The law changed the rules for 401(k) loans and hardship withdrawals, making it easier to draw money directly as a hardship without first getting involved in the loan process.
Participation rates were nearly 96% higher for plans—a difference of 40 percentage points—with auto enrollment; the usage of auto escalation was nearly five times higher in plans that employ opt-out options rather than opt-in, and employer match rates increased in 2018, T. Rowe Price found.
In the first three quarters of 2018, only 2.2% of participant stopped contributing to their plans, ICI data shows.
J.P. Morgan makes recommendations for plan design and TDFs based on savings and withdrawal behaviors it analyzed.
The guide includes information on rollovers, loans, hardship withdrawals and much more.
However, at year-end 2015, for example, the ICI says participants in their twenties had 80% of their portfolios invested in equities, while participants in their sixties had 55% in equities.
The IRS is loosening hardship withdrawal and loan rules, and the DOL announced postponed deadlines for Form 5500 filing, among other things.
Amid strong market returns in Q1 2017, most participants left asset allocations in DC plans unchanged, according to a new report by the ICI.