|
|
[Guidance Overview]
2018 Changes in IRS VCP User Fees: Winners and Losers
"It is easier to find losers than winners: [1] Small plans covering fewer than 101 participants paid $500 or $750 under the 2017 schedule and will now pay at least $1,500, or $3,000 if the plan assets are over $500,000, under the 2018 schedule. [2] Plans with minimum required distribution failures for 300 or fewer participants will pay at least twice as much as last year.... [3] Bargain user fees of $375, $500, or half the old generally applicable fee for nonamender submissions are a thing of the past."
Conduent
|
[Guidance Overview]
Interesting Angles on the DOL's Fiduciary Rule, Part 76
"BICE only applies to non-discretionary investment advice.... [If] the financial institution or its advisors have the responsibility or authority to make the decisions, or if they actually make the investment or transaction decisions, and there is a financial conflict of interest (that is, a prohibited transaction), BICE does not provide relief.... [Many RIAs] are not aware that, where they have financial conflicts (for example, 12b-1 fees or payments from custodians) for discretionary investment management for IRAs, there is usually not an exemption and the compensation is prohibited."
FredReish.com
|
How to Decide If the Outsourced Model Is Right for Your Plan (PDF)
"A discretionary manager should have the governance structure and processes in place to quickly and effectively capitalize on investment ideas.... In selecting an outsourced provider, asset owners have several factors to consider and no shortage of potential candidates. While a number of these factors are similar to those in selecting a traditional advisor, a discretionary relationship introduces a few unique considerations."
Segal Marco Advisors
|
|
|
|
|
Planning for Retirement: A Generational Perspective
"[T]he percentage of working-age households at risk of being unable to maintain their standard of living in retirement has improved -- from 52 percent to 50 percent -- mostly attributable to the last three years of strong stock market growth and rising home prices. When looking at the [National Retirement Risk Index] over the last thirty years however, the numbers show that achieving a secure retirement becomes more of a challenge with each generation."
Prudential
|
Are Profit Sharing Contributions Right for Your 401(k) Plan?
"Because profit sharing contributions are flexible, they can be a great choice if your company is a start-up, has erratic profitability, or acquires other companies frequently. If your company is more stable, these contributions can help you meet several 401(k) plan goals, including: [1] Increasing the contributions made to 401(k) participant accounts up to the legal limit ... [2] Giving low-earners a base retirement benefit. [3] Attracting top employee talent with a generous retirement benefit."
Employee Fiduciary
|
Frequently Asked Questions About 401(k) Plans: The Basics
"What is a 401(k) plan and how does it work? ... Are 403(b) and 457 plans similar to 401(k) plans? ... What are the benefits of investing in a 401(k) plan? What is an employer match? What is vesting? Is there a limit to how much an employee and employer can contribute to a 401(k) plan? What is a catch-up contribution and who is eligible? What happens if an employee or employer contributes more than the 401(k) plan limit? Can participants borrow from their 401(k) plan accounts? ... What happens if an employee can't repay a 401(k) loan? What are the disadvantages to a 401(k) loan? What are hardship withdrawals? What are the disadvantages of a hardship withdrawal? When can a participant begin drawing down a 401(k) plan? ... Why do required minimum distributions exist?"
Investment Company Institute [ICI]
|
The Effect of Recent Tax Law Changes on Transfers from IRAs to Charity
"Now that TCJA has substantially increased the standard deduction and has substantially slashed other individual taxpayer deductions, QCD's can be a much more beneficial means of making charitable gifts for the over age 70-1/2 taxpayer.... Generally, direct transfers from the older donor's IRA to the older donor's favorite public charities will be beneficial if the older donor has low or no mortgage interest and does not have medical expenses that substantially exceed the AGI threshold."
Bryan Cave
|
IRA Balances, Contributions, Withdrawals, and Asset Allocation Longitudinal Results 2010-2015 (PDF)
32 pages. "While the cross-sectional overall average balance increased 36.1 percent from 2010 to 2015, the increase for those IRA owners who continuously owned IRAs from 2010-2015 was 47.1 percent.... Roth IRA owners ages 25-29 were the most likely to contribute in any year at 64.1 percent, and Roth IRA owners ages 30-34 were most likely to contribute in all six years at 15.0 percent ... The overall average contribution increased each year through 2013 before a slight decline in 2014 and a small increase in 2015."
Employee Benefit Research Institute [EBRI]
|
[Opinion]
Joint Statement Opposing 'Composite' Pension Legislation
"The composite legislative proposal does not ensure that earned pensions will be fully paid in either existing multiemployer pension plans or in newly created plans. The composite proposals put benefits at risk, even in those multiemployer plans that are well-funded today.... [M]oney that would be needed for the new composite plans will be taken from money needed to fund existing plans -- likely leading to underfunding of both plans -- without adequate benefit protections."
AARP; Int'l Ass'n of Machinists and Aerospace Workers; Int'l Brotherhood of Boilermakers; Musicians for Pension Security; Nat'l United Comm. to Protect Pensions; Nat'l Retirees Legislative Network; Pension Rights Center; Others
|
|
Benefits in General
|
IRS Asking for Taxpayer Representatives' Personal Information
"Taxpayer representatives are now being asked for their Social Security number and date of birth, in addition to their Centralized Authorization File (CAF) number, so that IRS agents can verify their identity when they call the IRS. The new questions result from an updated version of Internal Revenue Manual (IRM) Section 21.1.3.3, which took effect Jan. 3.... Although the new IRM section is not yet available on the IRS's website, its existence has been verified by IRS personnel. The IRS says it plans to communicate the changes to practitioners in the near future."
Journal of Accountancy
|
Employees Want Financial Education About More Than Retirement Savings
"[E]mployees across the board say education on a variety of financial matters is needed, rather than just the limited amount of topics typically offered from employers. Some of these issues included how to obtain life insurance, with 81% of employees voting for more education compared to 68% of employers; and how to obtain disability insurance (84% of workers along with 71% of plan sponsors)."
PLANSPONSOR
|
|
|
|
Executive Compensation
and Nonqualified Plans
|
[Guidance Overview]
New 'Excess' Compensation Excise Tax for Tax Exempt Organizations
"[T]he excise tax only applies if the covered employee's total severance payments equal or exceed three times the employee's 'base amount.' ... For this purpose, the 'base amount' is the employee's average annual taxable compensation for the five years preceding his or her termination date ... [T]he excess severance payment excise tax can apply even if the individual's compensation for the year is less than $1 million."
Hunton & Williams LLP
|
|
Selected Discussions
on the BenefitsLink Message Boards
|
Defer Loan Repayment Starting Date for a Few Months?
Let's say loan is granted on January 15. But the (equal) payroll deduction repayments are not scheduled to begin until March 15. The repayment schedule would be 4 years (well under the 5 year limit). To me, this violates the "substantially level payments made at least quarterly" requirement of 72(p)(2)(C). During quarter 1 of the loan, the repayment is far less than during subsequent quarters. Agree?
BenefitsLink Message Boards
|
Earned Income from Separate Affiliates in Controlled Group
Plan document defines Earned Income as "net earnings from self-employment with respect to which the Plan is established, for which personal services of the individual are a material income producing factor." Plan is sponsored by ABC, LLC. Owner O owns 100% of ABC. O also owns 100% of XYZ, LLC. XYZ has no employees. O has net earnings from self-employment from XYZ that he would like to use to support his compensation in the plan. My question: Must XYZ adopt the plan as a participating employer in order for O to rely on the NESE from XYZ? Can't hurt, so why not?
BenefitsLink Message Boards
|
|
|
Follow ALL New Discussions:
► Subscribe (free) to the new, daily BenefitsLink Message Boards Digest (which contains ALL new discussions, not just the selected discussions shown above).
► See a sample issue.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BenefitsLink.com, Inc.
1298 Minnesota Avenue, Suite H
Winter Park, Florida 32789
(407) 644-4146
Lois Baker, J.D., President
David Rhett Baker, J.D., Editor and Publisher
Holly Horton, Business Manager
BenefitsLink Retirement Plans Newsletter, ISSN no. 1536-9587. Copyright 2018 BenefitsLink.com, Inc. All materials contained in this newsletter are protected by United States copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of BenefitsLink.com, Inc., or in the case of third party materials, the owner of those materials. You may not alter or remove any trademark, copyright or other notices from copies of the content.
Links to web sites other than BenefitsLink.com and EmployeeBenefitsJobs.com are offered as a service to our readers; we were not involved in their production and are not responsible for their content.
Unsubscribe |
Privacy Policy
|
Retirement Plan Consultant
