401k Hardship Loans – A double edged sword
Some 401(k) plans allow participants to take loans, and others do not. It is quite a controversial subject, with some arguing participants should be empowered to access their savings, while others prefer a more paternalistic approach to help ensure retirement …
IRS Retirement Plan Contribution Limits for 2021
The IRS recently announced the contributions limits to retirement plans for 2021. They kept the maximum contribution limits and catch-up contributions the same as 2020 for 401(k), 403(b), and 457(b), plans. Participants can contribute up to $19,500 in 2021, plus …
ESG Investing & Retirement Plans – DOL Final Rule
ESG funds, those that build investment portfolios focused on environmental, social, or governance-related issues, have become a hot topic the past few years. While such funds have been around for many years, they have gained assets, media attention, and credibility …
The End of the 401k Plan as We Know it?
It is common knowledge that Americans are reaching retirement in worse financial shape than the generation before. Countless articles decry the coming “American retirement crisis” and the litany of reasons for it. No matter why it occurs, the solution is …
DOL – Electronic Disclosure Ruling
The U.S. Department of Labor (DOL) final rule on electronic disclosures for retirement plans went into effect this past July. This means that plan administrators now have the option to use electronic delivery as a default for certain disclosures, provided …
Automatic Plan Features
Over the past few decades the rise in Defined Contribution plans has shifted the burden for retirement planning and saving away from employers to fall squarely on the employees’ shoulders. It’s a responsibility that can be intimidating for those who …
401(k) Education is Crucial to Participant Effectiveness
The benefits of 401(k) plans for participants include favorable tax treatment, portability, diverse fund selection, and shared administrative expense. Most employees have heard of the term 401(k) and generally know if their company has a plan in place, but several …
Participation: The First Step to Unlocking Your 401(k)’s Potential
While 401(k) plans can be a key component of your employees’ retirement savings, they only work if employees participate in your plan. Indeed, a Vanguard paper on this topic found that participation and savings rates were the primary determinants of …
The QDIA – The Qualified Default Investment Alternative
Inertia is a strong force. It is why many retirement plan participants never make changes to their savings rates and investments within their plans. Unfortunately, this can lead to some bad outcomes. It isn’t unusual to hear stories of people …
Indexing Works: Just Look at the Numbers
While the philosophical debate continues to rage on about the merits of active management, we’d rather focus on the data. After all, it’s the data that drives our decision-making process as retirement plan advisors and fiduciaries. Morningstar, an independent provider …