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Showing entries with the topic “Plan Design”.

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18

Apr 2019

Why Auto-Enrollment is Always a Good Idea

Auto-enrollment has seen increasing adoption among plan sponsors of retirement plans. And for good reason: It is hard to find a reason why auto-enrollment is a bad idea! Yet, there have been some concerns. Some plan sponsors worry about the disruption auto-enrollment may cause employees. Since empl…

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21

Feb 2019

Beware of these Heavily-Marketed Recordkeeper Products

I often have retirement plan sponsors ask me, “What is your opinion of Product X?” More often than not, it is a product that has been aggressively promoted by their retirement plan recordkeeper. Now, to be fair to retirement plan recordkeepers, with lower fees and declining margins, they are in an i…

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24

Jan 2019

You Have a Retirement Plan Committee - But Do You Have a Committee Charter?

Retirement plan committees (which are sometimes broken down into separate committees such as an investment committee and/or an administrative committee) serve an important function to ensure that the plan fiduciaries fulfill their responsibilities. While most plan sponsors utilize these committees,…

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06

Dec 2018

The Proposed Hardship Distribution Regulations: Some Misconceptions

The proposed hardship regulations were issued less than a month ago, but there already appears to be a lot of misunderstanding among plan sponsors and those who work with them. Based on the numerous questions we’ve received these past few weeks, it appears that the biggest misconceptions are as fol…

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29

Nov 2018

Why Now Might Be the Time to Eliminate a Hardship Distribution Provision

In my experience, most of the retirement plans that are eligible to maintain a hardship distribution provision (defined benefit and money purchase plans cannot, and 457(b) plans can only permit distributions for unforeseeable emergencies, which are a different animal entirely) do indeed allow funds …

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02

Aug 2018

Making Sense of Auto-Enrollment Rules

While the IRS means well, when reviewing some of the regulations, I cannot help but wonder if someone was thinking, “How can I make this as difficult to understand as possible?” Such is the case with automatic enrollment. To start, the IRS doesn’t call it auto-enrollment, they refer to it as an “au…

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