Ted Godbout

Individual Account Ownership Key Differentiator in Net Worth

By Ted Godbout 4/6/2018

Not only do individual account assets make up a large portion of the financial assets of those who own them, but those with individual accounts have significantly higher net worth levels than those without them, according to new research by the Employee Benefit Research Institute (EBRI).Based on an... READ MORE

New York State Enters Private Retirement Savings Push

By Ted Godbout 4/3/2018

Following in the footsteps of several other states, the Empire State is moving forward with its own voluntary retirement savings program for employees who are not offered a plan through their employer.At a March 30 press conference, Gov. Andrew Cuomo (D) announced that he had reached an agreement... READ MORE

401(k) Costs and Mutual Fund Expense Ratios Continue Downward Trend

By Ted Godbout 3/28/2018

Since 2009, total 401(k) plan costs have decreased whether measured on a plan-, participant- or asset-weighted basis, according to the latest report in the BrightScope/ICI Defined Contribution Plan Profile series.Based on BrightScope’s total plan cost measure, which includes all fees on the audited... READ MORE

What’s a Plan Sponsor to Do About Missing Participants?

By Ted Godbout 3/26/2018

Given the recent attention and lack of formal guidance addressing missing participants for ongoing DC plans, there are increasing calls for the government to formally address how far plan sponsors need to go to find missing participants.Noting that the IRS, Labor Department and PBGC have been... READ MORE

DB Plan Performance Still Ahead, but DC Plans Catching up

By Ted Godbout 3/23/2018

While many would argue that comparing the returns of DB and DC plans is not an apples-to-apples analysis, a new report examines the plan performance gains that DC plans have made against DB plans.CEM Benchmarking’s report, “Defined Contribution Plans Have Come a Long Way,” finds that DB funds have... READ MORE

HSA Savers on the Rise, But Most Not Maximizing Contributions

By Ted Godbout 3/15/2018

While the majority of HSA account holders are spenders, a new report indicates a potential shift in the saver/spender trend, as more employees express concern with health care costs in retirement.ConnectYourCare’s 2018 report — “CDH Account Trends: Tax-Advantaged Account Usage, Outlook and... READ MORE

Institutional Investors Turn to Alts, ESG and Risk Management as Volatility Looms

By Ted Godbout 3/1/2018

While still making the most of what they can in today’s market, institutional investors have been bracing for the impact of renewed market volatility, taking steps to diversify and construct durable portfolios, according to new survey findings.Natixis Investment Managers’ sixth consecutive annual... READ MORE

Study Finds Shift in Retirement Offerings

By Ted Godbout 2/28/2018

A Willis Towers Watson study finds that most large employers now provide only defined contribution and other account-based plans to newly hired employees. “Retirement Offerings in the Fortune 500: A Retrospective” examines the primary retirement plans offered by current Fortune 500 companies... READ MORE

How Influential Is Plan Access and Participation on Retirement Planning?

By Ted Godbout 2/26/2018

Workers who have participated in an employer-sponsored plan are much more likely than those who have never participated to report that they have recently tried to figure out how much retirement income they will need, according to new research. Overall, 41% of those with access and currently... READ MORE

401(k) Contribution Rates Trending Upward

By Ted Godbout 2/15/2018

Savers across all generations expect to increase their 401(k) contributions in the coming months, according to the results of a new survey that examines 401(k) savers’ attitudes and behaviors. T. Rowe Price’s third installment of its Retirement Savings and Spending survey finds that this is... READ MORE

Retirement Provisions Included in Federal Budget Deal

By Ted Godbout 2/9/2018

The two-year budget agreement that Congress passed in the early morning hours of Friday, Feb. 9 includes several tax policy changes affecting retirement plans.In general, the amended version of the Bipartisan Budget Act of 2018 (H.R. 1892) increases discretionary budget caps for both defense and... READ MORE

Senate Panel Explores Ideas to Foster Retirement Savings for ‘Gig’ Workers

By Ted Godbout 2/8/2018

Witnesses at a Feb. 6 Senate committee hearing debated current challenges and offered several policy proposals to help so-called “gig economy” workers save for retirement.At the Senate HELP Subcommittee on Primary Health and Retirement Security’s roundtable-style hearing, four panelists argued for... READ MORE

How Much Do 401(k) Participants Know About Their Plan Fees?

By Ted Godbout 2/6/2018

New survey results from TD Ameritrade suggest that three-quarters of Americans are in the dark when it comes to 401(k) fees.The survey of more than 1,000 investors finds that the vast majority of people either erroneously believe they do not pay any 401(k) fees (37%), are unaware whether their plan... READ MORE

Are HSAs a Better Investment Vehicle Than 401(k)s?

By Ted Godbout 2/5/2018

Of course it depends on what factors you consider, but when considering the tax advantages, an argument can be made that HSAs are a better investment vehicle, particularly when used only for qualified medical expenses, a new report claims. “HSA Investing: 3 Reasons Investing in an HSA is Not the... READ MORE

EBSA Enforcement Action Robust in FY 2017

By Ted Godbout 1/31/2018

Total monetary recoveries by the Employee Benefits Security Administration’s (EBSA) enforcement and oversight activity in fiscal year 2017 were up from the previous year, according to an annual fact sheet released by the agency. The federal government’s fiscal year is Oct. 1-Sept. 30. In FY 2017... READ MORE

Changes to Personal Casualty Loss Deduction Could Affect 401(k) Hardship Withdrawals

By Ted Godbout 1/26/2018

In the wake of any new tax law, there are always issues that cause problems when the new provisions are put actually into practice. One such issue with the recently enacted Tax Cuts and Jobs Act: hardship withdrawals from a 401(k) plan to address a personal casualty loss of a principal residence... READ MORE

TCJA Changes Could Affect 401(k) Hardship Withdrawals

By Ted Godbout 1/23/2018

In the wake of any new tax law, there are always issues that cause problems when they are actually put into practice. One such issue is that hardship withdrawals from a 401(k) plan to address a personal casualty loss of a principal residence may no longer be allowed unless the loss is attributable... READ MORE

FINRA 2018 Budget Shows no Rate Increases for Member Firms

By Ted Godbout 1/22/2018

As a step toward increasing transparency, the Financial Industry Regulatory Authority (FINRA) for the first time has released its annual budget, showing that the 2018 budget does not include a fee rate increase for its member firms, despite certain “evolving” challenges.FINRA’s Financial Guiding... READ MORE

Average IRA Balance for Consistent Account Owners up Nearly 50% Since 2010

By Ted Godbout 1/18/2018

Individual retirement accounts generally show consistent growth, but differences do arise when comparing data samples, according to a new report from EBRI.For example, while the cross-sectional overall average balance increased 36.1% from 2010 to 2015, the increase for those IRA owners who... READ MORE

How Do Millennials’ Savings Habits Compare to Other Generations?

By Ted Godbout 1/17/2018

Every month, it seems, new research comes out suggesting that Millennials are doing better at saving than their older counterparts. But are they really?The latest results come from Discover, which found that Millennials apparently are outperforming older generations as a whole when it comes to... READ MORE

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