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Benefits & Administration |
After Seven Years of Declining, DC Fees Remain Flat |
Defined contribution (DC) plan fees—including recordkeeping, trust and custody fees—remained flat this year, NEPC found in a survey. The median fee per participant is $59, just a slight increase from $57 in 2016. This follows the previous seven years when the fees declined. In 2006, when NEPC first conducted this survey, the fees were $118.Read more > |
‘Rothification’ of DC Plans Could Harm Participants |
According to the Joint Committee on Taxation, defined contribution (DC) plans will have “cost” the federal government more than $580 billion in lost tax revenue by 2020. This figure is a big reason why retirement plan providers and their plan sponsor clients are concerned about the potential “Rothification” of 401(k) plans. Legislation to this effect could mandate that some or all contributions to workplace retirement plans be made on an after-tax basis, with qualified withdrawals becoming tax-free. While the concept can seem appealing to certain investors and improve outcomes in certain circumstances, some analysts believe that forcing the Roth approach on all savers will likely have negative consequences.Read more > |
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Products, Deals and People |
Retirement Industry People Moves |
OneAmerica Names West Coast Relationship Executive; Callan Names New CEO; John Hancock Retirement Names Taft Hartley Sales Manager; and more.Read more > |