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Early Withdrawals Can Lead to Tardy Retirements and Problems for Everyone: How to Help

Early Withdrawals Can Lead to Tardy Retirements and Problems for Everyone: How to Help

Albert Einstein may not be remembered as a finance expert, although he seems to have had a bead on the power of smart investing. When asked what mankind’s greatest invention was, he’s reputed to have answered “compound interest,” describing it as the “eighth wonder of the world.”

What’s the Magic Number When it Comes to Record Retention?

What’s the Magic Number When it Comes to Record Retention?

You don’t need to be a magician to know what records to keep and for how long. While most providers can supply reports and plan documents, the plan administrator remains ultimately responsible for retaining adequate records that support the plan document reports and filings.

ERISA 3(38) Fiduciary Services

ERISA 3(38) Fiduciary Services

Most organizations’ human resource departments and C-suites are seeking efficiencies and risk mitigation for their entities. For these, and a myriad of other, reasons, plan sponsors are giving 3(38) fiduciary discretionary investment management services a closer look.

When Does a Participant Loan Become a Deemed Distribution?

When Does a Participant Loan Become a Deemed Distribution?

A recent IRS Issue Snapshot (link below) affirms a participant loan is a legally enforceable agreement and terms of the loan agreement must comply with Internal Revenue Code (IRC Section 72(p)(2) and Treasury Regulation Section 1.72(p)-1).

When It Comes to Planning for Retirement, Participants Want to Hit the Easy Button

When It Comes to Planning for Retirement, Participants Want to Hit the Easy Button

Nearly three-fourths of participants under 30 think employers should provide access to financial professionals and coaching to help them. Even more telling, 62% wish they could push an “easy button” and completely turn over retirement planning to someone else. This figure is up from 55% in 2016.

Cybersecurity Best Practices for Plan Sponsors

Cybersecurity Best Practices for Plan Sponsors

Participant data and financial accounts comprise some of the most sensitive and potentially vulnerable information under a company’s care. These highly valuable assets can be an attractive target for cybercriminals and therefore present considerable security risk.

Should Fiduciaries Outsource Retirement Plan Investment Responsibility?

Should Fiduciaries Outsource Retirement Plan Investment Responsibility?

Fiduciaries are personally responsible for participant losses resulting from a fiduciary breach. Plan sponsor fiduciaries who handle plan investments themselves, or use advisors who do not assume fiduciary status, face potential exposure for both investment performance and all plan fees.

Are Your Participants Experiencing a Fee Imbalance?

Are Your Participants Experiencing a Fee Imbalance?

Fred Reish, a partner with Drinker Biddle in the Los Angeles office has weighed in on this issue by stating, “While there are no requirements to charge equitable fees, in Field Assistance Bulletin (FAB) 2003-03, the Department of Labor (DOL) indicated that allocating plan expenses is a fiduciary decision that requires fiduciaries to act prudently… Whatever allocation method is used, failure by fiduciaries to engage in a prudent process to consider an equitable method of allocation of plan costs and revenue sharing would be imprudent and a breach of fiduciary duty.”

Looking to Reduce Your Fiduciary Liability? Benchmark Your Retirement Plan.

Looking to Reduce Your Fiduciary Liability? Benchmark Your Retirement Plan.

As a Plan Sponsor, you have a duty to perform ongoing monitoring of your company’s retirement plan. Since ERISA is complicated, navigating this landscape is oftentimes confusing and challenging. You might be wondering, “What do I need to do to avoid fiduciary liability for my 401(k) plan?”