A new EBRI research report compares the outcomes of participants in automatic enrollment 401(k) plans versus defined benefit (DB) plans; when reducing the rate of return assumptions and utilizing current annuity purchase prices, results show that in many cases the automatic enrollment 401(k) plans lose their comparative advantage to the stylized, final-average DB plans.
Tag: 401(k) plans
Questions about tax rules, 401(k) basics and financial terminology account for about 63% of the questions Dream Forward’s AI chatbox receives.
Long-term 401(k) participation, savings and investing trends have also been positive, due in no small part to automatic plan features, according to a report from Fidelity Investments.
Based on the ERISApedia.com Market-Based Portfolio Model, the optimal number of investment categories is between 12 and 20.
After a complex set of motions and rulings, the parties have now opted to settle the ERISA self-dealing lawsuit rather than proceed to the full trial.
The Plan Sponsor Council of America’s 61st Annual Survey of Profit Sharing and 401(k) Plans finds the most used benchmarks for retirement plan success remain participation and deferral rates.
The availability of Roth contributions has doubled in the last decade, and more plan sponsors are using a default deferral rate with automatic enrollment that is higher than 3%, a Plan Sponsor Council of America survey found.
If the proposed rules are finalized, there would be no more suspension of deferrals after a hardship withdrawal or requirement to take a loan before one.
An analysis of participants who remained active in the same 401(k) plans from year-end 2010 through year-end 2016 shows their accounts balances more than doubled in that period.
(b)lines Ask the Experts –Limits When Contributing to Both For-Profit and Nonprofit Retirement Plans
In a SURVEY SAYS marking the 40th anniversary of the Employee Retirement Income Security Act (ERISA), the change to ERISA during the past 40 years that received the greatest percentage of votes for being the one that most helped participant retirement savings outcomes was the establishment of Section 401(k) qualified deferred compensation plans.
However, 20% said they do not understand the process for withdrawing money from their 401(k) in retirement, according to a Charles Schwab survey.
A lawsuit alleges that the defendants failed to take advantage of the plans' bargaining power by only offering actively managed retail mutual funds as investment options.
The revitalized programs now offer simplified investment lineups, affordable pricing and fiduciary support services.
It marked the second consecutive month of no above-normal trading, the first time this has occurred since May and June 2017.
In 2017, target-date funds (TDFs) represent 41% of CIT assets in 401(k) plans, Cerulli Associates finds.
Alight Solutions found a nearly $100,000 difference in 401(k) savings between participants who had loans outstanding and those who did not.
The financial firm will pay $6,900,000 in settlement.
A new law would raise the contribution limit for SIMPLE plans from $12,500 to $15,500 for the smallest businesses and give businesses with 26 to 100 employees the option of the higher limits.
The new law extends the time a participant has to repay loans from 60 days after an offset to the date their tax return is due.