North Carolina has nine DB plans with assets of $93 billion and three DC plans—a 457(b) plan with 53,080 participants and $1.3 billion in plan assets, a 401(k) plan with 247,114 participants and $9.2 billion in plan assets and a 403(b) with 1,186 participants and $11 million in plan assets. The State does not offer … More Above and Beyond: The Latest in Menu Innovations
Everyone has behavioral biases. Many people have a bias for the present over the future, for inattention and for heuristic thinking (stimulating interest as a means of furthering investigation). Retirement planning is complex with different designs offered— defined benefit (DB) versus defined contribution (DC) versus hybrid plans. Additionally, there are supplemental DC plans and pre-tax … More Lessons from Behavioral Economics for Public Pension Plans
Retirement can be the most wonderful time of your life, truly the golden years. It is up to you to do what you can to make it so. Enjoying good health in retirement is key to quality of life. The other major determiner of quality of life in retirement is financial security. Below are some … More Your Retirement Date
Subsequent to the 2012 implementation of ERISA fee reporting regulations (ERISA 408(b)(2) & 404(a)(5)), the Department of Labor (DOL) began to consider the appropriateness of the allocation of plan fees among participants. This is a subject that generally had not been on the radar screen of many plan fiduciaries, but once identified, tends to generate … More Are Your Participants Experiencing a Fee Imbalance?
When it comes to fiscally frugal health insurance options, health savings accounts (HSAs) aren’t exactly new to the game. They’ve been around since 2003 and have only increased in popularity among employers, politicians and certain types of employees. In recent years, however, the growth in popularity of HSAs is due less to the accounts’ function … More HSAs: A Tax Trifecta Investment Opportunity
Roth 401(k) Basics Elective deferral contributions to a traditional retirement plan are contributed on a pre-tax basis and help lower your current taxable income. Roth elective deferral contributions, however, are much like a Roth IRA in that contributions are made on an after-tax basis. Money in the Roth account and any earnings will be distributed … More What is Roth 401(k)? Is it Right for Me?
Last year, lawsuits were brought against the fiduciaries of the 403(b) plans of a number of major colleges and universities. Among the defendants were some of the country’s most prestigious institutions, including Columbia, Johns Hopkins and Vanderbilt. Very generally, these lawsuits allege that the 403(b) plans of these institutions are paying fees that are too … More A Victory for Plan Fiduciaries—Federal Court Dismisses Lawsuit against the University of Pennsylvania
There are some little known rules that come into play when rolling over an account from a 401(k) or a 403(b) plan to a Roth IRA. Contributions may be made on an after-tax basis to Roth accounts in both retirement plans and IRAs. Once the five-year holding period is satisfied for such accounts, all amounts … More Rolling Over a Plan Account to a Roth IRA—A Few Quirky Rules
The markets are focused on the progress tax reform bills are making on Capitol Hill. Most significant to the markets is the proposed reduction in corporate tax rates, as this would have a positive impact on corporate earnings. Some experts predict a comprehensive bill will pass before year-end. However, at this point, it is difficult … More Tax Reform Proposals and the Art of the Possible
A whistleblower complaint filed with the Securities and Exchange Commission alleges that Teachers’ Insurance and Annuity Association (TIAA) engages in aggressive sales practices designed to steer plan participants, at retirement, into its own high-fee managed account products. TIAA is one of the largest money managers with over a trillion dollars under management. It has long … More TIAA’s Public Image Takes a Hit