There is a lot to like about the Securing a Strong Retirement Act (SSRA) of 2020. Given that there are 36 items in it, that’s saying a lot. Introduced on October 27, 2020 by House Ways and Means Committee Chairman Richard E. Neal (D-MA) and…
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A retirement plan committee member may be a plan fiduciary and, consequently, held personally liable to the plan if he or she is granted or exercises discretion in the operation or administration of a retirement plan that is subject to the Employee Retirement Income Security…
Pentegra administers many 401(k) plans that include standard after-tax contributions—the non-designated Roth 401(k) type. And one thing we have learned is that after-tax contributions can create problems for the sponsor if the plan is not carefully designed and properly administrated. In a 401(k) plan, standard…
No surprises. That is the objective plan sponsors should strive for when it comes to managing a retirement plan. With all the moving parts associated with retirement plan administration, it’s easy to miss things. The reality is that mistakes can and do happen, and when…
To be clear; a retirement plan is not required to have an Investment Policy Statement (IPS). But the more important question is should a plan have an IPS? To use a silly analogy, a person need not have a parachute to jump out of an…
Healthcare is generally one of the largest expenses during one’s retirement and costs continue to rise. These costs are rising primarily due to an aging population and longer life expectancy rates. According to Fidelity Investments, an average retired couple age 65 in 2021 may need…
Many financial organizations tout the benefits of their ERISA 3(16) fiduciary services and, frankly, many of these messages can sound irresistibly compelling. But buyer beware; not all 3(16) fiduciary services are created equal. In today’s increasingly litigious environment, it is imperative for plan sponsors to…
Implicit in planning for retirement is looking ahead. But thanks to the SECURE Act and the Internal Revenue Service (IRS), it can pay to look to the past as well. The Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019 allows an employer…
With 2021 behind us, many business owners are discovering that, despite COVID-related challenges, they had a good year from a business perspective. That means it would be great to have additional tax deductions and credits to help reduce the business’s overall tax liability. Fortunately, certain…
How does one go about assessing a third-party fiduciary for a company’s retirement plan? I thought this might be a good time to revisit the issue, and to remind readers of what they should look for when considering an independent fiduciary. When it comes to…
Newly released research has uncovered an unsurprising trend: The Covid-19 pandemic has affected many Americans’ approach to their retirement plans. What is perhaps surprising, however, is how many people expect to retire earlier than they had originally planned. According to a survey conducted by Northwestern…