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week ending April 17th, 2020
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Now may be a good time to review all the retirement-plan related decisions plan sponsors are contemplating right now. Reminding defined contribution (DC) plan participants to stay the course in their investments cannot be repeated enough; there is evidence that participants listen. The message to stay the course is also relevant to defined benefit (DB) plan sponsors that may be wondering what they should do with their investments during this unprecedented time. For plan sponsors contemplating a change to employer contributions to their DC plans, if they’ve been able to participate in the paycheck protection program, that money can cover retirement plan contributions as well, the government confirmed. If plan sponsors are still contemplating whether they will allow for COVID-19 distributions and expanded loan limits, they should consider the needs of their workforce and be sure to include messaging to let participants know how their decisions may impact their long-term financial goals. And, some plan sponsors with non-calendar year plan year-ends have been given relief on Form 5500 filing deadlines, but for those with calendar year-ends, the July deadline so far has not been changed—it’s business as usual on that front. Information to help guide plan sponsor decisions can be found in this edition of PLANSPONSOR Weekend. |
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Editor's Choice |
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Investing
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Money Manager’s COVID-19 Message: Stay the Course
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“Rather than panic and act on their emotions, the vast majority of participants allowed their DC plans to do the job they were meant to do,” says Katherine Roy at J.P. Morgan, recalling the lessons learned from the Great Recession.
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Compliance
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Form 5500 Basics: What Sponsors Need to Know
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The purpose of Form 5500 is to obtain information regarding plan design and basic plan sponsor information, and the regulatory penalties for failures in filing the form can be severe.
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Popular Reads |
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Compliance
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Trustee Sued Over Retirement Plan Account Fraud
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The lawsuit claims the trustee allowed an unauthorized person to take a distribution from a participant’s account and that the trustee is refusing to provide information to help remedy the situation.
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