For ERISA fiduciaries, the challenge is clear: move beyond the default, and design a 401k plan that truly serves the diverse needs of its participants. In doing so, you not only safeguard retirement incomes but also reinforce the trust placed in you by those relying on your expertise.
Tag "Richard Bavetz"
The blend of traditional and modern retirement plan types could evolve further with SECURE 3.0.
Proposals focus on recalibrating the program’s benefit formulas and exploring new contribution models to secure future solvency. Proponents argue that modernizing these aspects will help the program adapt to longer life spans and changing economic conditions without sacrificing current commitments.
If you look at headlines in the retirement industry trade press, rarely does a week go by when you don’t see an article lamenting the low retirement savings numbers. How do we change this?
Ironically, while some see lowering the savings limit as politically palatable because it impacts only a small segment of the population, that same fact reduces the effect of such a policy shift.
As long as the fiduciary ball remains in the Executive Branch’s court, it’s easy to predict what will happen. That doesn’t mean, however, that we won’t see some surprises coming from the Legislative Branch.
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?
It’s tempting to turn your attention to your company, some academic theory, or even—hush!—“best practices.” The truth is, as a fiduciary, you only have one job.
This has been the most challenging of best practices. It has evolved over the years from “you can’t do that” to “you need to do that.” What does it take to make it better? Has the technology environment changed in such a way as to address long-standing obstacles.
Not only do pooled plans reduced the administrative burden, but they can also reduce the fiduciary liability for 401k plan sponsors. If you’re not constantly looking over your shoulder, you can spend more time with your nose to the grindstone.
