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Plan Sponsors Continuing to Improve Plan Designs, Study Says
An early preview of Vanguard’s How America Saves 2024 finds that plan sponsors are continuing to improve their plan designs. The report reveals that 60% of plans with an automatic enrollment design defaulted their employees into the plan at a rate of 4% or higher—which is a new record high and a trend that has continued to increase every year.... Read More >>
SECURE Distributions
Sponsored by: MFS Investment Management There are several optional provisions in SECURE 2.0 (and one in SECURE 1.0) which allow participants to take a plan distribution without a penalty under specific circumstances – in the event of a natural disaster, in the event of the birth or adoption of a dependent, for victims of domestic violence, or if... Read More >>
Employer Roth Contributions: Tips and Insights
It is now possible to offer plan participants in 401(k), 403(b), and 457(b) plans the option to treat employer contributions as Roth contributions, under the SECURE 2.0 Act. More precisely, it is Section 604 of the SECURE 2.0 Act that allows plan participants to elect to have any fully vested employer contributions funded to a defined... Read More >>
Action Steps an Employer Can Take to Support Gen Z in Saving
Editor’s Note: This is part II of a two-part series. Part I is available here. Generation Z is looking ahead and shows a healthy regard and respect for their financial future, long-term. Studies show that they have a strong interest in financial literacy, saving and employer-provided retirement benefits. Members of Gen Z also expect to spend 30... Read More >>
IRS Expects to Fix Glitch Affecting Form 8955 Refunds
The IRS has confirmed that they expect to fix a system-wide glitch that has resulted in improperly withheld refunds of erroneous penalties related to Form 8955-SSA filings. Kelsey Mayo, the American Retirement Association’s Director of Regulatory Policy, reports that some plan sponsors’ refunds have been improperly withheld, but that the IRS has... Read More >>
Communication Strategies to Tackle Common Participant Savings Barriers
How are you communicating your benefits to your employees? It is so important that we get information to our employees and provide them with the communication and education they deserve. Tackling communication in the right way has potential to enhance retention and recruitment strategies and will build stronger employee and employer relationships... Read More >>
DOL Sends Fiduciary Rule to Office of Management and Budget
The Office of Management and Budget (OMB) received the fiduciary rule, listed as Retirement Security Rule: Definition of an Investment Advice Fiduciary, from the Department of Labor (DOL) on March 8. The OMB will review its costs and benefits within 90 days. However, the compressed two-month period in which the DOL finalized the rule has industry... Read More >>
Aging Up RMDs
Sponsored by: MFS Investment Management A Required Minimum Distribution (RMD) age is the statutory maximum age at which participants must begin to take withdrawals from their 401(k) plan. Because the taxes are deferred until distribution, the government does not allow you to keep it there forever – they want their money at some point. A... Read More >>
Gen Z and Retirement Readiness: Room for Optimism
Editor’s Note: This is part I of a two-part series. It’s not unusual for older generations to look askance at their younger counterparts and dismiss them with a harumph at the thought that one day they will come to the fore. But plan sponsors may find it worth noting that some recent data suggests that in the case of the youngest demographic group... Read More >>
‘Positive’ Thinking: Why Small Businesses That Offer a 401(k) Do So
Recently, we explored the reasons why small businesses DON’T offer a retirement plan to their workers. But there are quite different—and positive—reasons for choosing to do so. The obstacles that keep most small businesses from offering a retirement plan to their workers are an assortment of factors, real and (somewhat) imagined. There ARE... Read More >>