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Showing entries with the topic “Plan Design”.

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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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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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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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Jul 2018

Why Median > Average When it Comes to Retirement Plan Account Balances

In a recent article by Barry Ritholtz, he mentions a concept that should be drilled into every retirement plan sponsor’s head when they review their recordkeeper statistics as to the success of their retirement plan:  median is more significant than average. In the retirement plan’s “dashboa…

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May 2018

The Dirty Little Secret of Auto-Enrollment?

Generally, automatic enrollment has been a positive development for retirement plans, as it forces individuals who may not ordinarily save to do so at an important time - the commencement of their working careers. However, auto-enrollment is not a panacea. For example, it has negatively im…

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May 2018

Retirement Plan Account Balances: Big and Small

Advisors have a variety of tools at their disposal to determine the overall health of a plan sponsor’s retirement plan. However, there is a time-tested exercise that only takes about a minute to complete: review the current account balances of all the participants in the retirement plan and complete…

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