Insights

The SECURE 2.0 Act of 2022 includes 90+ provisions that should result in expanded savings opportunities for workers if more employers sponsor retirement plans and/or offer the new plan features. Many of SECURE 2.0’s changes are designed to assist small employers with offering a workplace retirement plan. This includes creating a new type of “Starter” …

For September 2022, the U.S. Bureau of Labor Statistics reported an 8.2% inflation rate over the prior 12 months.1 Although this number is shocking after so many years of low inflation, it doesn’t come as a surprise to consumers. Most consumers have felt their reduced purchasing power at the grocery stores and in housing and …

SECURE 2.0 seeks to increase retirement benefit plan coverage of U.S. workers, specifically by small employers, and increase eligible employees’ retirement savings. Putting their money where their mouth is, so to speak, Congress created new tax credit incentives and enhanced existing credits to encourage eligible employers and small business owners to offer retirement plans to …

They’re here! A little later than in prior years, the IRS has finally released the contribution and other dollar limits that will apply to 401(k) plans and other tax-qualified workplace retirement plans for 2022. The contribution limits are increasing, which will allow employees and business owners to save more for retirement this year if they …

The SECURE Act of 2019 changed many retirement plan rules to make it easier for employers to provide workplace savings opportunities for employees and to encourage employees to save for retirement.  The changes covered in this final installment of the SECURE Act Series provide examples of how promoting the concept of lifetime income within the …

One of the primary objectives of the SECURE Act of 2019 is to increase access to retirement plans at work for more individuals. To accomplish this goal, lawmakers enhanced employer incentives for establishing workplace retirement plans and changed eligibility rules to ensure that “long-term, part-time” employees are allowed to defer a portion of their paychecks …

Effective January 1, 2020, the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act) made significant changes to the rules governing retirement plans and IRAs. Most of the changes are designed to help individuals save more for retirement. One of the provisions of the SECURE Act, however, has been perceived by some …

Just before the COVID-19 crisis struck the U.S. and commanded all our attention, Congress had passed legislation that was a pretty big deal for retirement savers. Effective January 1, 2020, the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act) made significant changes to the rules governing retirement plans and IRAs to help individuals save …

The Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act) made significant changes to the rules governing retirement plans to encourage more employers to sponsor workplace plans, as well as to encourage individuals to save more for retirement. Many of these changes are effective for plan or tax years beginning January 1, …

The Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act) was signed into law in December 2019. The SECURE Act makes significant changes to the rules for retirement plans to encourage more employers, particularly small employers, to offer retirement savings plans to their employees. Some of the provisions include increased tax incentives, …

No one wants another to-do list, especially at this busy time of year. But if you’re sponsoring a tax-qualified retirement plan for your employees, a little time spent before year-end to make sure the last compliance deadlines of the year are met could prevent a lot of time spent later to correct plan errors. By …

In exchange for the tax benefits provided to individuals saving in a qualified retirement plan, tax laws limit the amount of contributions that may be made to the plan each year and require plan contributions to be nondiscriminatory when comparing highly paid versus lower-paid workers. The contribution limits and thresholds associated with nondiscrimination testing are …

Want to learn more about retirement planning in the modern age from experts in the industry? Join us at the 2019 ASPPA Annual Conference, October 20-23 in National Harbor, Maryland! This conference dives deep into the new regulations and legislation surrounding the retirement industry, giving attendees an in-depth understanding of financial planning and how it …

As a 401(k) plan sponsor, you have probably received your mid-year nondiscrimination testing results. Did your plan pass? There are no consequences for failing mid-year testing, but it does give you fair warning that your plan may not pass at year-end. If the plan doesn’t pass year-end testing, you will have to take corrective actions …

Are your employees saving enough to retire at a reasonable age with financial security? Workers who have a retirement plan available to them are dramatically more likely to save money for retirement than those who do not have a plan (79% vs. 17%). Unfortunately, even when a plan is available, many employees choose not to …

Many retirement plan participants are thankful their employer’s retirement plan allows them to borrow from their savings before retirement and – if all goes according to plan – repay the loan back into their account. The tax laws permit these plan loans, so long as certain regulatory requirements are met. Employers must follow these rules …

Studies have shown that having access to a retirement plan at work is a crucial factor in whether American workers are financially prepared for retirement. But this good deed does not come without responsibility. The Employee Retirement Income Security Act of 1974 (ERISA) imposes important obligations and high standards of conduct on those who establish …

Another year, another incredible few days ahead with the 2019 NAPA 401(k) Summit. Benefit Trust will once again be attending the summit, the nation’s largest and most prestigious retirement-plan advisor event of the year. The event is being held April 7th-9th in Las Vegas, NV. There are over 30 individualized sessions to choose from that …

When workers experience a financial hardship, sometimes their retirement plan is the only financial resource they can tap into. The tax laws for qualified retirement plans, like 401(k) plans, permit plan sponsors to grant hardship distributions to workers if the requirements listed in Treasury regulations and the plan documents are met. Most 401(k) plans permit …

As a financial advisor, you can help retirement plan participants improve their chances of achieving a financially secure retirement by helping them calculate how much they should be saving each year through their workplace retirement plan. Simply providing a projection of their current savings as a monthly income stream in retirement can be a powerful …

Each year in October, the IRS announces the cost-of-living adjustments (COLAs) that will apply to retirement plan contribution limits and other thresholds for the following calendar year. Any change to the contribution limits requires adjustments in payroll systems and internal procedures designed to make sure plan contributions stay within the allowed limits. This chart provides …

Most defined contribution retirement plans contain a “cashout” provision that allows the plan sponsor to pay out retirement savings to workers who end their employment with less than $5,000 in their account. These forced cashouts can help reduce the staff burden and costs associated with keeping track of former employees in order to administer their …

With the rising cost of health care, some workers are concerned they won’t be able to save enough for retirement. In fact, of workers who reported cost increases in their health plans in the past year: 26% decreased their retirement plan contributions 43% decreased other savings contributions 15% took a loan or withdrawal from a …

Plan sponsors have important obligations as ERISA fiduciaries to a retirement plan. They must follow ERISA’s high standards of conduct as they administer the plan and safeguard participants’ assets. The key to managing ERISA fiduciary responsibilities is developing and following prudent plan governance practices. Adopting policies and procedures to make certain they are handling plan …

Join us at the 2018 ASPPA Annual Conference, October 21–24 in National Harbor, for the most relevant technical content in retirement planning. Explore the vibrant waterfront of National Harbor, attend the president’s reception and rock out to the classic 1980s hits at the Deloreans concert. You won’t want to miss this event! We love visiting …

Plan sponsors have important obligations as ERISA fiduciaries to a retirement plan. First of all they must follow ERISA’s high standards of conduct as they administer the plan and safeguard participants’ assets. The key to managing ERISA fiduciary responsibilities is developing and following prudent plan governance practices. Adopting policies and procedures to make certain they …

Plan sponsors have important obligations as ERISA fiduciaries to a retirement plan. They must follow ERISA’s high standards of conduct as they administer the plan and safeguard participants’ assets. The key to managing ERISA fiduciary responsibilities is developing and following prudent plan governance practices. Adopting policies and procedures to make certain they are handling plan …

Plan sponsors have important obligations as fiduciaries to a retirement plan. They must follow ERISA’s high standards of conduct as they administer the plan and safeguard participants’ assets. The key to managing ERISA fiduciary responsibilities is developing and following prudent plan governance practices like internal controls. Adopting policies and procedures to make certain they are …

Plan sponsors have important obligations as ERISA fiduciaries to a retirement plan. They must follow ERISA’s high standards of conduct as they administer the plan and safeguard participants’ assets. The key to managing ERISA fiduciary responsibilities is developing and following prudent plan governance practices like fee disclosures. Plan sponsors who adopt policies and procedures to …

“Revenue sharing,” a fee-for-service arrangement between investment companies and retirement plan service providers, is attracting the attention of retirement plan sponsors. As ERISA fiduciaries to a retirement plan, employers must understand how revenue sharing arrangements affect their plan fees. Against the backdrop of a growing number of lawsuits alleging that fiduciaries breached their duties by …

In life, there are few win-win propositions, but for employers who sponsor a 401(k) plan that allows plan participants to direct their own investments, choosing a Qualified Default Investment Alternative (QDIA) can benefit both the employer and the plan participants.   ERISA Requirements for Plan Sponsors The plan fiduciary (typically the employer sponsoring the plan) …

Plan sponsors engage a record-keeper or third party administrator (TPA) to help them manage their 401(k) plans. However, the plan sponsor is still responsible under ERISA for overseeing operations. They’re also responsible for making certain the plan is consistent with the terms of the plan document. This includes authorizing distributions. Plan sponsors must understand the …

Target Date Fund (TDF) options are plentiful and have become one of the most popular investment alternatives in qualified retirement plans. In fact, defined contribution retirement plans hold 67% of the over $1 trillion of TDF mutual fund assets.1 TDFs are popular with plan sponsors. Why? TDFs make investment decisions easy for plan participants who …

Benefit Trust Company’s “nBalance” is an automated, state-of-the-art, multi-currency Fund of Funds (FoF) portfolio cash flow management system, offered as a Benefit Trust-hosted service, which is designed to provide algorithmic cash flow allocation and rebalancing for asset allocation models that span an arbitrary number of hierarchal sub-asset class levels.  nBalance can deploy cash flows in …

what is the napa 401(k) summit? Expert retirement industry speakers by day and Nashville’s musical talent by night. Benefit Trust will be attending the 2018 NAPA 401(k) SUMMIT & Country Music Festival. These events will take place April 15th – 17th in Nashville, TN. Here we’ll come together with fellow retirement plan professionals for the …