401k Litigation Update

In 2016 and 2017, 107 complaints were filed with the DOL about 401k plans. This is the most since 2008-2009 according to Retirement Study done at Boston College. Some things are obvious- when markets fall, complaints tend to rise. These complains tend to fall with plans that were not being paid enough attention to typically, and resulted in “hundreds of …

Choosing Funds in your 401(k) Plan

A recent First Circuit Court of Appeals decision puts a special light on the fiduciary standards for selecting, monitoring and changing the investments in your 401k plan.   It also supports our ongoing approach to this for our clients.  For the full article, click here. “Moreover, any fiduciary of a plan such as the Plan, in this case, can easily insulate …

New Hardship Rules…

From Associated Pension Consultants: On November 14, 2018, the IRS released the proposed regulations on hardship distributions.  These proposed regulations provided us with insight into how the hardship distribution rules will be changing in 2019. These changes will impact 401(k) and 403(b) plans that offer hardship distributions. What are the main changes to the hardship distribution rules? Elimination of the …

2019 Retirement Plan Numbers released

The IRS on Thursday increased the pre-tax contribution limits for employees who participate in a 401(k), 403(b) and most 457 plans to $19,000 from $18,500. That limit also applies to the federal government’s Thrift Savings Plan. For participants ages 50 and over, the additional catch-up contribution limit, which is set by law, will stay at $6,000. Meanwhile, IRA contribution limits …

Make Sure You Take Sufficient Steps to Find Missing Participants

One more reason why discount 401k plan administrators are often not enough… Preferred TPA’s automatically roll your missing participants out according to the rules… “When searching social media sites, it may be necessary to follow the trail to the missing participant’s family and friends, known affinity groups or professional organizations, as well as any book, sporting, and retirement clubs the …

Another 401k suit

NAPA is reporting another fee-based lawsuit against a Plan Sponsor: “Yet another 401(k) provider and investment manager has been sued by one of its own participants for breaching its fiduciary duties to the plan – and while the claims are familiar, the venue is different. This time the target is Mutual of Omaha in a suit filed last week in …

Tax Reform affects 401k matching

Posted by John Sullivan on 1/26/18 in 401k specialist magazine:   The controversial tax reform legislation recently passed is paying off in the form of a boon for to corporate pay and benefits, and Willis Towers Watson is attempting to gauge just how much. The company surveyed a swath of large and midsize employers and found that nearly half (49 …

Human Resources Administrator found guilty in 401(k) Lawsuit!

In Tibble vs Edison International, a long-running case that ended up at the supreme court, The Human Resources VP was found guilty.  The case involved improper selection of funds – by using retail funds instead of the available institutional funds, which costs the plaintiffs $7,000,000.  Additionally, they used the retail fees to offset management fees charged by their record keeper. …

Small Businesses overpay for 401k plans

This article was published in MarketsInsider on 12/13/17.  Click Here for the full article. “America’s Best 401k took a closer look at the asset-based fees paid by small business owners and their employees and found that many overpay for their 401(k) plans… The industry has reported (on page 50 at the link here) a median cost for plans with 100 participants or more, …