaults related to unemployment or plan termination) trigger something we would all rather not look at: the "uncomfortable" manner in which ERISA's fiduciary rules apply to loans and their administration. Source: Asppa.org Missing Retirement Plan Participants -- Employer Risk Abstract: Former employees will often have account balances or benefits due them under an employer's retirement plan and are still considered to be participants. Regulatory guidance makes it clear that distributing the retirement accounts and accrued benefits of former employees is the employer's responsibility. Employers who maintain retirement plans are required to have procedures in place for finding missing participants. Source: Stevenslee.com »» Click here for more Fiduciary and Plan Governance Material Insight: Studies, Research, and White Papers Retirement Income to Last a Lifetime Abstract: Many approaches may be needed to help future retirees secure lifetime incomes to provide them with the security and dignity of personally managing their retirement. Possible approaches consist of reevaluating federal retirement policies, emphasizing financial literacy and education, and refocusing retirement plan designs. Source: Actuary.org Boomer Expectations for Retirement - 2018 Study Abstract: Baby boomers -- even the youngest of whom are just a decade or so away from retirement age -- are in large measure unprepared for retirement, having failed both to plan adequately and save enough, according to this 26-page study released by the Insured Retirement Institute. Source: Myirionline.org Could "Tontines" Expand the Market for Longevity Insurance? Abstract: Tontine is a fancy word for betting on how long you'll live, in a good way. Here's the concept in a nutshell: many people pool their money in return for guaranteed regular payouts for life, similar to an annuity. This 6-page paper takes a close look at an idea that is tossed around among finance experts: modifying tontines to use them as a source of retirement income. Source: Bc.edu »» Click here for More Studies, Research, and White Papers Plan Automation Advances in Auto-Services: Reenrollment Abstract: Despite progress, the first wave of 401k plan auto-services had one inherent flaw: They were only implemented on newly hired, or newly eligible, employees. From a benefits perspective, plan sponsors were still viewing retirement plan participation/enrollment as a point-in-time decision. Several new and more effective auto-services are being discussed by advisors and implemented by plan sponsors. Two of these new services can be used to help optimize employee savings and investment behavior periodically after the point of eligibility. Source: Troweprice.com »» Click here for more on Automatic 401k Plan Features Target-Date Funds TDF Analysis Highlights Passive Growth, Home Equity Bias Abstract: In its discussions with TDF managers, Mercer has found many managers say they have not aligned with the ACWI, and have continued with portfolios that display home equity bias for a number of reasons; the research also shows strong growth in passive TDF market share. Source: Planadviser.com »» Click here for more on Target-Date Funds Court and Legal Case Filed Against Home Depot for Alleged Abuses in 401k Plan Abstract: The suit alleges "that Home Depot violates basic fiduciary duties under ERISA and abuses its employees' trust by mismanaging their 401k retirement plan. According to the complaint, Home Depot has selected multiple poorly-performing funds for its 401k plan, allowed investment advisers to charge its employees unreasonable fees, and turned a blind eye to a kickback scheme between an investment adviser and the plan's recordkeeper." Source: Prnewswire.com »» Click here for more Court and Other Legal Issues Legislative and Washington DC Like It or Not, Annuities Are Coming to Retirement Plans Abstract: Some would argue that annuities and 401k plans should never mix. Brace yourselves, because legislation is being considered in Congress that could clear a path for more employers to offer annuity products in their retirement plans. Source: Investmentnews.com (registration may be required) »» Click here for more on Legislative Actions Fiduciary Rule SEC Announces Open Meeting on Fiduciary Issues Abstract: The Securities and Exchange Commission has announced plans for an open meeting to consider the agency's long-awaited and much anticipated fiduciary proposal. Source: Asppa.org »» Click here for more on the DOL's Fiduciary Rule Compliance and Regulatory 401k Loans: Considerations for a Plan Abstract: Your retirement account is sacrosanct...until it isn't. Sometimes a rainy day arrives before retirement, and the seemingly untouchable is a tempting source of short-term support and relief. Recent discussions about 401k loans look at the scale of the practice, the consequences and what a plan may consider concerning a policy for them. Source: Asppa.org »» Click here for more Compliance and Regulatory Material Marketplace News Patrick Murphy Named CEO of John Hancock Retirement Plan Services Stradley Ronon Forms Fiduciary Governance Group BPAS Acquires Puerto Rico's HR Consultants Pentegra Names Regional Senior Vice President for TPA Services Epic Advisors Acquires Retirement Plan Services »» 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
|
