…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…
…Auto-enrollment at a 6% default rate or higher. Auto-escalation features up to 10–15% contribution rate. Qualified Default Investment Alternatives (QDIAs) such as target-date funds or managed accounts. These features improve outcomes and demonstrate that your client is operating in the best interest of participants—a core…
…Understanding the Deal Structure: Why It Matters Retirement plan treatment is largely dictated by whether the M&A transaction is a: Stock purchase (where the acquiring company buys the target’s stock and assumes the target company’s assets, rights and liabilities), Asset purchase (where selected assets and…
…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…
…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…
…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…
The upcoming plan amendment process is a key opportunity to align your plan with organizational goals. This course covers required and optional provisions, amendment timing and documentation, and explores upcoming IRS and DOL initiatives that may impact plan…
…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…
…primary concerns facing plan sponsors today. Changing Legislative and Regulatory Landscape In the past few years, plan sponsors have been bombarded with numerous new requirements. The SECURE 2.0 Act has created mandatory and optional provisions with various effective dates. For example, in the past year…