Ted Godbout

By Ted Godbout 1/19/2021

Whether in the form of an IRA or 401(k), certain aligning factors suggest that the prospects for gains in the Roth market are strong, according to a recent report. In the Cerulli Edge—U.S. Retirement Edition, 4Q 2020, which looks at retirement trends for 2021, the firm observes that demographic... READ MORE

401(k) Participants Endured 2020 Roller Coaster

By Ted Godbout 1/19/2021

It was an up-and-down year for the markets, rewarding those who stood pat, but it appears that some 401(k) plan participants broke the cardinal rule about selling low and buying high. According to the Alight Solutions 401(k) Index: Full Year 2020 Observations, 401(k) investors in 2020 were busy... READ MORE

Chairman Neal Eyes Broad-based Retirement Security Reforms

By Ted Godbout 1/12/2021

The chairman of the House Ways & Means Committee has released a new legislative framework for the 117th Congress that includes an ambitious retirement policy agenda. In what has long been a priority for him, committee chairman Rep. Richard Neal (D-MA) is calling for implementation of auto-... READ MORE

How COVID-19 Is Affecting 2021 Retirement Planning

By Ted Godbout 1/10/2021

Reactions to COVID-19 and the impact on consumer confidence is prompting many consumers to reassess their retirement and financial plans. A majority of today’s workers and retirees range from feeling cautious to pessimistic about the economic outlook for 2021, according to the Principal Financial... READ MORE

Truist Deals Retirement Business to OneDigital, Ascensus and Empower

By Ted Godbout 1/8/2021

Truist Financial Corporation announced Jan. 6 that it has sold its institutional 401(k) investment advisory services business to OneDigital Investment Advisors (OneDigital), and has signed definitive agreements to sell its institutional 401(k) recordkeeping businesses to Ascensus and Empower... READ MORE

Senate Tilt Portends Big Policy Shifts

By Ted Godbout 1/7/2021

The election of the two Georgia Senate Democratic candidates—and the resulting shift in control of the U.S. Senate—could have profound implications for President-elect Joe Biden’s policy agenda—including retirement plans. The election of Democrats Raphael Warnock and Jon Ossoff brings the party... READ MORE

Biden Picks Boston Mayor to Lead DOL

By Ted Godbout 1/7/2021

Boston Mayor Martin J. “Marty” Walsh has been selected by President-elect Joe Biden to be the next Secretary of Labor, according to an announcement by the Biden-Harris Transition Team. Given Biden’s career-long ties to organized labor and campaign calling for higher wages, stronger benefits, and... READ MORE

IRS Reaffirms Deductibility of Eligible PPP Expenses

By Ted Godbout 1/6/2021

Sometimes it’s best not to pick a fight with Congress, because the lawmakers will likely have the final say. Such is the case with respect to the deductibility of eligible expenses under the Paycheck Protection Program (PPP). The Treasury Department and the IRS on Jan. 6 issued guidance... READ MORE

Pooled Employer Plans Are Here—Will They Be the Next Big Thing?

By Ted Godbout 1/1/2021

The year 2021 is upon us, and with that, the SECURE Act’s much-anticipated pooled employer plans (PEPs) are coming online. Many firms have already announced that they plan to offer PEPs, but will they be a game-changer or slow to get off the ground? A recent report by Cerulli looks at some of the... READ MORE

401(k) Investors Warming Back up to Equities

By Ted Godbout 12/30/2020

Following a month when all trading days favored fixed income, 401(k) investors resumed trading into equities, according to the latest Alight Solutions 401(k) Index. With the S&P 500 posting its best November ever, there were nine days during the month where net trades went from fixed income... READ MORE

Partial Plan Termination, PPP Relief in COVID Deal

By Ted Godbout 12/22/2020

It’s hard to find among the nearly 5,600 pages of text, but there is some important retirement plan relief in the $900 billion COVID stimulus package. Perhaps the most significant element is a “temporary rule preventing partial plan termination.” The provision, for which the American Retirement... READ MORE

Date Set for DOL’s Investment Advice Exemption—But Will it Matter?

By Ted Godbout 12/18/2020

The Department of Labor’s newly finalized prohibited transaction exemption for offering investment advice was published in the Federal Register Dec. 18, yet questions remain about whether it will actually come to be. Released on Dec. 16, the new, principles-based prohibited transaction class... READ MORE

401(k) Savings Rate Steady, But Short-term Savings Takes on Added Priority

By Ted Godbout 12/16/2020

Despite the many financial challenges brought on by the global pandemic, the good news is that saving for retirement continues to be a priority. According to findings from T. Rowe Price’s 6th annual Retirement Savings and Spending survey, the average 401(k) savings rate has remained constant... READ MORE

DOL Fiduciary Rule Rewrite Ready for Liftoff?

By Ted Godbout 12/15/2020

The Department of Labor’s proposed new fiduciary rule has moved one step closer to being finalized and could be released any day now. The DOL sent the final version on its proposed advice package, “Improving Investment Advice for Workers & Retirees,” to the White House’s Office of Management... READ MORE

A Retirement Dashboard for the U.S.?

By Ted Godbout 12/14/2020

Noting that the U.S. retirement system is not easy to navigate, a recent white paper calls for the creation of a retirement dashboard to help savers better manage and keep track of their savings. “While it would not address systemic problems such as coverage, a dashboard could reduce the strain... READ MORE

Senate Panel Hears Calls for Action on Retirement Security Legislation

By Ted Godbout 12/10/2020

The chances that bipartisan retirement security legislation could be acted on next year got a boost, as the American Retirement Association and witnesses at a Senate hearing urged Congress to act to help Americans save more for retirement. Expanding the start-up credit for small businesses,... READ MORE

IRS Issues Final Rollover Rules for Qualified Plan Loan Offsets

By Ted Godbout 12/8/2020

The Internal Revenue Service released final regulations Dec. 7 relating to amendments made by the Tax Cuts and Jobs Act (TCJA) providing an extended rollover period for a qualified plan loan offset (QPLO). Section 13613 of TCJA amended Internal Revenue Code Section 402(c)(3) to provide an... READ MORE

Will the Lame Duck Produce Any Retirement Legislation?

By Ted Godbout 12/4/2020

Congress faces a government funding deadline, while a bipartisan group of lawmakers push for emergency COVID-19 relief, but it’s not clear whether there will be an opening for retirement relief. Time is running short, as Congress is facing a Dec. 11 deadline to approve either a catch-all funding... READ MORE

Q3: 401(k) Participants, Self-Directed 401(k) Balance Growth Hold Steady

By Ted Godbout 12/4/2020

Heading into the fourth quarter, there are both encouraging signs and cause for caution. Undeterred by the COVID-19 economic downturn, Americans overwhelmingly continued saving for retirement through defined contribution plans during the first three quarters of 2020—and markets have been walking a... READ MORE

Lifetime Income Strategies Still Struggling to Gain Traction

By Ted Godbout 12/3/2020

Lifetime income solutions can help millions better manage the spend down challenge in retirement, but a new study finds that these instruments still have not been widely embraced by consumers or plan administrators. According to the study, “Lifetime Income to Support Longer Life: Retirement... READ MORE

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