DATAIR Employee Benefit Systems, Inc.

Regional Sales Consultant
United Retirement Plan Consultants
in CO

Technical Product Director - Fixed/Stable Value
Nationwide
in OH

Defined Benefit Pensions Specialist
Nationwide Insurance
in OH

401(k) Daily Processor
Swerdlin & Company
in GA

ESOP Administrator
Swerdlin & Company
in ANY STATE, GA, MA

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Mutual Fund Compliance Summit and Investment Advisor Compliance Summit
July 15, 2015 in NY
(Financial Research Associates)

ERISA Litigation Update
July 23, 2015 in NY
(Worldwide Employee Benefits Network [WEB] - New York Chapter)

View All Webcasts and Conferences

[Guidance Overview]

Beneficiaries Need to Understand the 'Income in Respect of a Decedent' Deduction
"[T]he Internal Revenue Code allows for an 'Income in Respect of a Decedent' (IRD) deduction under Section 691(c). Claimed by the beneficiary of an inherited IRA to the extent of any estate taxes that were caused by the account, the deduction can be material -- as much as 40% of the value of the account! Yet despite its size, beneficiaries in practice often 'miss' the IRD deduction ... And notably, in the end the IRD deduction applies not only to inherited IRA accounts, but also other employer retirement plans, inherited non-qualified annuities, employer non-qualified stock options, deferred compensation, employer NUA stock, and more!" (Michael Kitces in Nerd's Eye View)  

[Advert.]

A Revolutionary New Resource.

ERISApedia.com is an Online Compliance Library with real-time updates. Our robust platform offers outstanding search tools and an intuitive interface. Quickly find answers to your ERISA questions. Free Trial - Sign up or email sales@ERISApedia.com.

[Guidance Overview]

IRS Explanation, Worksheet (Alert Guidelines), and Deficiency Checksheet: Section 401(h) and Section 420 Determination of Qualification (Rev. 4-2015) (PDF)
9 pages; this single PDF document includes Publication 11433, Form 13069, and Form 13070. Excerpt: "The purpose of Worksheet Number 13 (Form 13069) and this explanation is to identify major problems with respect to the requirements of Internal Revenue Code section 401(h) in plans with retiree medical benefit features and on plan provisions enabling the transfer of assets in a defined benefit plan to a health benefit account described in section 401(h), pursuant to section 420." (Internal Revenue Service [IRS])  

[Guidance Overview]

IRS Explanation, Worksheet (Alert Guidelines), and Deficiency Checksheet: Section 436 Limitations (Rev. 4-2015) (PDF)
14 pages; this single PDF document includes Publication 5139, Form 14582, and Form 14583. Excerpt: "The worksheet applies only to plans to which Internal Revenue Code section 436 applies, that is, single employer defined benefit plans (including multiple employer plans) that are subject to the minimum funding requirements of section 412. Thus, the worksheet does not apply to governmental plans and nonelecting church plans." (Internal Revenue Service [IRS])  

IRS Determination Letter Program to Be Curtailed
"The scaled-back program would shift the risk of a defective or missing provision to the plan sponsor -- and potentially to plan participants. This risk would accompany all provisions required or added after the IRS' initial determination letter. Such document-based claims might arise through an IRS audit or through a participant dispute about plan benefits. In an audit, the sponsor could face penalties as part of the correction process and might need to modify benefit amounts retroactively." (Towers Watson)  

Nondiscrimination Testing: Traps for the Unwary (PDF)
37 presentation slides. Topics include: [1] Components of Nondiscrimination Testing (NDT); [2] Common NDT Gotchas: Compensation; Frozen Benefits; Benefits, Rights or Features; and Tiered Contribution Formulas; [3] Safe Harbor Plan Designs; [4] Prior Year v. Current Year Testing; [5] Leased Employee Coverage Issues; and [6] Prototype v. Individually Designed Plans. (Wilkins Finston Friedman Law Group LLP)  

[Advert.]

Your input needed! GAO asking plan sponsors about 401(k) plan lifetime income options

This GAO survey asks about the advantages and disadvantages of these options, education about them, and barriers that might limit their adoption. GAO estimates the survey will take about 15-20 minutes to complete; responses will be accepted until July 24th.

DOL Secretary Signals Changes to Fiduciary Proposal
"The Labor Department is considering changing some aspects of exemptions in its proposed fiduciary standard expansion ... The department is focusing on additional data retention and point of sale disclosure requirements in the best interest contract exemption because of comments on the rule, Secretary Thomas E. Perez said[.]" (InsuranceNewsNet.com)  

Faulty Retirement Planning Advice to Cost Advisor and Firm $1.2 Million
"A FINRA arbitration panel sided with the client over the advisor's alleged misconduct ... According to ... an attorney representing [Cindy-Marie Rogers], [the advisor] advised Rogers, ... who was earning about $80,000 per year, on rolling over a $529,000 lump-sum pension payout plus an $85,000 401(k) plan into an IRA and buying a variable annuity. At age 49, Rogers took an early retirement after being advised ... that she could afford to do so, in part through a provision in the tax code that permitted early withdrawal from qualified retirement accounts under certain circumstances, [the attorney] says.... He says that Rogers soon discovered that the 7% withdrawal rates she needed to meet living expenses were depleting her savings and exceeded what was permitted under IRS rules, meaning she got hit with a steep tax bill." (On Wall Street)  

Prudent Target Date Fund Decisions for Fiduciaries (PDF)
"60% of new contributions to 401(k) plans will be invested in TDFs within a few years. In 2008, the typical 2010 fund -- a fund intended for someone about to retire -- lost 30% of its value because of a high allocation to equities.... The objective of a TDF is to preserve a participant's assets as retirement approaches, not to increase the account's value to make up for inadequate savings. Every TDF should have a statement of investment policy." (Ron Surz, in benefits Magazine, published by the International Foundation of Employee Benefit Plans [IFEBP])  

Why Asset Allocation Doesn't Matter in the Long Run
"It turns out an investor who does not rebalance will receive a higher return in all areas compared to an investor who rebalances. Needless to say, if rebalancing a stock/bond asset allocation mix doesn't beat the results of the static case, then it certainly won't beat the 100% stock mix. Again, in this variation of the long-term test, asset allocation fails. Why does rebalancing fail? It appears, because stocks routinely (and to a significantly higher degree) perform better than bonds. That means annual rebalancing has you selling stocks in more years than you're selling bonds." (Fiduciary News)  

[Advert.]

PSCA's 68th Annual National Conference, Oct. 14-16, Chicago, IL

Your DC plan is the first step in helping employees be prepared for retirement. Attend PSCA's National Conference and learn how to get your employees to financial wellness using the plan's design, investments, compliance and education. Register NOW!

Increasing HR's DOL-Audit Awareness
"When it comes to audits of organizations' employee benefit plans, a recent federal report shows there's much more work to be done, and experts say HR leaders can play a vital role in defending against threats to workers' nest eggs." (Human Resource Executive Online)  

Couples Study Uncovers Disconnects on Retirement Expectations, Social Security
"When asked how much they will need to save to maintain their current lifestyle in retirement, nearly half (48 percent) have 'no idea' -- and 47 percent are in disagreement about the amount needed. This level of disagreement is highest among those who are closest to retirement -- Baby Boomers (born 1946-64). 60 percent of couples and almost half (49 percent) of Boomers don't have any idea how much their Social Security benefit might be, even though the information is readily available on the Social Security website. Couples aren't on the same page when it comes to describing their expected lifestyle in retirement -- with one in three disagreeing about how comfortable that lifestyle will be." (Fidelity)  

Five Retirement Risks That Bite
"Your biggest financial risk is retiring at the end of a material down year -- 2008 was down 45%.... The scariest statistic of all is the 79% of investors who say they do not know if they selected competent, ethical financial advisors." (Paladin Research & Registry)  

Expensive Pensions Vex Law Firms as Ranks of Retired Partners Grow
"Despite the continued attention on public and private retirement plans, lucrative law firm pensions afforded to retired equity partners have largely been overlooked. But with annual benefits at a minimum of $250,000 per year, these plans face funding problems that affect benefit levels as well as impact on younger partners." (Bloomberg BNA)  

[Opinion]

The Behavioral Economic Case for Paternalistic Workplace Retirement Plans
"Dependence on 401(k) retirement accounts continues to cause a massive retirement crisis in the United States by leaving most workers unprepared for retirement. The voluntary, inaccessible, employer-centered, expensive, and consumer-driven nature of these plans has combined to make retirement a type of corporate-inspired elder abuse in America.... Behavioral economics considers the utility of permitting individual choice in decision-making settings.... [The author outlines] here a vision for the transformation of the American 401(k) retirement system into an efficient and sustainable superannuation model based on behavioral economic insights from the Australian workplace retirement system." (Paul M. Secunda via SSRN)  

Key Questions for Section 409A Compliance
"Section 409A imposes very specific constraints for structuring NQDC arrangements. The checklist [in this article] includes general requirements for Section 409A compliance. Failure to comply with Section 409A may subject the participant to current income tax on the amount purportedly deferred, plus interest and substantial additional taxes." (Fulcrum Partners)  

Dodd-Frank's Next Act: Compensation Disclosure
"Section 953(b), the other shoe waiting to drop, will arguably generate more headlines [than pay-for-performance], highlighting wage disparity by requiring the reporting of a ratio of CEO or 'principal executive officer' pay to that of his or her company's rank-and-file employees.... Depending on whom you ask, these new disclosures are either yet another unjustified incremental addition to a CFO's financial reporting workload or a valuable enhancement of transparency that will benefit investors." (CFO)  

Manning & Napier Launches Advisor Resources Focused on QDIA Due Diligence
Manning & Napier, Inc.

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