A blog by Rich Rausser, CFC, QPA, QKA, Senior Vice President, Pentegra Retirement Services – July 20, 2016 Taking a holistic approach to designing any client’s retirement plan is a goal well worth trying to attain. This is especially true when it comes to credit…
Aligning Plan Design with Client Goals Most of us live in homes that were not custom-designed for us. We adapt to them rather than expect them to be optimized to how we like to live. Most retirement plans are sold the same way. Companies buy…
…have. Let’s talk about two of them – namely, things we can address in plan design and things we can communicate to help set expectations. In plan design, our first goal is participation. To that end, auto-enrollment has been proven to be effective in getting…
…on Cash Balance plan design best practices, and how to get from simple contribution design to complex contribution design – with and without a calculator – with our back of the napkin approach. We’ll talk strategies on which clients might be the best fit for…
…deducted are not included in the employee’s taxable wages or subject to income tax withholding requirements. However, 401(k) and 403(b) plans that accept designated Roth contributions can specify that the automatic contributions will be designated Roth contributions, which means they are deducted from an employee’s…
Designing effective qualified retirement plans that meet a plan sponsor’s objectives has become somewhat of a lost art. The reasons are many: Cookie-cutter designs are easier; safe harbor designs get media attention; the flexibility of modern plan documents are overlooked; and pre-approved plans can satisfy…
…depending on pay increases and longevity. To mitigate the rapid cost increase plans can use a career average salary, much like 401(K) plans do. Whether this gets coupled with a traditional formula design or uses a Cash Balance design, the result is a lower, more…
…ARE THE DIFFERENT TYPES OF PLAN DESIGNS FOR CROSS TESTED PLANS? Typical Cross Tested plan designs include New Comparability Plans and Age-Weighted plans. With both types of plans, if non-discrimination requirements are met, a larger share of the employer’s contribution may be made on behalf…
…than April 30, 2016. The restatement of the plan is also an opportune time to consider implementing progressive plan features—automatic features—that can help drive positive participant behavior to drive more successful outcomes. Current best practices in 401(k) plan design include adding automatic features to help…
Pentegra administers many 401(k) plans that include standard after-tax contributions—the non-designated Roth 401(k) type. And one thing we have learned is that after-tax contributions can create problems for the sponsor if the plan is not carefully designed and properly administrated. In a 401(k) plan, standard…
…lump sum payment, benefits are also available as an annuity. COST CONTROL – Cash balance plans tend to reduce pension costs because benefit targets are based on current salary rather than projected final average salary. In this sense, cash balance plans are similar in design…
…some TPAs go the extra mile to help you better serve your clients with additional value-added services and capabilities that could help mitigate fiduciary risk, provide plan design consulting services, and offer other ways that can ultimately help you grow your practice. Longevity. While it…