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Retirement Plans Newsletter

July 19, 2022

7 New Job Opportunities 7 New Job Opportunities


[Guidance Overview]

IRS Introduces 90-Day Audit Program

"The new program gives plan sponsors a 90-day 'heads up' that the IRS intends to examine their retirement plan.... Those who have been through a plan compliance correction know that 90 days is not a lot of time to design and execute a correction procedure -- and with the IRS pilot program, much of that time may be spent reviewing plan documents and operations. It's not clear whether an extension of time to complete the correction is available under the pilot program."  MORE >>


[Guidance Overview]

IRS Offers Novel Retirement Plan Correction Opportunity

"Like all pilot programs, the IRS will evaluate the program's effectiveness and determine whether it will be a permanent fixture of its compliance strategy. So is this new pre-examination compliance program a good thing or a bad thing for plan sponsors? Will the IRS use this to expand its audit abilities by having plan sponsors do its work for them, or will the program end up reducing the odds of a plan being subject to a full scope audit that could drag on for months or longer?"  MORE >>


Plan Sponsor Selection of Target Date Glide Path May Not Always Consider Participants' Behavior or Needs

21 pages. "[M]ost plans offer TDFs designed for participants staying in the retirement plan through their retirement even in cases when a plan's participants are more likely than average to roll their money out of their plans. This mismatch is important because these 'through' glide paths typically take on more risk than 'to' retirement glide paths, leaving participants with more equity exposure than they would have if their glide path accounted for their propensity to take money out of the plan at retirement or separation from employment."  MORE >>

Morningstar; free registration required

The 2022 BlackRock Read on Retirement

"Retirement confidence is down, with fewer workplace savers seeing themselves as on track for retirement. It's a reversal from the last few years where confidence remained steady and even increased, likely given strong market performance, despite the pandemic and the initial impact it had on workers.... [W]hile a majority of workplace savers are unsure about the economic impact it may have, they are adjusting their saving and spending in response."  MORE >>


7 in 10 U.S. Employees Not Saving Enough for Retirement

"[T]he top three reasons employees cited for not saving more for retirement were paying off debts (36%); saving money for other reasons, such as holidays, purchasing a car or paying for education (28%); and not being able to afford to save more (27%). Over half of respondents (52%) are facing key risks to their retirement security. Those risks include saving less than 5% of salary and wanting to save more, borrowing from their 401(k) plan and withdrawing funds from their retirement plans."  MORE >>

Willis Towers Watson

Engaging Participants in the Retirement Tier (PDF)

"By 2030, all Baby Boomers -- an estimated 73 million people -- will be age 65 or older ... That means defined contribution plans could find themselves with more retirees and non-working participants than active employees.... This paper provides a high-level framework that plan sponsors can use when introducing retirement tier solutions to nearly retired and retired participants to help them manage their assets throughout retirement."  MORE >>

Defined Contribution Institutional Investment Association [DCIIA]

IRAs: Important Facts (PDF)

24 pages. "[1] IRAs are the largest pool of assets in the US retirement market.... [2] Equity holdings figure prominently in traditional IRA investments.... [3] Although few traditional IRA investors make contributions, those who do display persistence.... [4] A large majority of individuals consult a financial professional when rolling over assets to a traditional IRA from a former employer's retirement plan.... [5] IRA withdrawals are infrequent and mostly retirement related, and most households consult a financial professional when taking withdrawals."  MORE >>

Investment Company Institute [ICI]

Roth IRAs: Important Facts (PDF)

24 pages. "[1] More than one-third of IRA investors have Roth IRAs.... [2] One-third of Roth IRA investors are younger than 40.... [3] Roth IRA rollover activity is rare.... [4] Equity holdings figure prominently in Roth IRA investments.... [5] Most Roth IRA owners consult a financial professional when creating a retirement strategy.... [6] Few Roth IRA investors take withdrawals."  MORE >>

Investment Company Institute [ICI]

403(b) and Lifetime Income

"Guaranteed lifetime payouts from 403(b) annuity contracts are still alive and well, particularly in the higher education market which is still dominated by TIAA and its insurance products. However, with the the now-decade-long-shift in the 403(b) market to the mutual fund based group custodial arrangements designed to mimic 401(k), where do those new lifetime income programs fit?"  MORE >>

Business of Benefits

Recent Trends in the Average Retirement Age

"After a century of decline, work activity among older men stabilized in the 1980s and began to rise in the 1990s. This turnaround reflected changes in Social Security, retirement plans, the nature of work, education levels, and health coverage. In response, the average retirement age for men has risen by about three years.... [B]oth labor force participation and the average retirement age remain below their levels in the 1960s. And the factors fueling recent gains may have run their course, providing little basis for policy changes like raising the Medicare eligibility age."  MORE >>

Center for Retirement Research at Boston College


New Jersey's Bad 403(b) Bill

"[A] new bill in New Jersey would require all school districts with more than 1,000 students to have at least three 403(b) 'financial institutions or pension management organizations.' ... It's an understatement to call this an awful bill.... Promoters have said the bill will ensure quality pricing but nowhere in the proposed legislation does it specify this must happen."  MORE >>



Should 401(k) Plan Sponsors Help Retirees Fight Inflation?

"For retirement plan sponsors, the specter of fiduciary liability dangles over them when it comes to the assets of former employees, retired or not. When these ex-employees come calling, what are the risks to the employer should they attempt to answer the question.... Retirees need to face the reality that the handling of their retirement financials has entered a new phase. They are no longer dependents of the company they used to work for."  MORE >>

Fiduciary News; free registration required

Employee Benefits Jobs

View job as Retirement Plan Manager
          for Fiduciary Consulting Group Retirement Plan Manager

Fiduciary Consulting Group

Remote / Murfreesboro TN

View job as Retirement Plan Manager
          for Fiduciary Consulting Group

View job as Cash Balance and 401(k) Retirement Account Administrator
          for Alerus Cash Balance and 401(k) Retirement Account Administrator



View job as Cash Balance and 401(k) Retirement Account Administrator
          for Alerus

View job as Director of Operations
          for SetAway, LLC Director of Operations

SetAway, LLC

Remote / MA / ME / NH / VT

View job as Director of Operations
          for SetAway, LLC

View job as Internal Business Development Consultant
          for SetAway LLC Internal Business Development Consultant

SetAway LLC

Remote / MA / ME / NH / VT

View job as Internal Business Development Consultant
          for SetAway LLC

View job as Relationship Management Director
          for MissionSquare Retirement Relationship Management Director

MissionSquare Retirement

Remote / FL

View job as Relationship Management Director
          for MissionSquare Retirement

View job as Retirement Plan Consultant
          for APB Retirement Retirement Plan Consultant

APB Retirement

Remote / Wexford PA

View job as Retirement Plan Consultant
          for APB Retirement

View job as Plan Implementation Consultant
          for APB Retirement Plan Implementation Consultant

APB Retirement

Remote / Wexford PA

View job as Plan Implementation Consultant
          for APB Retirement

Selected New Discussions

Divorced Spouse Not Removed as Designated Beneficiary

"Divorced plan participant dies. QDRO money was allocated to the ex-wife a few months ago. Plan participant died last week. His designated beneficiary is still the ex-wife. No updated beneficiary form had been completed. She's entitled to his 401k, correct? His contingent beneficiaries are his 2 sons."

BenefitsLink Message Boards

Compensation Paid in Advance

"I have a situation where a division of my company is proposing to pay an employee in 2022 for services rendered for the period 9/2022 through 6/2023. I recall there is some specific reason why qualified plans cannot consider accelerated compensation when determining compensation. We have a money purchase and a 401(k) plan. Can anyone point me to a cite?"

BenefitsLink Message Boards

Age/Service Exclusions in Pre-Approved Governmental Plan

"The FIS Relius pre-approved governmental 401(a) DC plan document includes the standard override when excluding temporary and part-time employees such that, if an employee in this group actually works 1,000 hours in a year, they become eligible despite being in a category of temporary or part-time employee. The only source of this rule that I'm aware of is found in 410(a). Under 410(c), governmental plans are exempt from 'this section,' i.e., all of section 410, including section 410(a), not just 410(b) minimum coverage requirements. Is there some other rule that would require including this override in a governmental plan?"

BenefitsLink Message Boards

Press Releases

401k Best Practices Relaunches 401k Business in a Box with New Access Options

Morgan Health Announces New Investment in Centivo

Morgan Health

Securian Financial’s Online Enrollment Process for Workplace Retirement Plans Again Earns Top Ranking in DALBAR Study

Securian Financial Group

Edelman Financial Engines Launches New Workplace Financial Wellness Platform

Edelman Financial Engines

New Study Shows Modern Trading Technology Allows Workers to Retire Two Years Sooner

Modern Markets Initiative

Webcasts and Conferences
(Retirement Plans / Executive Compensation)

ESG and ERISA: Holy or Unholy Alliance?


Miller Johnson

Cash Balance Plans: What Everyone Needs to Know

August 16, 2022 WEBCAST

Last Issue's Most Popular Items

Another Cybertheft Lawsuit Spotlights 401(k) Recordkeeper Procedures

Cohen & Buckmann, P.C.

DOL Sues Administrator of Multiple Employer Plan

PLANSPONSOR; free registration may be required

Planning to Retire Soon? Follow This Checklist to Prepare


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

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