Participant Corner: Tax Saver’s Credit Reminder

This month’s employee memo informs employees about a valuable incentive which could reduce their federal income tax liability. Download the memo from your Fiduciary Briefcase at fiduciarybriefcase.com. 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, … Continue reading Participant Corner: Tax Saver’s Credit Reminder

QDIA…. Why is it important?

The qualified default investment alternative (“QDIA”) is arguably the most important investment in a plan’s investment menu. By far the most often selected QDIA investment is a target date fund (“TDF”). TDFs are typically the only investment selection that offers unitized professionally managed portfolios that reflect the participants’ time horizon today and as they go … Continue reading QDIA…. Why is it important?

The Case for Investment Refresh

Investment refresh is an optional extension to automatic enrollment whereby participants would be notified that, as of a certain date, their current investment allocation will be transferred to the plan’s qualified default investment alternative (“QDIA”) investment. The QDIA is frequently an age/risk appropriate target date fund (“TDF”). Any participant may opt out of this action … Continue reading The Case for Investment Refresh

Private Equity Investments in Defined Contribution (DC) Plans

Private equity funds invest in privately held companies whose stock is not traded on public exchanges. Private equity fund managers expect to increase the value of their investments by providing capital and acumen for the purpose of improving performance/value of these companies. The Department of Labor (DOL) recently released an “information letter” regarding the potential … Continue reading Private Equity Investments in Defined Contribution (DC) Plans

Continuity, Coronavirus, ERISA, Stimulus Package

The coronavirus relief includes a “temporary rule preventing partial plan terminations” for plan sponsors of defined contribution retirement plans. The provision specifically states, “A plan shall not be treated as having a partial termination (within the meaning of 4119(d)(3) of the Internal Revenue Code of 1986) during any plan year which includes the period beginning … Continue reading Continuity, Coronavirus, ERISA, Stimulus Package

Should You Adopt a Plan Committee Charter?

Yes! The primary purpose of a committee charter is to document overall plan governance. It is not dissimilar to how your Investment Policy Statement (IPS) acts as a “roadmap” for managing your plan investments. The charter also documents delegation of fiduciary responsibilities from the plan’s “named fiduciary” to co-fiduciaries. Even small plans with a single … Continue reading Should You Adopt a Plan Committee Charter?