12.06.18

The Importance of Target Date Fund Oversight

Target date funds as a 401(k) Plan investment option have grown in popularity in recent years. Target date funds are mutual funds composed of a group of other mutual funds. These funds are often designed to initially invest fairly aggressively, and then gradually reallocate to become more conservative as it gets closer to that assumed retirement year— the target date. 

11.07.18

Finding the Retirement Plan Sweet Spot for Your Small Business

Small businesses have a lot of competing needs for their business resources. One of these resources is the use of their cash. No matter how much free cash flow you have, small businesses should consider using some or all of their free cash flow to contribute to a retirement plan.

10.25.18

Ready, Set and Coming Soon to Illinois: A Savings Program

Starting soon, perhaps, Illinois will launch their Secure Choice savings program for employers who currently do not offer a qualified retirement plan, such as a 401(k) plan, to their employees. This compulsory program applies to employers with 25 or more employees and businesses operating in Illinois for two years or more.

09.19.18

Reduce Plan Leakage by Upgrading Your 401(k) Loan Rules and Practices
Stephanie Zaleski-Braatz

If your retirement plan allows loans and/or hardship withdrawals, it may be leaking money. Plan leakage refers to participants allowing their account balances to shrink, because of either loans or hardship withdrawals. Plan loans do not always result in permanent leakage when they are repaid, but they still can have adverse long-term consequences for participants.

08.14.18

Identity Theft Puts Plan Participants and Sponsors at Risk
James Quaid

News of commercial database hackings involving personal information seems all too common. While many of these stories focus on bank and credit card accounts, many plan sponsors and participants do not realize that 401(k) plan assets may also be at risk.

07.25.18

Plan Documents: Be Proactive to Avoid Violations
James Pellino

Anyone administering a retirement plan quickly realizes that it can be a daunting task. A key requirement that many administrators inadvertently miss is operating the plan in accordance to the plan documents.

06.21.18

The Rise in Cash Balance Plans

Cash balance plans, a defined benefit plan that defines the benefit in terms that are more characteristic of a defined contribution plan, has grown in popularity in recent years.  According to the statistics per the most recent IRS Form 5500 filings, these hybrid plans have increased by approximately 17%, whereas traditional 401(k) plans increased by a more modest 3% over the same time period. 

05.07.18

DOL Increases Scrutiny of Defined Benefit Plans

Defined benefit (DB) plan sponsors might be facing tighter scrutiny from the U.S. Department of Labor (DOL). Last year the DOL’s Employee Benefits Security Administration (EBSA) ramped up pension audit operations in its Philadelphia office, and later decided to do so elsewhere, the agency announced at an ERISA Advisory Council meeting.

04.18.18

How to Handle Orphaned 401(k) Plan Accounts
Stephanie Zaleski-Braatz

It’s become common for 401(k) plans to include a significant number of orphan accounts due to employees changing jobs more frequently and much of the workforce hitting the retirement age. If your plan has a lot of them, it might be time to think about whether it’s time to actively pursue these accounts. The answer depends in part on how your plan charges administrative fees and the value of these orphaned 401(k) accounts.

03.20.18

Trivial Retirement Plan Changes from the Tax Cuts and Jobs Act, Right?

At first glance, the Tax Cut and Jobs Act (TCJA) did not change much regarding retirement plans. None of the rumored changes were included in the TCJA, such as the so-called “Rothification.”  Moreover, there were no changes to retirement plan limits or rules regarding contributions. Well admittedly, the TCJA did change a few things.