…what are called non-qualifying assets. These are investments that include limited partnerships, artwork, collectibles, mortgages, real estate or the securities of “closely-held” companies. If a plan has more than 5% in these non-qualifying assets, the company needs either a bond amount equal to 100% of…
…cover basic monthly expenses; and 44 percent of retirees have gone back to work to ensure adequate retirement income.[2] Workplace retirement plans are the leading venue for accumulating assets for retirement. But as mentioned earlier, low levels of access and savings rates were the impetus…
…cybersecurity in retirement plans a top focus. During this webinar, we’ll discuss the Department of Labor’s “three points of light” from its guidance, and the practical and tactical actions financial advisors, plan sponsors and plan participants can take now to tighten security around retirement assets….
…employers to follow suit. However, when one considers the circumstances of IBM’s current retirement benefits program, it is easier to see why this seemingly drastic change made sense for IBM … and for its employees as well. That said, it does not mean this strategy…
…providers about changes to the plan on a “timely basis”. Incorrect application of the plan’s definition of compensation deferrals and allocations. Since plans may use different definitions of compensation for different purposes, some plan sponsors may get mixed-up when it comes to applying the proper…
…it as a hiring and retention strategy. Provision: Emergency savings accounts Plans can permit non-highly compensated employees to contribute up to $2,500 into an emergency savings account within the plan. Employees may access the emergency savings accounts periodically. The emergency savings account contributions are considered…
…fiduciary rules under the Employee Retirement Income Security Act of 1974 (ERISA) if certain requirements are met. Those rules include a requirement that assets are invested “in an investment product designed to preserve principal and provide a reasonable rate of return.” These are called “Safe…
…the plan, the ultimate amount available to the participant is determined by the account’s investment growth. The participant typically directs the employer (or plan administrator) to invest the assets among the options made available in the plan, and the growth depends on how those assets…
As a financial advisor, you know that the people who exercise control and authority over the management of a retirement plan’s assets are fiduciaries. So are professionals who provide investment advice with respect to those assets. In most cases, plan sponsors understand that they,…
…more than the lesser of the base percentage or 5.7%. A couple of important keys to keep in mind: The allocation method or formula for each retirement plan is spelled out in its plan document and the plan would need to adopt an amendment if…
Reporting plan compensation right is integral to plan success. Compensation is the basis for determining contribution allocations, compliance testing as well as employee status. It is also one of the top sources of plan errors that can have long term, expensive consequences. The start of…
Answering the “Why Us?” Question Whether retirement plans are core to your practice or part of a larger strategy to help clients, you’ll compete more effectively if you successfully communicate how you differentiate yourself from other advisors. From the perspective of many business owners,…