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Retirement Plans Newsletter

May 9, 2022

10 New Job Opportunities 10 New Job Opportunities

 

[Guidance Overview]

Understanding the 403(b) Special 15-Year Catch-Up Contribution

"[T]he additional contribution is permitted if it brings the cumulative participant contributions closer to an average of $5,000 per year. Determining how many years of service with a single employer could be complicated when a participant does not work full-time, works only a partial year, or works at different schools within a public school district or different hospitals within a system."  MORE >>

Belfint Lyons Shuman

[Sponsor]

Master the Rules for Short & Off-Calendar Year Plans!

Don’t be caught unaware by the administrative challenges that occur when working with short and off-calendar year plans! Learn what you need to know to administer off-calendar plans and plans with short plan years. Register Now!

Sponsored by ASC

Insights from the First 25 Excessive Fee and Investment Imprudence Cases of 2022

"[1] The frequency is high -- comparable to the record 2020 rate, with 60% of cases filed by the Capozzi Adler law firm.... [2] The motion to dismiss defense tactic is DOA as the pleadings standard is diluted.... [3] Most cases are settled and not litigated to conclusion, with settlements averaging 30-40% of the alleged damages model.... [4] Plaintiffs are alleging imprudence of isolated investments, even when the overall fees of the plan are low and contain low-cost index funds.... [5] One out of every three cases is against active target-date funds in the allegedly wrong share class, with Fidelity Freedom funds under attack.... [6] Nearly every case alleges excessive recordkeeping fees based on misleading and inappropriate benchmarks."  MORE >>

Euclid Specialty Managers

Data Breach Class Action Lawsuit Targets Retirement Plan Consulting Firm

"A consulting firm's data breach has triggered a second class action lawsuit by an affected participant on behalf of a class of some 2,500,000 individuals." [Torrano v. Horizon Actuarial Services LLC, No. 22-1674 (N.D. Ga. complaint filed Apr. 28, 2022)]  MORE >>

American Retirement Association [ARA]

Another Crypto Issue: Is There Really Much Demand?

"Prior to Fidelity's announcement, the Plan Sponsor Council of America found little interest based on a snapshot survey of 63 DC executives published a week after the DOL issued its March 10 guidance  ... A week before the DOL issued its guidance, the National Association of Plan Advisors announced the results of a reader poll in which 88% of the 223 respondents said recommending cryptocurrency as a stand-alone investment option was 'not on my "to do" list.' "  MORE >>

Pensions & Investments

Roth 401(k) vs. Roth IRA

"Anyone can contribute to a Roth 401(k), if available, regardless of income level.... [O]nly individuals earning less than $144,000 in 2022 -- $214,000 for married couples -- can contribute to a Roth IRA.... In 2022, you can stash away up to $20,500 in a Roth 401(k) ... Roth IRA contributions, by comparison, are capped at $6,000 ... One potential disadvantage of using a Roth 401(k) -- at least relative to a Roth IRA -- is that you'll have to take IRS-mandated required minimum distributions (RMDs) starting at age 72."  MORE >>

Charles Schwab

[Opinion]

Senator Warren Taken to Task for 'Misplaced,' 'Misinformed' and Ultimately Toothless Letter to Fidelity about Bitcoin-Inclusive 401(k) Menus

"The letter, penned by [U.S. Sen. Elizabeth Warren (D-Mass.)] and U.S. Sen. Tina Smith (D-Minn.), questions what risk Fidelity attaches to Bitcoin that it offers to its customers and how Fidelity plans to address those risks.... 'The letter itself is highly misinformed and misleading,' says Louis Harvey, president and CEO of Dalbar Inc. 'The inclusion of an asset class is not dangerous unless the allocation of an investor's assets in that class is excessive.' "  MORE >>

RIABiz

Employee Benefits Jobs

View job as Retirement Program Specialist
          for Orange County Employees Retirement System Retirement Program Specialist

Orange County Employees Retirement System

Santa Ana CA

View job as Retirement Program Specialist
          for Orange County Employees Retirement System

View job as Retirement Plan Administrator
          for Retirement Solutions Specialists, LLC Retirement Plan Administrator

Retirement Solutions Specialists, LLC

Remote / Jacksonville FL

View job as Retirement Plan Administrator
          for Retirement Solutions Specialists, LLC

View job as Relationship Manager, Retirement
          for National Benefit Services, LLC Relationship Manager, Retirement

National Benefit Services, LLC

Remote / West Jordan UT

View job as Relationship Manager, Retirement
          for National Benefit Services, LLC

View job as Policy Researcher, Analyst, and Writer
          for Policy Futures Network Policy Researcher, Analyst, and Writer

Policy Futures Network

Remote / Washington DC

View job as Lead Plan Administrator
          for BlueStar Retirement Services Inc. Lead Plan Administrator

BlueStar Retirement Services Inc.

Remote / Ponte Vedra Beach FL

View job as Lead Plan Administrator
          for BlueStar Retirement Services Inc.

View job as Plan Change Consultant
          for The Standard Plan Change Consultant

The Standard

Remote

View job as Plan Change Consultant
          for The Standard

View job as Pension Compliance Administrator
          for Associated Pension Consultants Pension Compliance Administrator

Associated Pension Consultants

Remote

View job as Pension Compliance Administrator
          for Associated Pension Consultants

View job as Defined Benefits Administrator
          for California Benefit Planners Defined Benefits Administrator

California Benefit Planners

Pasadena CA

View job as ESOP Administrator
          for Blue Ridge ESOP Associates ESOP Administrator

Blue Ridge ESOP Associates

Remote

View job as ESOP Administrator
          for Blue Ridge ESOP Associates

View job as Internal Accounting Specialist
          for July Business Services Internal Accounting Specialist

July Business Services

Remote / Woodway TX

View job as Internal Accounting Specialist
          for July Business Services

Selected New Discussions

Can Small TPA Firms Succeed by Marketing PEPs? Join/Form an Alliance?

"My TPA firm is very small and 99% of our clients have less than 100 participants. Most have less than 40. I'm concerned that as time goes on, PEPs become more popular and my business is threatened. Is there an option for a small TPA firm to market PEPs? Can I join forces with a company that sponsors a PEP while I maintain TPA and consulting services for my clients?"

BenefitsLink Message Boards

Quarterly Vesting Schedule?

"A client is instituting a match for the first time. They requested the plan implement a quarterly vesting schedule. I have never heard of quarterly vesting. Has anyone here heard of this before?"

BenefitsLink Message Boards

Participant with 75% J&S Benefit in Pay Status; Then Participant and Spouse Divorce

"Participant elected 75% J&S and started receiving pension benefit. Then she and her spouse divorce. Divorce decree says the ex-spouse is not entitled to any pension benefit the participant may have. Despite divorce decree, isn't ex-spouse still entitled to the benefit if the participant dies before the ex-spouse?"

BenefitsLink Message Boards

Press Releases

Attorney Alice Chih-Mei Chen joins The Wagner Law Group

The Wagner Law Group P.C.

Last Issue's Most Popular Items

Employee Benefit Plan Amendments and Disclosures Required This Year

Smith & Downey, P.A.

Roth IRA vs. Designated Roth 401(k) -- What's the Difference?

The Retirement Advantage

The Dramatic Rise in 401(k) Plan Excessive Fee Litigation, and Who's Fighting It

401(k) Specialist

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BenefitsLink Retirement Plans Newsletter, ISSN no. 1536-9587.

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