Top of Mind


21

May 2020

The COVID-19 Pandemic Sheds Light on Questionable Retirement Plan Features

With many optional plan features, plan sponsors have a great deal of choice when it comes to designing their retirement plan: make the right choice and the plan is attractive to participants without being too difficult to administer; make the wrong choice and it may lead to the opposite situation. …

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14

May 2020

Is Now the Time for a Roth Conversion?

Allowed by some retirement plans, a Roth conversion permits the transfer of pre-tax dollars to Roth, with income taxes paid on the transferred amount, instead of upon the distribution of the pre-tax funds. (once certain qualifications are met, Roth balances are not taxed at all upon distribution). …

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07

May 2020

Tips to Avoid Taking that Retirement Plan Withdrawal

In a recent Top of Mind, we discussed how accessing retirement plan funds during the COVID-19 pandemic is not the greatest idea. But how can employees avoid a withdrawal or loan when they really need the money? Here are a few tips to help individuals achieve better financial footing without raiding …

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30

Apr 2020

CARES Act Myths

More than one month has passed since the enactment of the CARES Act, yet there are still many widely held misconceptions about the retirement plan-related provisions. In this week’s Top of Mind, we attempt to dispel some of those myths. Myth # 1: Anyone can take advantage of the new CARES Act loan …

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23

Apr 2020

CARES Act Loan Provision: The "Fly in the Ointment"

In a recent Top of Mind post, we discussed why plan sponsors should be wary of blindly adopting all of the CARES Act loan and distributions provisions. Well, it turns out that there is quirk in the CARES Act provisions regarding COVID-19 loans that is giving plan sponsors a reason to pause. This is…

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16

Apr 2020

CARES Act Q&A

Having just finished reading an epic piece (30 pages!) from S. Derrin Watson on the CARES Act retirement plan and related provisions, I thought a CARES Act Q&A on the top the five questions that appear to be tripping people up the most might be in order. The answers are based on the collective wisdo…

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09

Apr 2020

Before You Adopt Those COVID-19 Loan and Distribution Provisions…

The new CARES Act retirement plan distribution and loan provisions for participants affected by the COVID-19 pandemic are apparently quite popular with retirement plan recordkeepers, so much so that at least one large recordkeeper told their plan sponsors that they had just five days to opt out, or …

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02

Apr 2020

Before You Take that Retirement Plan Withdrawal…

The Coronavirus Aid, Relief and Economic Security Act (CARES Act) signed into law last week makes it easier than ever to take distributions and loans from a retirement plan, with fewer tax consequences. Beyond this provision, employers may also voluntarily make it easier to take withdrawals and loan…

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26

Mar 2020

Putting Retirement Plan Losses in Perspective

I’m not thrilled with the recent market volatility, and I suspect that you’re not either! Like many, my retirement plan account has suffered, and, as someone in my 50s, this is not great news. However, it has not suffered as much as the Dow Jones Industrial Average (down 25.7% year-to-date, as of 3/…

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