BPP401k.com Newsletter
July 9, 2008
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Pension Protection Act of 2006: Implementation and Aftermath - Summary: This five-section special report provides the insights of benefit experts on retirement plan administration in this post-PPA world as well as a look at how the PPA affects critical aspects of this important topic as the dust continues to settle. Located at: Thompson Publishing Group (PDF File). Click on headline for full article.
Thinking About a Roth 401k? Think Again - Summary: This article addresses the question of whether a couple with a moderately high income ($195,000 in the example) should opt for a Roth 401k, or instead continue to contribute to a regular 401k. Located at: Journal of Financial Planning. Click on headline for full article.
Employers Take to Roth 401k After Slow Start - Summary: More than two years after its creation, the Roth 401k is finally gaining traction in company plans, such as those managed by The Hartford, The Vanguard Group and Merrill Lynch Retirement Group. Located at: Investmentnews.com (free registration may be required). Click on headline for full article.
Taking a Closer Look at Target-Date Funds - Summary: A consultant at Russell Investments offers 12 nuggets of advice for selecting target-date funds for DC plans. Located at: Planadviser.com. Click on headline for full article.
On Target, Or Not - Summary: Think you can plunk down a client's money on any target date fund as a low-risk way to accumulate retirement savings? Think again. Located at: Financial Advisers Magazine. Click on headline for full article.
Shaking Off the Lump-Sum Mentality in Favor of Annuities - Summary: Behavior economics shows that when workers reach retirement, they prefer a lump-sum distribution. For many, purchasing an annuity is simply not that appealing. However, annuities do allow retirees to exchange accumulated wealth for a lifetime stream of guaranteed income. Located at: Employee Benefit News (free registration may be required). Click on headline for full article.
401k Fees on the Front Burner - Summary: Legislators and federal agencies plan to concentrate their efforts on addressing excessive 401k fees, and employers can expect to see new guidance on several retirement-related topics soon. Located at: Employee Benefit News (free registration may be required). Click on headline for full article.
Report Has Dismal News for 401k Savers - Summary: Even those workers contributing a decent amount of money to their company-sponsored plans aren't likely to meet their income needs for retirement, the Hewitt study finds. Located at: Workforce.com (free registration may be required). Click on headline for full article.
Widening Gap Between Retirement Needs and Employee Saving Behaviors Found - Summary: Rapidly growing medical costs, declining pensions and medical subsidies, longer life spans make 401k plans critical saving vehicles for U.S. employees, regardless of additional sources of income. Located at: 401khelpcenter.com. Click on headline for full article.
Court and Legislative Items
Legislative Tracking Chart -- Retirement - Summary: This chart summarizes selected federal legislation that would affect employer benefit programs. The bills included on the charts are based on judgments regarding the prominence of the issue, the likelihood of enactment, and the influence of the sponsors. Located at: Towers Perrin (PDF File). Click on headline for full article.
Plan Administration Items
The ABCs of Controlled Groups - Summary: Whether it's a parent subsidiary, a brother-sister controlled group, or a combination of the two, being a controlled group has an impact on qualified plan rules. Located at: McKay Hochman. Click on headline for full article.
Safe Harbor 401k Plan FAQ - Summary: McKay Hochman answers eight frequently asked questions about safe harbor 401k plans. Located at: McKay Hochman. Click on headline for full article.
DOL and IRS Items
Correcting Erroneous 401k Hardship Distributions - Summary: The IRS addressed how the plan sponsor should verify that the required conditions for the hardship distribution have been met, and what plan sponsors should do when it is discovered that such a distribution has been made without the conditions having been met. Located at: CCH. Click on headline for full article.
Informal Views of IRS - Summary: IRS and Treasury officials provide informal, non binding remarks about automatic contribution arrangements, late determination letter filings, and the definition of compensation under Code Section 415(c). Located at: Employee Benefits Institute of America. Click on headline for full article.
Headline News
DOL Obtains Settlement Restoring $2.2 million to Delphi Retirement Plan
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