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Apr 2020CARES 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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Apr 2020Before 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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Apr 2020Before 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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Mar 2020Putting 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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Mar 2020SECURE Act Part-Time Employee Provision: Don’t Count Hours Unless Absolutely Necessary!
I recently attended the That 401(k) Conference in Orlando, Florida, where conference moderator, Ary Rosenbaum (who runs the amazing and informative That 401(k) Site), conducted a session on the impact of the SECURE Act. In that session, he stated that one of the biggest administrative issues created…
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Mar 2020Looking to Buy an Annuity? You May Already Have One!
Annuities, a form of investment that can provide a future stream of income payments to their owners, are aggressively marketed in retirement plans. And, it appears that the recent market uncertainties will only exacerbate the situation. While annuities serve as an important component in retirement p…
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Mar 2020How to Delay and/or Avoid Required Minimum Distributions
While the SECURE Act raised the commencement age from age 70½ to 72 for required minimum distributions (RMDs), there are actually a number of other ways that retirement plan participants can delay and/or avoid minimum distribution requirements if they plan ahead. Consolidate pre-tax retirement plan…
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Feb 2020Random Nuggets I’ve Learned from the Internet, 2nd Edition
One of the benefits of constantly consuming retirement-related content is that, even after 28 years in the retirement business (yes, I’m old!), there is still an endless number of things to learn. In the second edition of “Random Nuggets I’ve Learned from the Internet,” I cover some of those.While i…
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Feb 2020Employee Deferral Trivia
A question in our recent SECURE Act webinar concerning a relatively obscure rule in 457(b) plans inspired a look into the absolute maximum that an individual could voluntarily defer into any combination of qualified retirement plans (403(b)/401(k)/457(b)) in 2020. The result was surprising: The 457…
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Feb 2020Decumulation Confusion: Social Security Claiming Strategies
In Part 1 of our decumulation series, we discussed the oft-overlooked topic of decumulation, or the spending of retirement plan assets during retirement years. In Part 2, we explored annuities as a decumulation strategy and the associated confusion for retirees. In Part 3, we examined the 4% rule, a…
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