…behalf of the plan. Some number of plan sponsors don’t know this even though we try to do our best to make this clear. There are real and serious consequences for them and for your relationship with them if they don’t execute their role well….
…guidance on how to best evaluate these programs and optimally align programs with opportunities. Learn more about the pros and cons of each type of design and how to best meet the needs of the enterprise recordkeeping partner to the investment manager and individual advisor….
…discuss why we believe an IPS is an essential element of risk management and fiduciary best practice. What is the purpose of an IPS? The IPS for a plan optimally serves as a framework or guide for the plan investment committee to make investment decisions….
…of Economic Analysis, September 29, 2023 [4] Consumer Financial Protection Bureau, Emergency Savings and Financial Security, 2022 [5] Ibid, p.36 [6] White, Martha C., “Its More Expensive to Live and Workers are Tapping 401(k)s to Live,” New York Times, May 29, 2023 [7] Munnell, Alice…
…eligible for consolidated filing, plans must: Consist of defined contribution plans Have the same Trustee Have the same Named Fiduciary/Fiduciaries Have the same Administrator Use the same plan year Provide the same investments or investment options to participants and beneficiaries Even so, GoPs will likely…
…issued an interim rule that will require plan administrators to issue annual statements to participants illustrating how much income they can expect from their ERISA-governed retirement account, as a single life annuity, as well as via a qualified joint and survivor annuity that includes a…
…of plans (GoP), which the new proposed rules instead call a defined contribution group (DCG). That approach allows employers — whether affiliated or not — to file a single 5500 for multiple defined contribution plans, as long as the plans have the same trustee, administrator,…
…after-tax contributions are amounts that a plan participant elects to set aside from his or her pay after the payroll department withholds taxes. The plan administrator deposits the after-tax contributions in a separate account within the 401(k) plan, where the amounts have the potential to…
…losses resulting from fiduciary breaches. Having a plan committee charter may help mitigate fiduciary liability for the committee members by carefully outlining the members’ roles and responsibilities. Further, having an ERISA 3(16) Fiduciary Administrator may also help to reduce fiduciary liability risk for a retirement…
…outcomes By engaging a 3(16) plan administrator, the plan sponsor shifts fiduciary responsibility to the 3(16) for the services specifically contracted (e.g., plan reporting, participant disclosures, distribution authorization, plan testing, etc.). Not all fiduciary services are created equally, so choose wisely and enjoy the benefits…
…Rowan’s case, $10,000. The plan administrator determines the salary deferral ADP limit for the year is $8,000. The lesser of $22,500, $10,000 or $8,000 is $8,000. Therefore, any salary deferral Rowan would make above $8,000 (up to a maximum catch-up limit of $7,500 for 2023)…
…lost tax savings or retirement savings since they’re not optimized to their particular situation. Aligning retirement plan design with a client’s goals means to listen and assess what their true goals are and then present a range of ideas that can best deliver what they…