How a 'Mega Roth' Can Help Your DC Plan
|
In This Issue
General Items How a 'Mega Roth' Can Help Your DC Plan Abstract: Plan sponsors who want to allow participants to contribute more Roth monies to a defined contribution plan than the standard limits have an option: An in-plan Roth conversion of after-tax contributions in the same year they are made to the DC plan. Source: Callan.com Fiduciary and Plan Governance DOL and ESG Investing: Evolving Guidance Abstract: This article describes the key points from FAB 2018-01 and then provide a summary of the ever-changing regulatory framework ERISA fiduciaries have been instructed to use when considering proxy voting and investing in ETIs. Source: Groom.com 401k Plan Sponsors in Desperate Need of Fiduciary Know-How Abstract: Ensuring that Americans are able to retire with dignity (and sustain that dignity throughout retirement) begins with helping 401k plan sponsors realize and fulfill their fiduciary obligations. It's a concept easy enough for an advisor to write on their to-do list, but more difficult than it seems to check off. Source: 401kspecialistmag.com »» Click here for more Fiduciary and Plan Governance Material Items of Special Interest to Service Providers 401k Recordkeeper Consolidation Is About to Heat Up Abstract: Though there have been a few recent high-profile 401k recordkeeper acquisitions, there has been a lull in the consolidation. That's likely to change soon as a result of escalating costs, low interest rates and the natural maturation of the 401k recordkeeping business. Source: Investmentnews.com (registration may be required) Ascensus Gets Set to Roll Up a World of TPAs to Create a Small Plan Superpower Abstract: Sometimes it seems like the DOL rule has affected everything in financial advice except the 401k business. Fidelity rolls on. Yet there's a rush to capture small 401k plans that pre-rule were deemed so small that unless outsized, ugly and hidden fees were charged to make up for the broker's inconvenience in dealing with them, they wouldn't exist. Now, the combination of the new rules curtailing brokerage excesses, an explosion of 401k assets and the better technology being built to handle small accounts cheaply is changing the way people see microplans. Source: Riabiz.com 403(b) Plans Litigation, Scale Push Private Colleges to Adopt Multiple Employer Plans Abstract: Pioneers circled their wagons for mutual protection, and a new trend emerging in the 403b space employs a roughly similar tactic. Small and independent, nonprofit private colleges -- in search of ways to improve the retirement outlook for faculty and staff, and mindful of regulatory and litigation risks -- are banding together at the state level to establish multiple employer plans, or MEPs. Source: Investmentnews.com (registration may be required) »» Click here for More 403(b) Material Target-Date Funds Passive Target-Date Funds: Separating Myth From Reality Abstract: The use of passive target-date funds in DC plans continues to grow, in part due to their low-cost relative to other TDF options. While the cost advantages of these TDFs can be attractive, cost represents only one of the factors that plan sponsors and their advisors should consider when selecting a TDF on behalf of participants. This 11-page paper highlights three common myths about passive TDFs to help plan sponsors dig deeper in their due diligence and ensure they follow a prudent selection process based firmly on their specific plan needs. Source: Schwabfunds.com »» Click here for more on Target-Date Funds Court and Legal DOL Secures Prison Time for Two Florida ERISA Fraudsters Abstract: A pair of former executives of First Farmers Financial are being punished for their involvement in the sale of $179 million in fraudulent loans to a Milwaukee company that provided investment services to 42 retirement plans covered by ERISA. Source: Planadviser.com Dissecting Retirement Plan Lawsuit Issues Abstract: The stream of lawsuits filed for alleged mismanagement of retirement plans has been a cause for concern for plan sponsors of all different sizes and industries across the country. This article explores the more frequently cited issues, focusing on the recent lawsuits filed against higher education and healthcare institutions. It also provides some thoughts on how retirement plan sponsors can prepare their plans and protect fiduciaries. Source: Cammackretirement.com »» Click here for more Court and Other Legal Issues Cybersecurity Employers Unprepared for 401k Plan Data Breaches Abstract: The U.S. retirement model has become of increasing interest to foreign hackers, typically the perpetrators of large-scale data breaches. However, companies, plan sponsors and plan participants are unaware or underprepared for the ramifications of a cyberattack, experts warn. Source: Benefitnews.com »» Click here for more on Cybersecurity Issues Fiduciary Rule Fiduciary Proposal: Revenge of the SEC Abstract: This article provides an overview of the core provisions of the SEC's Best Interest Package, as well as high-level observations on how it tracks or departs from the DOL's Fiduciary Rule. Source: Groom.com States Step Forward in Fiduciary Fight Abstract: Three states have now entered the fiduciary rule litigation arena, claiming that they "can no longer rely on DOL to adequately represent their interests." The states involved -- California, New York and Oregon -- have filed two separate motions. Source: Napa-net.org »» Click here for more on the DOL's Fiduciary Rule Compliance and Regulatory Wells Fargo Investigated by DOL Over 401k Rollover Practices Abstract: The Labor Department is looking into whether Wells Fargo & Co. has steered participants in low-cost corporate 401k plans into more expensive IRAs at the bank, The Wall Street Journal reported on Thursday. Source: 401kspecialistmag.com Wells Fargo Wouldn't Be the First to Push Proprietary Products on 401k Participants Abstract: The disclosure of an alleged Labor Department investigation of Wells Fargo sales practices -- including those in its retirement-plan services division -- is sure to raise a few eyebrows, but should this sort of thing really be a revelation to anyone in the 401k industry? Source: Investmentnews.com (registration may be required) Four Tips for Preventing Uncashed Retirement Checks Abstract: No plan sponsor or TPA likes dealing with uncashed retirement checks. However, when a former employee fails to cash their distribution, the employer still has fiduciary responsibility for the funds. Here are four ways to decrease the burden involving ex-employees and uncashed checks. Source: Penchecks.com »» Click here for more Compliance and Regulatory Material Marketplace News FS-ISAC and Spark Institute Expand Focus to Protect Retirement Accounts NAPA Welcomes Acheson as President Ascensus Appoints Jerry Bramlett to Head TPA Solutions FPS Group Unveils Updated IPX Platform »» 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
|
