Trump Signs Executive Order to Boost Retirement Savings
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In This Issue
Legislative and Washington DC Trump Signs Executive Order to Boost Retirement Savings Abstract: President Donald Trump on Friday signed an executive order aimed at boosting retirement savings by giving Americans more time to keep their money in tax-deferred accounts and allowing small businesses to band together to offer 401ks. Trump described the order as a "very bold action to lower the costs of retirement plans so that they can become an affordable option for businesses of all sizes." Source: Politico.com House GOP Expected to Push Changes to 401ks This Fall Abstract: Although it's uncertain exactly what will be proposed, House GOP lawmakers will use existing legislation -- which has bipartisan support -- as a starting point. In that bill, proposals include making it easier for companies to include annuities in their investment options and for small businesses to pool their resources to offer 401ks to their workers. Source: Cnbc.com Trump Order Seeks to Ease Retirement Account Rules for Required Withdrawals Abstract: The purpose of reviewing rules related to required minimum distributions from 401k plans and IRAs would be to update the calculations used to determine those mandated amounts so retirees can stretch out their savings. The president's order also would ask regulators to consider making it easier for small companies to team up to offer 401k plans to employees. Source: Cnbc.com »» Click here for more on Legislative Actions General Items A New Way to Use Your 401k Plan to Attract and Retain Recent Graduates Abstract: The average student loan debt for a Class of 2016 graduate is $37,172. As recent graduates enter the work force, they often choose not to contribute to their employers' 401k plans because they prefer to focus on paying off their student loans or simply can't afford to pay off loans and put away money for retirement at the same time. What if there was a way to allow those recently graduated employees to continue repaying their loans and still share in company 401k plan contributions? Source: Laboremploymentperspectives.com Fiduciary and Plan Governance Self-Directed Brokerage Windows in 401k Plans: Do Fiduciaries Have to Look Inside? Abstract: One might think that there is a lower level of liability risk for plan fiduciaries where a brokerage window is available, particularly where the window supplements a menu of selected investment options, because it gives plan participants greater choice without any expectation that the fiduciaries are responsible for each investment available through the window. However, there can still be fiduciary obligations related to offering the brokerage window that, if not met, could trigger liability. Source: Morganlewis.com Fundamental Unfairness: ERISA Section 404(c) Is Not Working Abstract: The article's author believes that most plan sponsors fail to comply with section 404(c)'s "sufficient information" and "control" requirements. Plan sponsors must have that information in order to (1) comply with their fiduciary duty to conduct an independent investigation and evaluation of a plan's investment options, and (2) to ensure that the plan options provide plan participant with the opportunity to effectively diversify their retirement account and minimize the risk of large losses. Source: Iainsight.wordpress.com Common Retirement Plan Sponsor Misconceptions Abstract: Due to the large amount of work in starting and maintaining their retirement plan, sponsors often overlook certain aspects that may expose them to potential liability. Additionally, some plan sponsors are unaware of the ongoing fiduciary duties which can result in misconceptions about the plan and its participants. These misconceptions can be costly, and sponsors may find themselves in trouble with the IRS or the Department of Labor. Source: Planpilot.com »» Click here for more Fiduciary and Plan Governance Material Insight: Studies, Research, and White Papers Participant Financial Wellness Abstract: Preparing for the future while being tethered to debt is an increasingly common dilemma for retirement plan participants, especially for those who are paying on student loans, according to a new OneAmerica survey. Source: 401khelpcenter.com New Survey Shows 401k Participants Would Like More Guidance Abstract: New research from Schwab Retirement Plan Services, Inc. reveals that, despite having a positive outlook for retirement, American workers regret past spending and are concerned about being able to ultimately save enough for their golden years. The nationwide survey of 1,000 401k plan participants finds that while 70 percent believe their quality of life in retirement will be better than that of both their parents and their children, saving for retirement is still their number one source of financial stress (40%). Source: Schwab.com »» Click here for More Studies, Research, and White Papers Items of Special Interest to Service Providers 401k Advisers See Student Loan Benefits As Next 'Evolution' Abstract: Increasing student loan debt has drawn the attention of retirement plan advisers interested in finding ways to couple 401k plans and student loan repayment programs. In a private letter ruling, the IRS affirmed one employer's approach: Allow employees to choose whether they'd prefer a 5% contribution from the employer to be in the form of a 401k match or a student loan repayment. Source: Investmentnews.com (registration may be required) DOL Fiduciary Rule Post-Mortem: How Long Will the Taste Linger? Abstract: The DOL's Fiduciary Rule has been vacated. In its stead we now have the SEC's "Best Interest" proposal. This is the first in a three-part series that will reflect on the past, present, and future of the fiduciary standard. Source: Fiduciarynews.com Consolidation of Recordkeepers for 401k Plans 'Worrisome' Abstract: Consolidation among recordkeepers in the retirement-plan business has created concern among some financial advisers. While deal activity has waned since a feverish pace of blockbuster acquisitions leading up to 2016, experts believe the frenetic activity will resume within two years' time, especially if there's a downturn in the stock market. And the next round of deal-making is likely to yield some whoppers, they say. Source: Investmentnews.com (registration may be required) 403b Plans Why Is Recordkeeping Pricing Different for 403bs? Abstract: The price of recordkeeping services is not uniform; it can vary depending on type of retirement plan. This article discusses why pricing for 403bs is different than that for 401ks including four factors that impact 403b pricing. Source: Ntsa-net.org »» Click here for More 403b Material Compliance and Regulatory 401k Plan Sponsors Worried About the Number of Participant Loans Abstract: Twenty-five percent of 401k participants have an outstanding loan against their account, according to Alight Solutions. This is undoubtedly why 75% of employers are worried about the level of participant loans in their 401k plan. When offered two loans, 14.4% take advantage of that. When offered three loans, 11.9% do the same. Source: Planadviser.com Frequent 401k Audit Finding - Use of Forfeitures Abstract: During 401k audits, one of the operational failures often encountered are forfeitures that are not used in accordance with the method selected in the Plan's adoption agreement. These failures can be significant and cause corrective action that spread across many years. Source: 5500audit.com Abstract: Timing is everything. You've no doubt heard this phrase, but it holds especially true when it comes to depositing employee deferrals into your 401k plan. Depositing each employee's salary deferral into their 401k plan account may seem like a small piece of the 401k puzzle, but failing to meet the deadlines for depositing the contributions, or not making the deposit at all, can have long-lasting and costly ramifications. Source: Tristarpension.com »» Click here for more Compliance and Regulatory Material Marketplace News NWPS Acquires Kaufmann and Goble Associates »» Click here for More Marketplace News
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