…no rebalancing over the 2008-2021 period, the portfolio drifted from its initial 60%/40% target stock/bond mix to 77% stocks and 23% bonds, a far more aggressive allocation. Even just annual rebalancing moved the mix much closer to the 60%/40% target. While monthly rebalancing resulted in…
…roles and responsibilities involve handling funds or other property of the plan. So, a plan fiduciary who has no access to these processes or authority to direct funds would not be required to be bonded. Let’s talk about Coverage Requirements The amount of the required…
…of the other company. That would include, of course, responsibility for the target company’s retirement plans. In an entity purchase, as you’d expect, the target company becomes part of the acquirer’s organization. In that case, the acquirer generally does become responsible for the target company’s…
…as all current 401(k) and 403(b) plans established prior to 12/29/2022—the date of SECURE 2.0’s enactment. Consequently, even though Planning Plus established a plan before the date by which most new plans must include a SECURE 2.0 EACA (i.e., by the 2025 plan year), the…
…of the effective date of the amendment or the date the amendment is adopted, but not interest credits for interest crediting periods beginning before the later of the effective date of the amendment or the date the amendment is adopted.” The relief applies “only if:…
…established “on the date plan terms providing for the [salary deferral elections] are adopted initially. This is the case even if the plan terms … are effective after the adoption date.” If two plans both of which qualify for the pre-enactment exception are merged, the…
…receive tax-deductible charitable contributions. In cases where an individual has made nondeductible contributions to his or her traditional IRA, a special rule treats amounts distributed to charities as coming first from taxable funds, instead of proportionately from taxable and nontaxable funds, as would be the…
…each month, they won’t be able to contribute to even the best-designed plan. You know as a wealth management advisor just how important debt management, credit card responsibility, and emergency funds are to a stable financial future, and at the same time, you’re aware of…
…impact on your clients’ bottom line by helping them identify, fix and avoid these costly errors: Failure to update plan documents. By far, the most common mistake plan sponsors make is failing to update their plan documents to reflect recent changes in the law, in…
…Second, there is an IRA … (a Default IRA) to receive (via a rollover) and hold the distributed funds. Third, there is a ‘‘transfer-in’’ plan that receives the roll in distribution from the Default IRA when an IRA owner is matched with an account in…
…for investment losses related to contributions made on behalf of participants who failed to make their own investment choices. Under the regs, a QDIA can be either a target date fund, a balanced fund or a professionally managed account. It’s important to note that the…
…little thought is given to plans in these situations, a great deal of confusion, many missteps and fiduciary risk often arise. That said, failing to update the Plan Administrator role—the person or entity that is authorized with plan service providers to make decisions related to…