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Defined Contribution Plans
The Plan Sponsor Council of America (PSCA) has released a new campaign to help American workers better understand their retirement plan and retirement readiness by “Knowing Your Numbers.”
The Friday after Labor Day has been designated 401(k) Day—a day to focus on retirement planning and...
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Amid the dog days of summer, 401(k) plan investors were light traders in July, according to the Alight 401(k) Index.
In fact, there were no above-normal trading days, as Wall Street posted its best month since November 2020, the firm notes in its July 2022 Observations. In comparison, the month...
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The July 31, 2022, deadline for restating pre-approved 401(k) plans has come and gone. If a plan missed that deadline, now what? A recent blog entry offers some suggestions.
July 31 was the deadline for the latest plan remedial amendment cycle (Cycle 3). In a recent entry in the JacksonLewis blog...
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Amid fears of rising inflation and ongoing market volatility, 401(k) participants remained busy but cautious traders in the second quarter of 2022.
According to the Alight Solutions 401(k) Index, net trading activity significantly favored fixed income during the second quarter, with 51 out of 62...
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So, how many 401(k) accounts do you have?
At the moment, I have four—one from each of the employers in my career (including this one), all except the first one (that one went for law school and a house downpayment). Apparently I’m not alone. A recent survey of Plan Sponsor Council of America...
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Plan documents are the “lifeblood” of compliance, asserted an industry expert in a recent ASPPA webinar.
In a June 30, 2022 ASPPA webinar, John P. Griffin, JD, LLM Principal at the ASC Institute, discussed a variety of plan document issues.
Plan documents “drive communication, they drive...
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“Retirement plan leakage” has been a pressing issue for policymakers and practitioners for a number of years. A report issued to the Senate Special Committee on Aging by the GAO in 2021 showed plan participants ages 25 to 55 withdrew $9.8 billion from retirement plans without rolling the account...
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A bill before the New Jersey legislature will require that there be multiple vendors for purposes of providing certain retirement plans to school districts.
The legislation provides that a board of education of a school district with an enrollment of at least 1,000 students that offers a 403(b...
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Eleanor Shellstrop has operated her fledgling business, The Good Place, for about seven years now. She established a 401(k) Profit Sharing Plan somewhere around Year 2 at the recommendation of her CPA. The CPA set up the plan for her with a bundled service provider. Whatever the CPA put on the...
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In a testament to the willingness of plan sponsors to implement smart plan design, retirement plan participants broke new savings records in 2021, yet there is still more to be done, according to Vanguard’s newest edition of How America Saves.
The firm notes that it saw record-high participation...
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Despite record inflation, economic unrest and a global conflict, defined contribution plan participants continued to save and invest in their retirement plans at work.
That’s according to the Investment Company Institute’s Defined Contribution Plan Participants’ Activities, First Quarter 2022...
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While retirement readiness has improved over the past two years for many DC plan participants, new data bolsters the case that the chances of achieving retirement readiness are highest when plan sponsors take advantage of automatic plan features.
According to John Hancock Retirement’s most recent...
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Despite market turbulence, participants within self-directed brokerage accounts (SDBAs) did not make significant changes to their investments over the course of the first quarter.
According to Charles Schwab’s latest SDBA Indicators Report on plan participant investment activity within SDBAs,...
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Following a month when there were no above-normal trading days despite high levels of market volatility, 401(k) traders seemingly decided to change course in May.
According to Alight’s May 2022 401(k) Index, 12 of 21 days in May had above-normal 401(k) trading activity, but no day exceeded three...
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A new report entitled “The Missing Middle” by the National Institute on Retirement Security (NIRS) treads some all-too-familiar ground, myopically focusing on one element of the nation’s private retirement system.
The articulated concern is, of course, the “middle”—an income grouping for which...
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The American Retirement Association (ARA) in a May 25 comment letter has made recommendations to the IRS concerning the proposed required minimum distributions (RMD) regulations issued in February 2022, including that the IRS delay the effective date of the regulations when they are in final form...
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Personalized solutions reportedly are becoming more attractive for plan sponsors who are encouraging those saving for retirement to remain with their 401(k) provider after they leave the workforce.
That’s according to PIMCO’s 16th Annual Defined Contribution Consulting Study, which surveyed 36...
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The IRS in a May 23 edition of Employee Plan News provides a comprehensive discussion of the impact of missing a deadline for restating a pre-approved 401(a) or 403(b) plan and how such a situation can be handled.
To maintain a plan’s status as a pre-approved plan and retain uninterrupted...
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Editor’s note: This is the second in a two-part series. The first installment appeared here.
In my last column, I argued that when ERISA diversification requirements are met, the only remaining prudence issue is price and that, regarding an asset (e.g., stock in a company) that is traded in a...
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The graduates of 2022—well, they’ve been through a lot, arguably more than most—but with any luck at all, the days and years ahead will be brighter.
Life has many lessons to teach us, some more painful than others—and some we’d just as soon be spared. Regardless, if you have a graduate—or if you...
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