U.S. equity markets advanced 7.1% (Russell 3000) on solid earnings, economic growth and a tightening labor market. With continuing trade tensions, international equities increased at a slower pace than domestic equities, posting a 0.7% gain over the quarter (MSCI ACWI ex U.S.). The U.S. fixed income market was flat for the quarter (Bloomberg Barclays Aggregate) … More Q3 Market Review
Welcome to Hey Joel! This forum answers plan sponsor questions from all over the country by our in-house former practicing ERISA attorney. Hey Joel, My prospect is a 501(c)(3) organization that is not affiliated with a church or school. Are they eligible for a 401(k) plan? Are there any benefits over a 403(b) plan? – … More Hey Joel! My Prospect is a 501(c)(3) Org. Are They Eligible for a 401(k) Plan?
The Form 5500 is an ERISA requirement for retirement plans to report and disclose operating procedures. Advisors use this to confirm that plans are managed according to ERISA standards. The form also allows individuals access to information, protecting the rights and benefits of the plan participants and beneficiaries covered under the plan. Make sure you … More Beware of the IRS and DOL: Four Red Flags They Seek on Form 5500
As you read your plan’s lineup, you see the following scores: Large Cap Fund – 9 – Great! Small Cap Fund – 8 – Good! International Fund – 10 – Perfect! Fixed Income Fund – 10 – Perfect! Stable Value – — – Hmm…what does that mean? Periodically you review your plan’s fund lineup; you … More How Do You Monitor a Dash? Evaluating Stable Value Funds
We previously have reported on the evolution of the Department of Labor’s (DOL) Fiduciary Rule, widely considered among the most important consumer protection changes in recent history. In March, the Fifth Circuit Court of Appeals ruled 2-1 that the DOL had exceeded its authority when issuing the fiduciary regulations, which stopped the rules protecting an … More NAGDCA Weighs in on Securities and Exchange Commission’s Proposed Fiduciary Rules
The Tax Cuts & Jobs Act, passed in December 2017, and while some changes to defined contribution plans were discussed, none were included upon passage. In mid-September, the House Ways and Means Committee voted to forward the first major overhaul of the Tax Cuts Act – HR 6757, “The Family Savings Act of 2018” – … More News is Slowly Emerging From Capitol Hill
The IRS recently issued a private letter ruling (PLR) addressing a plan sponsor’s desire to amend their retirement plan to include a program for employees making student loan repayments (SLR). The ruling would allow plan sponsors to provide employees with matching contributions to their retirement plan, essentially offsetting SLRs. The PLR states that the program … More Student Loan Repayment Programs
One of the principles of fiduciary duty is to provide your employees and participants with a variety of educational opportunities so they can position themselves to make informed investment decisions. It’s not always easy to know what your participants need, want or will take advantage of. Using a simple framework for your educational program may … More Developing an Effective Employee Education Program
Hey Joel, I volunteer on the Board of Directors, so I don’t have liability, right? ~ Can’t Touch This in Colorado Dear Can’t, Liability is a complicated topic. If the plan is an ERISA plan, then state law is immaterial. Compensation has zero impact on whether an individual is a fiduciary. It is role and … More Hey Joel! – I volunteer on the Board of Directors, so I don’t have liability, right?