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.
Tag "SECURE Act"
More sophisticated plan participants who can afford to hire their own adviser. They don’t ask more from the plan. They ask for less, in hopes of gaining more control over their own destiny. For a variety of reasons, this isn’t as easy as some participants would like it to be.
Beyond the usual gestation period, here are some specific “trigger points” which plan sponsors have reacted to that have accelerated their decision to move into a PEP?
If you think the web of fiduciary duties is complex in a 401k plan that focuses on getting employees to save for retirement, imagine how much more intricate it becomes if the plan also has to cater to retired employees.
What’s the Goal? Last I heard it was preparation for retirement via tax preferred savings … but, looking around at what is typical industry practice, perhaps I have it all wrong.
In the end, though, you must remember the PEP is brand new. Not all offerings will offer the same advantages. Some may be designed specifically to forego one advantage to emphasize another.
Here things get a little familiar for companies with pre-existing stand-alone 401k plans (but may need to be discovered by those without plans).
Here’s something you don’t always see, but maybe you should.
Today, directly or indirectly (“back door”), every wage earner can contribute to a Roth IRA. So, to benefit your (great)(grand)child through “long term investing”, you might consider funding a Roth IRA and/or Roth 401k.
The Biggest 401k Fiduciary Fireworks, Fizzles, And Flops In 2021
Flops may not be forever. They may just be good ideas before their time. If you’re going to belittle them, you best hurry, because, if you wait too long, you may just discover they aren’t flops anymore. As a result, let’s not waste any time before the shelf-life of these flops expire.