This issue’s topics include:
It may be time to offer a self-directed brokerage account option
Self-directed brokerage accounts (SDBAs) within a 401(k) plan typically offer participants the ultimate investment smorgasbord: a virtually unlimited selection of stocks, bonds, exchange traded funds, and mutual funds to feast on. Yet relatively few sponsors — only 16% of plans on the platform of one of the largest 401(k) recordkeepers — offer them. This article looks at the pros and cons of SDBAs, as well as the ongoing monitoring and fiduciary aspects of these types of accounts. A short sidebar reviews recent market data about the typical SDBA account holder.
Is there a “MEP” in your future?
Streamlined retirement plan model under review
For small employers, the costs of administering a retirement plan can be intimidating. Legislation in Washington could provide some relief — particularly for very small employers — by easing regulatory restrictions covering “multiple employer plans” (MEPs). This article highlights how the changes will help small employers participate in MEPs.
Not planning for early retirement threatens employees’ financial security
Employees often are unfazed by retirement calculators or other recommendations telling them they’ll need to step up the pace of their retirement savings to retire at a “normal” age. The Employee Benefit Research Institute’s latest “retirement confidence survey” compared what employees say their retirement timing plans are to when people in general (not the same people stating their intentions) actually do retire. This article looks at the study and what employers can do to help participants avoid being surprised when they do retire.
What to do if you inadvertently blow through 415(c) limits
What happens if a plan allocates too much money to a plan participant’s 401(k) account in a given year? This article reviews recent IRS guidance about the steps for plan sponsors to take in this situation.
This feature lists a few key year-end tax reporting deadlines for December and January.
As always, we hope you enjoy this edition of our newsletter and we look forward to receiving your feedback. Should you have any questions regarding the information contained in the attached materials or our Employee Benefit Plan Services, please feel free to contact me directly.
Want to learn more?
Join our Employee Benefit Plan Resources group on LinkedIn for more frequent updates on recent developments and best practices and discuss related topics with your peers.