Five Steps 401k Plan Sponsors Should Resolve to Take in 2019
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In This Issue
Fiduciary and Plan Governance Five Steps 401k Plan Sponsors Should Resolve to Take in 2019 Abstract: A new world of fiduciary is upon us. What does this mean for 401k plan sponsors and the financial professionals that serve them? How should this new fiduciary atmosphere change their focus? In many ways, 401k plan sponsors might be surprised to discover the path has never been clearer In fact, the journey can be described in these five easy steps. Source: Fiduciarynews.com »» Click here for more Fiduciary and Plan Governance Material General Items 401k Conundrum - Is a Roth or Traditional Best for Millennials? Abstract: Millennials who are just entering the workforce might be in a low tax bracket now and a high tax bracket later on in their careers. That means in retirement they stand to benefit more from contributing to a Roth 401k or Roth IRA than a traditional 401k or IRA. By contrast, those who might be in high tax bracket now and a low tax bracket in retirement stand to benefit more from contributing to a traditional 401k. Source: Thestreet.com Required Minimum Distribution Rules: Everything You Need to Know Abstract: The consequences of failing to take your RMDs are quite severe, so it's important to know not only whether the RMD rules apply to you but also how much money you have to withdraw from your retirement accounts in order to satisfy the requirements. Source: Fool.com Our Retirement Savings Fuel a Stronger Nation Abstract: The truth is that retirement savings in America do far more than just help provide post-retirement income. Workplace savings have become an indispensable source for American capital formation generally. Source: Bostonglobe.com Insight: Studies, Research, and White Papers Abstract: CITs are tax-exempt, pooled investment vehicles sponsored and maintained by a bank or trust company. Typically, available only to qualified retirement plans, CITs combine assets from eligible investors into a single investment portfolio with a specific investment strategy. By pooling assets, sponsors of CITs may take advantage of economies of scale to offer lower overall expenses. The sponsoring trustee provides an additional level of risk management, and today's CITs offer more innovative investment opportunities than in the past. Source: Seekingalpha.com Comparing Seven Defined Contribution Plan Designs Abstract: When designing a plan, you look at objectives, the need for flexibility, ages of the key personnel, salaries of everyone involved, total budgeted dollars, the advantages of adding 401k features. This chart shows the results of an analysis prepared for one company that wanted a defined contribution plan. Source: Consultrms.com »» Click here for More Studies, Research, and White Papers Items of Special Interest to Service Providers Market Downturn Could Accelerate 401k Recordkeeper Consolidation Abstract: Plan advisers would be wise to watch the 401k recordkeeper market closely as it enters its next phase of consolidation, which may begin soon. As plan advisers look to cut back on the number of their provider partners, picking on the wrong side of recordkeeper consolidation will be painful and costly. And a market downturn could accelerate the transactions. Source: Investmentnews.com (registration may be required) Four Major Challenges for 401k Plan Providers Now Abstract: Every year presents new challenges for retirement plan sponsors and advisors. Here are just a few items to watch, as well as suggestions to stay ahead of the curve. Source: 401kspecialistmag.com Court and Legal Watch These ERISA Cases in 2019 Abstract: A number of vexing issues facing ERISA practitioners came to a head in 2018 and are primed to be resolved in the coming year. This article examines the cases raising these issues, and the impact their resolution in the coming year will have on retirees and the retirement industry. Source: Cohenmilstein.com Transamerica Sued Over 401k Plan Investment Options Abstract: Current and former participants in the Transamerica's 401k plan have sued the company and plan fiduciaries, alleging they breached their duties under ERISA by failing to remove underperforming proprietary investments. The defendants "saddled the plan's participants with substandard investment portfolios that were managed by a Transamerica affiliate," said the complaint. Source: Pionline.com New Class Action Lawsuit Examines How a Common Definition of Compensation Was Applied Abstract: A recent class action lawsuit emphasizes the importance of clarity in plan language, particularly the definition of compensation, a frequent source of errors. As most plan administrators are aware, what elements of pay are counted as compensation for various purposes of the plan can vary and change from time to time, particularly when payroll systems or vendors change or employers adopt different compensation designs. In this case, the plaintiff has asserted that the plan sponsor should have treated certain post-termination bonuses as benefitable compensation under the terms of the plan. Source: Groom.com »» Click here for more Court and Other Legal Issues Multiple Employer Plans (MEP) Why MEPs Aren't Right for All 401k Plan Sponsors Abstract: Multiple-employer plans, or MEPs, are all the rage these days. However, there are some restrictions around MEPs, namely that they provide a one-size-fits-all solution in a world where customization has become king. For that reason, there has been a movement toward the de-adoption of MEPs that is not only very real, but also sheds light on why MEPs are a good option for some plans and a poor fit for others. Source: Investmentnews.com (registration may be required) DOL Rule to Expand MEPs: A Positive Step, but Broader Savings Options Needed Abstract: The Department of Labor is considering new rules to facilitate retirement saving in workplace retirement accounts for sole proprietors and the owners and workers of small businesses. While these rules are a small step in the right direction, Congress must simplify saving for retirement and other needs for all Americans. Congress and the Administration should work together to simplify saving for all Americans. Universal Savings Accounts should be first on their agenda. Source: Heritage.org »» Click here for more on Multiple Employer Plans Compliance and Regulatory Puerto Rico Announces 2019 Limits on Qualified Retirement Plans Abstract: The Puerto Rico Department of the Treasury issued Internal Revenue Informative Bulletin No. 18-24 (IB 18-24) announcing the 2019 applicable limits for Puerto Rico qualified retirement plans. Source: Littler.com IRS Releases Determination Letter Guidance in RP 2019-04 Abstract: The IRS has released its annual guidance including Revenue Procedure 2019-4 providing guidance on obtaining a determination letter. Source: Irs.gov »» Click here for more Compliance and Regulatory Material Marketplace News Abry Partners Agrees to Significant Investment in Millennium Trust »» Click here for More Marketplace News
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