What documentation is required for retirement plan governance? BOARD RESOLUTIONS The vast majority of retirement plan documents provide rules regarding who is empowered to take action for a plan. The plan document names a plan administrator, a named fiduciary, and usually contains a section that explicitly describes responsibilities for each, when and how to delegate responsibilities, and perhaps even how a committee may be adopted. … Continue reading Retirement Plan Governance Summary
Target date funds (TDFs) are an integral part of many deferred compensation programs around the country. They offer many advantages, particularly for participants who are not inclined to actively engage in an investment strategy. One of the greatest advantages is that TDFs are designed to automatically rebalance as the participant gets closer to retirement. Many plan sponsors choose TDFs as the default investment option for … Continue reading Target Date Funds
In the past year, class action lawsuits have been ﬁled against the ﬁduciaries of the 403(b) plans of a number of major universities. One such action was ﬁled against NYU. The plaintiﬀs in this case recently amended their complaint to add Cammack LeRhette Advisors as a named defendant. Cammack has served as the advisor to the NYU plans since 2009. Very generally, the complaint alleges … Continue reading An Advisor is Named as a Defendant in NYU Lawsuit
After many delays, some parts of the Department of Labor’s new Fiduciary Rule are once again on hold, this time for 18 months until the middle of 2019. The essence of the Fiduciary Rule is that any person making investment recommendations to plans, their participants or IRA holders, is acting as a ﬁduciary and may only make recommendations that are in the best interests of … Continue reading The Ongoing Saga of DOL’s Fiduciary Rule / Changes in the Offing
President Trump signed the tax bill into law on December 22nd of last year, just under the wire of his self-imposed deadline of Christmas. The bill was originally known simply as the “Tax Cuts and Jobs Act,” but under an arcane Senate rule, this name was too short so it is formally titled “To Provide Reconciliation Pursuant to Titles II and V of the Current … Continue reading Tax Reform – Retirement Plans Left Largely Unscathed
You may be eligible for a valuable incentive, which could reduce your federal income tax liability, for contributing to your company’s 401(k) or 403(b) plan. If you qualify, you may receive a Tax Saver’s Credit of up to $1,000 ($2,000 for married couples filing jointly) if you made eligible contributions to an employer sponsored retirement savings plan. The deduction is claimed in the form of … Continue reading Tax Savers Credit Reminder
Answers from a recovering former practicing ERISA attorney Do you have a question for an ERISA attorney burning in your heart? Well, you’re not the only one! Welcome to our new Retirement Times feature, Hey Joel! We’re featuring plan sponsor questions from all over the country and answers from our in-house former practicing ERISA attorney. Do we need to adopt a loan policy? – Confused … Continue reading Hey Joel!
The duty to provide participants with sufficient information to make consistently informed retirement investment decisions is a basic fiduciary responsibility under ERISA Section 404(a). However, there could be some plan committees who feel their participants are not consistently making prudent decisions. According to a recent JP Morgan survey¹ nearly 75 percent of participants say they are not confident with selecting investments. It is no surprise … Continue reading Is it Time for a Plan Refresh?
In our research, late deposit of contributions is a frequent error made by plan sponsors and is a key priority of the Department of Labor (DOL). In every plan audit conducted by the DOL, the investigator looks to see if contributions have been deposited in a timely manner. A number of years ago, the DOL revised the instructions to Form 5500 requiring plan auditors to … Continue reading What Happens When You Deposit Employee Deferrals Late?