Archive | February, 2012

Video: Regulatory Update—DOL Releases Final Fee Disclosure Rules

February 29, 2012

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After a much anticipated wait, the U.S. Department of Labor (DOL) released the final 408(b)(2) fee disclosure regulation that dictates what covered service providers must disclose to plan fiduciaries in conjunction with providing services to a covered plan . But what does the late release of the regulation mean for retirement professionals?
Related posts:

  1. Video: 403(b) Taskforce Releases New Industry Fee Disclosure Standard New regulations governing participant fee disclosure go into effect this…
  2. ASPPA Asks DOL For Extension on Fee Disclosure Craig Hoffman, General Counsel of ASPPA and the Council of…
  3. Keeping Current—A Regulatory Update on Retirement Plans ASPPA Annual conference attendees caught up on retirement plan regulation…

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Employee Benefits-IRS Provides Guidance On Interest Charged On Plan Loans

February 29, 2012

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In Retirement News for Employers (Winter 2012), the Internal Revenue Service (the "IRS") provided guidance on interest charged on plan loans. Here is what the IRS said. What is a Reasonable Interest Rate? When a retirement plan allows loans to…

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Another Reminder of 401k Fiduciary Responsibility

February 28, 2012

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A recent court ruling found the trustee of a 401(k) plan in violation of his fiduciary duties for not honoring a direct rollover request submitted by a former employee (Klepeis v. Continue reading

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401k Plan Sponsors and the Risk of Fiduciary Liability

February 28, 2012

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Many plan sponsors have a ‘so what?’ attitude about their fiduciary risks regarding retirement plans. When you consider the majority of baby boomers ill prepared for retirement many will be looking for someone to blame. And why not their ‘rich’ employers? Plan sponsors do have the fiduciary responsibilities and risks. These fiduciaries are personally liable [...]

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Employee Benefits-IRS Provides Guidance On Matching Contributions To A SIMPLE IRA

February 28, 2012

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In Retirement News for Employers (Winter 2012), the Internal Revenue Service posited the following situation about an employer that maintains a SIMPLE IRA for its employees. Some of its employees started or stopped contributing to the SIMPLE IRA in the…

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Rare Court Decision Provides Glimpse at Current ERISA Fiduciary Thinking

February 28, 2012

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Earlier this month, the Southern District of New York U.S. district court issued what one blogger has called the “ERISA Decision of the Year.” In an era when cases typically are either dismissed or settled before the facts and law…

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8 Points to Consider Before Rolling Over a 401(k) to an IRA

February 27, 2012

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When a plan participant leaves an employer a number of options are available with regard to their 401(k) plan. Participants, in many cases will actually withdraw the funds and pay the penalty. This is a hugh mistake and jeopardizes their ability to successfully retire in the future. Seeking the advice of a tax and financial [...]

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BofA to Freeze Pension Fund

February 27, 2012

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As more and more companies from a pension plan to a 401(k) plan exclusively the quality in a 401(k) must be improved. The current model of the 401(k) is that of a supplement to a pension plan. This must change to ensure Americans will be able to successfully retire. Most business owners are far too [...]

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New retirement reality, longer life expectancy cause many to rethink planning for later years

February 27, 2012

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Most Americans rely on the 401(k) plan as their sole source of retirement. Unfortunately the plans today are assembled like the 401(k0 was a supplement to a pension plan. This must change for Americans to prepare financially to reach age 100. According to findings from a new survey from Merrill Lynch, 58% of affluent Americans [...]

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DOL fiduciary crackdown on retirement advisors underway

February 27, 2012

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Far too many financial advisors have sold 401(k)s as a lead generation tool. The 401(k) is a by product of their ability to sell high commissioned products to plan participants. Plan sponsors should be aware that allowing this action is another way of endorsing it. This could result in fiduciary liability. The 401(k) is far too [...]

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