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Emergency Savings Provisions
Sponsored by: MFS Investment Management The SECURE 2.0 Act included two provisions geared towards helping employees handle financial emergencies. One provision is a penalty-free distribution of $1,000 per year from the 401(k) account and the other is the PLESA (Pension Linked Emergency Savings Account). We first asked sponsors about their... Read More >>
Survey Stakes Out New Grounds in 401(k) Fee Benchmarking
A new report offers a new level of transparency on recordkeeping fees paid by the large plan targets of excessive fee suits—and calls out a number of misleading claims and benchmarks used by the plaintiffs’ bar in bringing those suits. According to the announcement from Encore Fiduciary, formerly known as Euclid Fiduciary, a division of Specialty... Read More >>
ARA Urges IRS to Revise Proposed Long-Term, Part-Time Guidance
The American Retirement Association (ARA) is calling on the IRS to revise several provisions contained in the proposed long-term, part-time employee (LTPTE) rules for 401(k) plans. Chief among the ARA’s recommendations is for the IRS to revise the proposed rule regarding vesting service to confirm with congressional intent and to provide relief... Read More >>
Hungry to Recruit for ‘Burrito Season,’ Chipotle Offers New Benefits
High employee turnover in the service industries—particularly food service—traditionally made it difficult to offer 401(k)s to employees, something SECURE 2.0 is looking to change. The student loan match program and financial wellness initiatives are generally receiving a lot of attention, mainly due to the former’s introduction in 2024, which is... Read More >>
Is it (Finally) Finally Time?
Two headlines caught my eye recently—provocative “what if”-type questions. I’m talking about “Will Retirement Income Solutions Finally Break Through in 2024?” and “Will Managed Accounts (Finally) Take Hold as QDIAs?” Both, of course, included the word “finally” in the title(s)—no doubt because the underlying premise has been touted in previous... Read More >>
Projected Retirement
Sponsored by: MFS Investment Management One of the SECURE Act of 2019 provisions requires plan sponsors to provide a lifetime income projection to participants at least once a year. The purpose of this provision is to help participants have a better understanding of what their current retirement accounts will provide in terms of income in... Read More >>
HSAs for All?
The pros and cons of universal availability of health savings accounts (HSAs). There has been extensive debate about HSAs focusing on access, utilization, and more specifically if they should be accessible beyond high deductible health plans (HDHPs), which is a current requirement. Several organizations have promoted for HSA universal access. “... Read More >>
DOL Finalizes New PTE Filing and Processing Procedures
Employer plan sponsors and fiduciaries that are subject to the prohibited transaction rules as set forth in ERISA and the Internal Revenue Code (IRC) will want to take note of new procedures for granting administrative transaction exemptions. The Department of Labor’s Employee Benefits Security Administration (EBSA) on Jan. 23 announced that it... Read More >>
New DOL Guidance Sheds Light on SECURE 2.0 Emergency Savings Accounts
On the heels of the recent IRS guidance on pension-linked emergency savings accounts (PLESAs), the Department of Labor’s (DOL) Employee Benefits Security Administration (EBSA) followed suit on Jan. 17, issuing additional guidance in the form of FAQs. Included in Section 127 of the SECURE 2.0 Act of 2022, PLESAs are essentially short-term Roth... Read More >>
Plan Sponsors Expanding Their Efforts
Participants’ retirement security remains the priority of plan sponsors—and they are boosting their work to enhance it, says a recent report. JP Morgan, in its fifth Defined Contribution Plan Sponsor Survey, which provides the results of an online survey of 788 sponsors of 401(k) and 403(b) plans during the period Jan. 9-Feb. 28, 2023, looks at... Read More >>