…early without penalty. One new SECURE 2.0 account saving/withdrawal option, however, may actually help to begin reversing the retirement savings shortfall by changing participants’ mindsets and behaviors toward early withdrawals. Our Retirement Savings Crisis For years, studies have been substantiating a retirement savings crisis among…
How does a plan sponsor benefit from its advisor being CEFEX…
What does it mean for a Third Party Administrator to be…
How does an advisor benefit from partnering with a CEFEX-certified TPA? And why is it important? Listen in to find out…
In this article we review the Department of Labor’s (DOL) recently (January 29, 2024) proposed regulation implementing SECURE 2.0’s statutory prohibited transaction exemption for automatic portability transactions that meet certain conditions. Automatic portability is, in effect, a “different way” to implement mandatory distributions (distributions of…
Many financial organizations tout the benefits of their ERISA 3(16) fiduciary services and, frankly, many of these messages can sound irresistibly compelling. But buyer beware; not all 3(16) fiduciary services are created equal. In today’s increasingly litigious environment, it is imperative for plan sponsors to…
The Department of Labor (DOL), Internal Revenue Service (IRS) and Pension Benefit Guaranty Corporation (PBGC) have extensive reporting and disclosure requirements for qualified retirement plan officials. These reporting and disclosure requirements serve the important function of educating and supporting participants in their retirement planning journey,…
We knew it was coming—some type of auto enrollment and auto escalation mandate for 401(k) and 403(b) plans. Congress has long been a proponent of such automatic arrangements as they have proven they boost plan participation. The first “negative election” plans go back 25 years…
An advisor in Ohio asked: “My client suffered an accident and cannot keep employees on at his business. He was wondering if he could lay off employees over time to avoid triggering full vesting for a partial plan termination?” Here’s What We Know The IRS…
A sweeter tax deal may await you as result of recent law changes if you are a “small” business owner who does not currently offer a workplace retirement plan. By small, we mean businesses with 50 or fewer employees. Section 102 of the SECURE Act…
A recent call with an advisor involved a question on 401(k) catch-up contributions. The advisor asked: “When does a 401(k) deferral become a catch-up contribution?” An employee salary deferral becomes a catch-up contribution when it exceeds the lowest of the following three limits (See Treasury…