The 2013 401k Contribution Limits were announced by the IRS on October 18, 2012. Every year, the limit can be adjusted by an index for inflation set at $500 increments. This means that the 2013 pre-tax contribution limit for 401k plans will be $17,500 up from $17,000. 2013 Maximum 401k Contribution Over 50 Increased By “Catch-Up” Contributions [...]
401(k) Plans
News & Resources for 401(k) Plan Sponsors and Other Retirement Plan Providers
408(b)(2) Disclosure Regulations Delayed to July 1, 2012
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The Employee Benefits Security Administration (EBSA) is releasing final 408b-2 regulations. In addition to removing the “Interim” tag on the regulations, a few changes were made to the disclosure rules. Most importantly, the effective date for 408b-2 compliance was moved back to July 1, 2012. The following are some of the newest 408b-2 regulation changes [...]
401k Plan Goals — How Do You Measure Success?
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As an employer, you may feel that having a 401k plan in place is sufficient. But have you ever considered your 401k plan goals? Generally speaking, if 401k plans are meant to be used to augment retirement income they may be considered a success. However, if 401k’s are expected to serve as the primary source of retirement income (along [...]
401k Loan Rules
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Today, the majority of 401k plans include provisions for a participant 401k loan. That means an employee can borrow money from his or her account and repay it through payroll deduction without incurring taxes or penalties. This article examines the details of 401k loans and discusses the pros and cons of taking a loan from retirement [...]
401k Record Retention: What Should I Keep And For How Long?
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As a plan sponsor, have you ever wondered how long you should maintain various plan records? Are you running out of storage space for your existing records? When it comes to 401k record retention and document storage, remember that your number one goal should be to have materials preserved in a format that allows for quick [...]
Target Date Glide Path
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While the term glide path may still be defined by Merriam-Webster as “the proper path of descent for an aircraft preparing to land”, 401k plan sponsors know this refers to a Target Date Glide Path. This is the process by which your 401k Target Date Investments gradually reduce their equity exposure as participants near retirement age. As currently designed, [...]
Automatic Enrollment Improves 401k Plan Participation
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Low 401k participation is a concern for plan sponsors, since it means that employees are not on track for retirement readiness. In many cases, low participation can result in a failure of the 401k plan’s nondiscrimination tests. Often the test results end up creating unwanted refunds to highly compensated employees. As 401k Advisors, we look [...]
Small Business Jobs Act of 2010: Roth Conversions
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On September 27, 2010, the Small Business Jobs Act of 2010 (SBJA 2010) was signed into law. The new law significantly expands the potential use of the Roth tax treatment within employer retirement plans. Small Business Jobs Act Gives Many the Option to Rollover to Roth Beginning in 2010, new rules allowed employees who were [...]
What Should a Fiduciary Be Doing in Down Markets?
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With the recent stock market volatility, retirement plan fiduciaries are wondering what they should be doing, or if they have done enough, to help participants cope with down markets. Following are three governance items for you, as a fiduciary, to follow in times of market turmoil. As 401(k) Advisors, we work with retirement plan fiduciaries to [...]
In-Service Rollovers Explained
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In-service rollovers are poorly understood by both plan sponsors and participants. A 401(k) plan must specifically allow for this feature. Greater desire for asset allocation and diversification has highlighted the risks associated with having a majority of a participant’s retirement assets with just one plan and one company stock. An in-service rollover may help you [...]
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