It’s critical that plan sponsors consult with compliance professionals before adding the Deemed IRA feature.
Basic Members
By far, there’s almost universal agreement that 401k fiduciaries should be less concerned about investment performance than you might have seen a generation ago. Why is this so?
Not only do you need to watch the place that holds all the money, you need to watch the pipeline that feeds the money there.
If a fiduciary feels carrying out legal duties entails a high cost, there is an acceptable strategy for dealing with this, but the fiduciary must execute it before the client signs the contract.
Let’s not just blame certification providers. Government agencies responsible for monitoring and enforcement are also responsible for market confusion and the dilution of the “fiduciary” standard.
The story arc of the 401k mimics that of software. Each release adds to and builds on features and benefits over and above those of previous releases.
Documentation, due diligence, and other formal compliance matters are critical to reducing the fiduciary liability of 401k plan sponsors. But ultimately, they are responsible for safeguarding the assets of plan participants.
It might suit 401k plan sponsors and fiduciaries to tell this story of the generations to help the next generation avoid the mistakes of past generations. This tale provides many good tips about the dangers of investing in extremes, be they too conservative or too aggressive.
We asked retirement advisors from across the country whether they felt SECURE 2.0 had been over-hyped or represented a game changer. Here’s what they said on a few key issues.
The Top Ten “Must Read” FiduciaryNews.com Articles For The Three Years Ending 12/31/22!
We take a different approach by looking not too far back in the past. This avoids the “getting lost in the sauce of history” problem so many retrospectives have. It’s the opposite of the “recency” problem, where we place too much emphasis on that which lies closest to our memories. Often, instead, we’ll give more than proper weight to happenings in a distance that is rapidly losing relevance.