Search Results

We have found 105 results matching your search query.

To Roth or Not to Roth?

A compelling feature of a 401(k) type retirement plan has always been the opportunity to contribute money from your current income on a pre-tax basis today – let it work for you over the years – and then pay taxes on the accumulated balance as…

What Do The New Fee Disclosure Rules Do?

…your balance, the more you will pay. Example: If 1 basis point equals 0.01% or 0.0001, than an investment fund with an expense ratio of 50 basis points would cost $500 annually, based on a $100,000 account balance in your retirement plan. $100,000 retirement plan…

Target Date Funds

p>Target date funds, also sometimes called ‘age-based’ or ‘time horizon’ funds, are a series of balanced investment portfolios designed to correspond with a particular retirement time horizon. These funds seek to meet retirement goals through a combination of capital appreciation and income. WHY USE TARGET…

Will The Impossible Be Fun This Time?

…at the so-called ‘risk-free’ rate, for a negative return. The alternative is to simply take your money in cash and hide it in your mattress or bury it in the yard; the return from doing so may indeed be nothing, but that’s still better than…

Can US Interest Rates Go to Zero?

…buying. From an economic growth standpoint, rather than relying on fractional banking for growth, policymakers would need to hope that people will spend their cash as opposed to putting it under their mattresses. Investors may also decide to keep their savings in cash or valuables…

Executive Benefit And Director Plans 101

…reward their top executives & directors based on the performance of specific bank benchmarks. INFORMAL FUNDING ARRANGEMENTS SPLIT-DOLLAR LIFE INSURANCE In a WHO IS CONSIDERED ELIGIBLE? arrangement, cash value life insurance policies are used to fund a non-qualified plan. The employer and employee join in…

Five Retirement Plan Changes that Employers Should Consider

…their retirement savings. End automatic cash-outs. On the other end of the roll-in spectrum is the cash-out: Sponsors can automatically cash out accounts with less than $1,000 that have been left behind by participants who have moved on to new jobs; the PSCA reports that…

What is Non-Discrimination Testing?

…contributions and ACP tests after-tax and employer matching contributions. The Top Heavy Test tests the account balances of key employees vs. non-key employees. Minimum Coverage Test – Tests the population of HCEs vs. NHCEs HOW DOES TESTING THE 401(K) CONTRIBUTIONS WORK? The Actual Deferral Percentage…

Pensions, Retirement and Markets: Five Questions for 2020

…As with any future event, it is unclear what will happen with interest rates in 2020. The Fed is currently signaling a hold on rates or at most one rate cut in 2020. They will have to balance a slowing U.S. economy and mild inflation,…

Are More Modifications Needed Before We Feel SECURE?

…research firm Cerulli Associates, with assets rising from $4.6 million as of July 1, 2018 to $10.9 million as of December 31, 2018. But, Cerulli added, the average balance was less than $500, well below the national average 401(k) account balance of $85,000. The IRI…

When to Set Sail with Safe Harbor

…the account balances of key employees is greater than 60% of the total assets held by the plan. We know that the goal of many company owners is to maximize how much they can contribute each year to their retirement. So, to avoid uncertainty about…

Employer Connect: When to Set Sail with Safe Harbor

…– which determines if the account balances of key employees is greater than 60% of the total assets held by the plan. We know that the goal of many company owners is to maximize how much you can contribute each year to your retirement. So,…