Why the 'disconnect' between the economy and your 401(k) could persist The stock market has a serious lot working against it at the moment: fresh doubts about the economic recovery, a rebounding dollar and the general sense that share prices are overdue for a pullback after a nearly eight-month-long advance. Source: Los Angeles Times

Crisis didn’t scare workers away from 401k plans, Schwab finds Last year’s financial crisis didn’t scare workers away from their 401k plans, new data from Charles Schwab show. In retirement plans managed by Schwab, 77 percent of eligible workers participated at the end of 2008, up from 73 percent a year earlier.

Solo 401(k) Offers Big Tax Savings For Self-Employed How would you like to put away almost $50,000 in your own 401(k) plan?  Well, if you’re self-employed, you should check out the solo 401(k). It provides opportunities for large retirement plan contributions, and there’s still time to open one for 2009. Source: CBS Money Watch

Companies Start to Phase Back in Matching on 401k One of the easiest ways for companies to cut costs during the height of the recent recession was to reduce or eliminate the matching contribution that they provided to their employees' 401k or other retirement plans. But there is growing evidence that many companies are resuming their 401k matching. Source: San Diego Daily Transcript

Increasing Number of Employers Plan to Reverse Reductions of 401k Match Watson Wyatt reported that a recent survey found that an increasing number of employers are planning to reverse reductions to 401k match contributions. Source: 401khelpcenter.com

Most 401k Investors Don't Read Investment Information Two-thirds of 401k participants don't read investment information provided by their plan executives a surprising finding given the calls by some legislators for DC plan executives and money managers to provide participants with more fee disclosure and financial information. Source: Investmentnews.com

What Sponsors and Advisors Should Know About Retirement Plans According to a 2007 U.S. Labor Dept. survey, 68% of small business owners feel unprepared for retirement and just 42% maintain a retirement plan. Here are four frequently overlooked tips about retirement plans for plan sponsors and their advisors. Source: Businessweek.com

Senate Aging Committee on Target-Date Funds Video and written testimony of the Senate Special Committee on Aging October 28, 2009, hearing on the use of target-date funds. Source: Aging.Senate.gov

NAIRPA Comments to Senate Aging Committee on Target-Date Funds The National Association of Independent Retirement Plan Advisors submitted these comments for the record to the Senate Special Committee on Aging's hearing entitled, "Default Nation: Are 401k Target-Date Funds Missing the Mark?" Source: ASPPA

DOL Official Testifies Before Senate Aging Committee on Target-Date Funds Overview of testimony by Phyllis C. Borzi, assistant secretary of labor for the DOLs Employee Benefits Security Administration, before the Senate Special Committee on Aging on the use of target-date funds as investment options for 401k-type plans. Source: US Department of Labor

Effects of the 401k Fair Disclosure and Pension Security Act This article from the New York Law Journal discusses how employers providing 401k plans to their employees will be affected by the 401k Fair Disclosure and Pension Security Act of 2009 in the realm of fee disclosure. Source: Patterson Belknap Webb & Tyler LLP

New Data Reveals Increase in 401k Plan Participation Charles Schwab released new data showing the number of workers participating in 401k plans increased even as the stock market declined and the economy weakened. In addition, most 401k plan participants continued to receive matching contributions from their employer. Source: 401khelpcenter.com

MassMutual's Plan Data Shows Participants 'Highly Engaged' MassMutual's Retirement Services Division released data indicating that participants in retirement plans administered by MassMutual are highly engaged in planning and saving for retirement. Source: 401khelpcenter.com

Survey Reveals Healthcare Retirement Plans Are Being Redesigned in a Dynamic Market Market volatility and regulatory requirements were the driving forces behind healthcare retirement plan sponsors' actions in 2009. According to a just-released survey of healthcare employers, more than one-third (37%) said that implementing a new fiduciary process associated with the new 403(b) regulations that went into effect earlier this year was their primary challenge. Source: 401khelpcenter.com

Automatic Enrollment Shows Promise for Some Workers; Other Workers Could Face Challenges Because of questions about the extent of retirement savings and prospects for a sound retirement for all Americans, GAO was asked to determine (1) what is known about the effect of automatic enrollment policies among the nation's 401k plans, and the extent of and future prospect for such policies; and (2) the potential benefits and limitations of automatic IRA proposals and state-assisted retirement savings proposals. To answer these questions, GAO reviewed available reports and data, and interviewed plan sponsors, industry groups, investment professionals, and relevant federal agencies. Source: GAO

The National Retirement Risk Index: After the Crash A new update of the National Retirement Risk Index quantifies the impact of the recession of 2008 and 2009 on retirement readiness for households across the United States. The Center for Retirement Research at Boston College released this update of the NRRI that shows a seven percentage-point drop in the share of households that are positioned to maintain their current standard of living in retirement. Source: Center for Retirement Research at Boston College

SEC Will Begin Scrutinize Risks Related to Retirement Products Responsibility for identifying potential risks related to investing in retirement investment products will fall primarily on the SEC's newly formed division of risk, strategy and financial innovation. That unit, which was formed last month, combined the agency's office of economic analysis and its risk assessment division. Source: Workforce.com

Interpretive Issue under Notice 2009-68 – Partial Rollovers The American Benefits Council is writing to urge the Internal Revenue Service to clarify the treatment of a partial rollover to an IRA of a distribution from a tax-preferred employer plan that includes after-tax contributions. Source: American Benefits Council

EBSA Webcast to Address Form 5500 Issues Plan sponsors (and "plan professionals," including advisers) looking to bone up on the new Form 5500 will have another chance to do so online. Source: Planadviser.com