401k Advisors & Employee Benefit News
Benefit News by San Francisco 401(k) Advisors
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 [...]
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 [...]
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 [...]
Named the SAVE Act, Congress has reintroduced legislation that would give small businesses greater flexibility and enhanced incentives for sponsoring employer-based retirement plans for their employees as well as promote the disclosure of retirement savings in the form lifetime income to plan participants. The Small Businesses Add Value for Employees Act (SAVE Act) was recently [...]
401k fee disclosure continues to be a dominant topic for plan sponsors. Representative George Miller, of California, authored legislation that would require 401k retirement plans to notify each plan participant of all the fees they are charged regarding their account. The fees include items such as investment management fees, sales commissions, and any additional fees paid for [...]
Investment Manager Style Analysis – what is it? Here’s a clear explanation of style analysis and the two reasons why investment manager style is critically important to 401k plan sponsors. Our Investment Due Diligence process places an important emphasis on an investment manager’s style, employing a technique called “quadratic optimization.” Quadratic Optimization” is a big [...]
The Employee Benefit Resource Institute has released some additional information about trends in retirement plans. Some of the topics they have reported on in the 2007 Retirement Confidence Survey include; modest account balances, investment advice and working in retirement. Modest Account Balances- about half of 401k plan participants have balances of less than $25,000. While 68% of participants [...]
Most 401k plans require that you file an Annual Form 5500. The Form 5500 is basically a return that you file with the Employee Benefits Security Administration (EBSA – Department of Labor Processing Division) each year. This is an informational return that reports the financial information for your retirement plan for the year and does not require [...]
Securing and maintaining a Fidelity Bond is a DOL requirement for a 401k plan, yet many people are confused as to its purpose. The purpose of a Fidelity Bond is to protect the assets in a retirement plan from misappropriation (i.e., fraud or malfeasance) by plan fiduciaries that have access (or decision-making authority with regard) to plan [...]
An additional provision within the Pension Protection Act of 2006 (PPA) is the new rollover option for non-spouse beneficiaries. Historically, if the beneficiary was the spouse they had certain options that were not available to other types of beneficiaries. The surviving spouse could rollover the account value into their own retirement plan, such as a 401k, [...]
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