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In September, the U.S. Federal Reserve announced it would hold interest rates steady for now but signaled at least one more hike may lie ahead before the end of the year. Moreover, rates are likely to stay elevated, as the Fed also...

Many companies are outsourcing more and more activities, mainly because outsourcing can provide cost savings and increase productivity. Outsourcing allows companies to focus more on their core businesses, rather than spending time on...

Holidays are all about spreading cheer and giving, but sometimes people tend to go a bit overboard, which can later result in financial stress.

In this challenging environment, how can plan sponsors support participants who may be struggling with high debt and help them avoid raiding their retirement savings to stay afloat?

Sponsors can assist by helping employees plan ahead and tailor their strategies with an early benefits election in mind.

In the modern era of numerous investment options and economic challenges, understanding the concept of money, known as financial literacy, holds significant importance.

Are you prepared for life's uncertainties? Your retirement plan relies on assumptions: savings, investment duration, inflation, and returns.

Participant Distributions: Navigating SECURE 2.0 Changes

Tim Norris-Buzzini, CRPS®, CPFA™

Monday, August 28, 2023

In the ever-evolving landscape of retirement planning, staying informed about regulations is crucial. The SECURE 2.0 Act brings significant changes to participant distribution rules, impacting various aspects of retirement accounts....

According to recent data, nearly half of women ages 25 and older lack access to a tax-advantaged, employer-sponsored retirement plan.

The value of early contributions to retirement readiness means employers should focus on getting their youngest workers enrolled to their workplace retirement plan as soon as possible.

As employees prepare to deal with the financial burden of student loans, sponsors have an opportunity to help lessen the load and ensure retirement contributions don’t fall to the wayside.

If you contribute $7,500 each year from age 50 to age 67 (17 years), you can make a big impact on your future.

2023 Retirement Confidence Survey reveals waning retirement savings confidence. Strategies: enhance financial literacy, raise employer match, implement auto-features, promote catch-up contributions, offer one-on-one consultations, provide h

As financial pressures continue to impact work and personal lives, employers who offer professional financial planning assistance may gain an advantage in the competitive labor market.

More than half of workers identify professional retirement planning assistance as a key focus in terms of benefits they sought from their employer.

There are a few mandatory changes from SECURE 2.0 taking effect in 2024 that plan sponsors will need to comply with.

Are you prepared for a secure financial future? Discover some key aspects of a comprehensive risk management strategy.

Research revealed that subjects with a stronger connection to their future selves were more likely to delay gratification and make more prudent financial choices. How can plan sponsors help employees make the connection?

When conducting three- to five-year live-bids, it can be tempting to hyper-focus on fees. Here are some considerations to keep in mind when assembling — and evaluating — your next RFP.

At a recent conference held by the Investment Company Institute, the SEC proposed the policy of swing pricing to combat the adverse effects of fluctuations in buying/selling activity within the market.

Clear, achievable, and meaningful goals can lay the foundation for success. Vague aspirations may have limited worth without a well-defined plan.

From recent college grads struggling with student debt to seasoned professionals planning an imminent retirement, participants’ financial needs and goals are as diverse as the workforce they’re part of. In response, many...

High participation rates don't always translate to high deferral rates. According to the 2022 Callan Defined Contributions Trend Survey, three-quarters of DC plans offer auto-enrollment, while only two-thirds provide an auto-escalation...

A retirement plan may have one or more fiduciaries who have distinct responsibilities, though many individuals and committees may serve in multiple fiduciary roles. Here is a brief overview of the categories of fiduciaries:Named...

There are many formulas for figuring out how much money you need to retire. While thinking seriously about retirement finances is useful, for most people, these formulas may not come close to what your retirement actually looks like...

Employers can improve retirement readiness by promoting catch-up contributions, with 15% of participants using them. Strategies include matching contributions, education, and online tools. SECURE 2.0 law offers a short-term catch-up "burst

Generative AI like ChatGPT can revolutionize retirement plan onboarding & communication. But limits & safeguards are needed for legal compliance, transparency, data security & oversight.

When it comes to monitoring and selecting investments, the responsibility lies with the ERISA fiduciary for managing your company’s 401(k) plan, and this means the fiduciary is subject to ERISA’s prudent man rule.

The early bird really could get the worm! In our chart you will find no secret tips or tricks to investing that cite prior market events: just plain old math.

Here are some tasks to remember that you must do and some related things to consider whether you could do as a plan fiduciary and the reasons we think they are worth considering.

In December 2022, Morningstar adjusted its recommended starting annual withdrawal rate for balanced retirement portfolios upward from 3.3% to 3.8%. Learn how plan sponsors can help retirees optimize their withdrawal strategies.

An effective omnichannel strategy can help plan sponsors engage more employees, regardless of their level of investing experience or financial literacy.

You may be eligible for a valuable incentive, which could reduce your federal income tax liability, for contributing to your company’s 401(k) or 403(b) plan.

Across the nation, more and more workers are expecting to postpone retirement. In fact, a survey by the Nationwide Retirement Institute shows that 40% of older employees plan to retire later than anticipated because of inflation.

Retirement plan committees can help plans function more efficiently and effectively. They aren’t a requirement under ERISA, though many organizations choose to establish committees for the many advantages they offer.A Host of...

The designated benchmarks used within the Scorecard System were selected because they are the most appropriate and/or most commonly used indices in the marketplace (Russell 1000, MSCI EAFE, BC US Aggregate Bond, etc.). While both the...

Personal financial planning is an ongoing, lifelong process. If we break it down into small, achievable tasks, it’s a lot less daunting and can pay huge dividends to you and your family.

Do you know what will happen to your retirement savings if you were to pass away? Here are some things you should know about naming beneficiaries that could save your loved ones’ time, money and frustration.

A full two-thirds of employees don’t receive guidance on managing their retirement plan benefit while offboarding. Leaving 401(k) or 403(b) balances behind can result in orphaned accounts that sit unmonitored and unmanaged by...

Various solutions exist to reinforce retirees’ ability to manage the drawdown of the wealth and effectively use their assets and maintain a comfortable standard of living. The portfolio management can be guided and informed by...

According to Morgan Stanley at Work’s September Plan Sponsor Research Results, plan design is a fast-rising differentiator that’s driving employee enrollment and supporting talent strategy in many companies.401(k) plans...

Investing your money into retirement savings early is important to setting yourself on the path to your ideal retirement.

Investment policy statements (IPSs) are commonplace among retirement plans — with around 83% providing one. And that number tends to be even higher among bigger plans. Financial powerhouse Goldman Sachs is one of the larger...

With inflation at its highest levels in more than four decades, it’s not surprising that nearly three in four American workers report they’re experiencing increased stress concerning their personal finances. According to a...

Since the contribution limits were recently raised by 10% 401(k), 403(b) and most 457 plans (to $22,500), we thought now might be a good time to share creative ways to communicate to your participants the benefits of increasing...

Many of us are worried this season about what the economy will be doing the next few months and how it will affect their investments. As a reminder, markets are cyclical, they go up and down in what seems like a never-ending cycle.

December brings with it an expectation of cheer, hope, and festivities. What your employees do not expect (and, frankly, don’t want) are grumpy nudges about enrollment. With the anxiety of the pandemic and lockdowns close behind...

Following in the footsteps of many banks and big accounting firms, there’s been a growing trend toward consolidation among retirement plan service providers. But for the most part, less competition hasn’t translated into...

In October, the Internal Revenue Service significantly raised the contribution limits for 401(k)s and other plans effective in 2023. As plan sponsors begin to think about how to communicate these changes to employees, it’s...

In September, the U.S. Department of Labor (DOL) released an Interpretive Bulletin that updates guidance on audits of benefit plans under the Employee Retirement Income Security Act. The updated guidelines are intended to help...

With more than two-thirds of American workers having access to a retirement plan, employees and job seekers have come to expect one as part of their benefits package. That means it’s more important than ever to make sure your...

ERISA states that every plan document must identify a “Named Fiduciary” to be the individual or entity serving as the primary fiduciary responsible for all plan management activities (e.g., President, Plan Administrator,...

The holidays are upon us! Staying healthy just might make you wealthy. With small lifestyle changes and healthy choices (especially with all the shared yummy foods), you may reduce your annual healthcare costs and increase your income.

Most 401(k) plans have access to a large pool of funds, making them an attractive target for cybertheft. And while stolen funds are devastating, unauthorized transactions aren’t the only goal of cybercriminals. 401(k) accounts...

As the seasons change and the days start to get chillier, market trends are calling for doom and gloom in the economy. Some argue that a recession is inevitable if not already here. What exactly does this mean and what should Americans...

Recently, the U.S. Labor Department issued new 2022 guidance regarding 401(k) retirement plans that offer, or are considering offering, investments in cryptocurrency and/or self-directed brokerage accounts in their plan menu. Most...

With the recent market volatility, it’s understandable that you may be concerned about your investments. Don’t let the market volatility spook you! Consider the following tips...

Over the past couple of years, the so-called “Great Resignation” has led to an unprecedented number of career changes. At the same time, the boom in remote and gig work means that skilled employees have more choices than...

As the global economy continues to gyrate on an uncertain path, many are feeling increased stress regarding their finances. As of March, for example, total U.S. household debt was up more than 8% year over year, according to a study by...

“Zillennials” are people who were born between 1993 and 1998. According to a recent Met Life survey (“The Rise of the Whole Employee: 20 Years of Change in Employer-Employee Dynamics.”) they are expecting a more...

Much has been made of the current state of the American worker as it pertains to their retirement savings.  According to a recent study by the General Accountability Office, 29% of Americans 55 and older do not have any retirement savings

Plan sponsors invest much time and effort in improving employee financial literacy. They offer educational content, provide opportunities for group and individual consultation, and encourage participants to approach retirement planning...

No one wants to be caught flat-footed when the auditors come calling. And with a new standard issued by the American Institute of Certified Public Accountants (AICPA), both the auditors and plan sponsors will be subject to new...

Each month we provide our plan sponsor clients with a participant ready communication piece. All participant corner documents are saved to your Fiduciary Briefcase. Once logged into your account, click on Briefcase > Participant...

According to T. Rowe Price, some sponsors may anticipate that their relationship with participants — as well as their responsibilities toward them — will naturally wind down at retirement, even though only about one in five...

The ever-growing burden of student loan debt looms menacingly over many Americans, crippling their ability to save for retirement and other financial goals. According to Bankrate, around 60% of Americans who have student debt have...

As a result of the significant rise in revenue sharing litigation it behooves plan fiduciaries to confirm and document the prudence and appropriateness of any revenue sharing arrangement.Revenue sharing is the sharing of fees from one...

Safeguards on 401k plans are in place to make sure that employee benefits are allocated equitably and that companies don't fail IRS nondiscrimination tests.

Some business owners are forgoing offering a 401(k) to their employees because they fear they don’t have the time or expertise to manage a plan, but partnering with a retirement plan advisor can help your business thrive.

In an especially tight labor market, employers need to do all they can to attract top talent to their organizations. 401k matching is top of mind for employees, according to Principal’s 2021 Retirement Security Survey.

Protect your loved ones and ensure you are keeping up to date with your retirement plan with our summer homework assignments!

Though many employees are aware that behaviors such as enrolling in and contributing sufficiently to their company 401(k) can help them prepare for a successful retirement, too often they fail to develop the necessary saving and...

The Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019 enables two or more businesses to form a pooled employer plan (PEP) regardless of whether they’re related by industry, location or other association....

Finally, something everyone could agree on — at least on the Supreme Court of the United States. The question before the court in Hughes v. Northwestern University was the plausibility of a breach of fiduciary duty claim stated...

Each month we provide our plan sponsor clients with a participant ready communication piece. All participant corner documents are saved to your Fiduciary Briefcase. Once logged into your account, click on Briefcase > Participant...

According to the College Board, the cost of a four-year education increased more than 200% (after inflation) from 1988 to 2018. This has placed a tremendous burden on graduates, with national student loan debt now topping a...

Albert Einstein may not be remembered as a finance expert, but he seems to have had a bead on the power of smart investing. When asked what mankind’s greatest invention was, he’s reputed to have answered “compound...

A recent class action lawsuit highlights an often neglected but important item of fiduciary concern.   The plaintiffs in this case have asserted claims for breach of the fiduciary duties of prudence and failure to monitor...

Each month we provide our plan sponsor clients with a participant ready communication piece. All participant corner documents are saved to your Fiduciary Briefcase. Once logged into your account, click on Briefcase > Participant...