Making matters worse is the changing regulatory environment once the new SECURE Act 2.0 rules become effective. The good news is the dust settles after that.
Tag "QDIA"
Here the intent is to make it possible for a plan/IRA to apply the QDIA safe harbor to involuntary rollovers. But how will this impact plan participants?
Plan sponsors ought naturally to know how the plan addresses the needs of their business, but do they really know how to tweak the plan to improve outcomes?
The antiseptic compliance regime spelled out by the DOL and ERISA has to date defined fiduciary services. Perhaps, if we’re going to consider what is “beyond” that sterile definition, we might want to go back to the future. In a sense, rediscovering where “fiduciary” initially came from might suggest where it is headed.
This week is all about those wayward 401k features that are well beyond their expiration date. Careful, though. In the process, you’ll see what’s garbage to one is a work of art to another.
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.
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.
There are two strategic paths to use when it comes reducing liability. One approach occurs after the fact – after the target date funds are already in place. The other approach takes place before the target date funds are even placed on the 401k plan menu. Which is more reliable?
When considering the potential – if not underestimated – liability associated with TDFs, perhaps it’s best to listen to the warning Cialdini provides regarding Social Proof: “It should never be trusted fully… we need to look up and around periodically whenever we are locked into the evidence of the crowd.”
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