Retirement plan sponsors that take cybersecurity seriously are less likely to see their participants’ assets and personal information affected by a successful cyberattack.
“Our university recently instituted a ‘phased retirement’ program for faculty where they can gradually transition into retirement by working a reduced schedule while still retaining university benefits. After two years, the faculty member then formally retires from the university. Such employees remain eligible for retirement plan benefits until they actually retire, but my question relates to in-service distributions.
Just as people diversify their investments, the Roth option is viewed as a way to diversify the tax treatment of savings. Here’s what plan sponsors need to know about Roth accounts and in-plan Roth conversions.
Passive TDFs are not always the safer fiduciary choice and not always the better choice for DC plan investors.
“Recently the recordkeeper who is taking over administration of our Employee Retirement Income Security Act (ERISA) 403(b) plan from a prior recordkeeper asked for the identity of the plan’s “named fiduciary.” Though I am well familiar with who the plan’s fiduciaries are, I am unfamiliar with the term “named fiduciary.” Can the Experts clarify?”
Michael Barry, president of the Plan Advisory Services Group, opines about the most important role of the employer in the employer-sponsored 401(k) plan system.
In an age where technology rules, call centers are still an important tool for those wanting a more personal experience.
“I read your Ask the Experts last year on the maximum permissible vesting schedules for a defined contribution retirement plan. But what if I don’t use the maximum vesting schedules for employer contributions (three year cliff or six-year graded)? What other restrictions apply?”
A distress termination may be a viable option for financially challenged employers that need pension funding relief but want to avoid bankruptcy.
As retirement plan sponsors focus on increasing retirement income replacement ratios for participants and new generations enter the workforce, they need to look at enhancing their retirement programs so participant retirement goals are met.
Programs need to be individualized and include financial coaching.
Drawing insights from across the entire Prudential Financial organization, Josh Cohen, PGIM head of defined contribution, offers some sobering statistics about the performance of DC plans—as well as some strategies for broadly boosting plan performance and participant outcomes.
“My plan needs to correct some 402(g) excess deferrals for the 2017 plan year. In looking at some old Ask the Experts columns, I stumbled upon an old Q&A in this regard, but was wondering if the information is still current.”
Marcia Wagner, founder of The Wagner Law Group, answers questions about the IRS’ guidance about mortality tables that apply for the purposes of minimum funding for DB plans.
“We currently sponsor an Employee Retirement Income Security Act (ERISA) 403(b) plan and allow hardship withdrawals for elective deferrals, but not earnings, since our understanding is that earnings on elective deferrals are prohibited from being distributed under law.