Top of Mind


Showing entries with the topic “Administration”.

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09

Jul 2020

The DOL’s Proposed Fiduciary Rule: Some “Top of Mind” Thoughts

As the 123-page Department of Labor (DOL) Fiduciary Rule arrived on my computer on the evening of June 29, I did not have high expectations. After all, the DOL has been at this for a decade, with no success. And the prior Fiduciary Rule - which I liked - did not survive a court challenge from the ve…

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02

Jul 2020

The CARES Act “Run on the Bank” That Wasn’t

Remember back in March when retirement plan recordkeepers were panicking about the COVID-19 pandemic and the related stock market plunge, allegedly fielding record volumes of calls from frantic participants who not only wanted to flee equity investments, but also wanted to take out their money entir…

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25

Jun 2020

The Retirement Problems — and Solutions — for Younger Boomers

The latest State of the Participant 2020 report from John Hancock brought some unwelcome news, echoed in other recordkeeper reports: the younger half of the Baby Boomer generation — those aged 56 to 65 — are generally unprepared for retirement. In the report, the two age cohorts spanned …

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11

Jun 2020

Replacing Mandatory Employee Contributions with Automatic Enrollment

While mandatory contributions are a necessity in defined benefit plans to ensure proper funding, I have never been a proponent of them in defined contribution plans, except when they serve as the only way to make pre-tax contributions to a qualified retirement plan (such as 414(h) pickup contributio…

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28

May 2020

Reader Mail: More on Roth Conversions

We love reader feedback – and to our excitement, we have been receiving a lot lately! After our recent blog post on Roth Conversions, Jack Towarnicky of the American Retirement Association (check out his blog here), sent us some interesting insights and graciously allowed us to share them with you: …

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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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