Q4 Newsletter: Strategic Thinking Edition

As we begin to say goodbye to 2021, let’s look forward to the new year by addressing employee financial habits after COVID, how a K-shape economy is impacting your workplace and how your retirement plan committee plays an important role in helping employees pursue retirement plan goals.

Explore these topics and their implications for employers in helping employees save in the Q4 Newsletter – Strategic Thinking for Plan Sponsors.

Plan Sponsor Newsletter: Strategic Thinking

 

 

This information was developed as a general guide to educate plan sponsors and is not intended as authoritative guidance or tax/legal advice. Each plan has unique requirements, and you should consult your attorney or tax advisor for guidance on your specific situation.

©401(k) Marketing, LLC. All rights reserved. Proprietary and confidential. Do not copy or distribute outside original intent.

Are You Among the 38%?

December 7, 2017—A record number of 401(k) and 403(b) plan sponsors – 38% – are actively seeking new plan advisors, according to a recent Fidelity Investments survey. That’s not a surprise given changes in the retirement plan industry. Among other things, the Department of Labor’s new Fiduciary Rule requires employers to confirm their advisors are acting as fiduciaries and in the best interests of their clients. Advisors who are unprepared have caused some employers to interview other advisors.

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408(b)2 Disclosures and the Fiduciary Rule

November 4, 2017—408(b)2 Provider Disclosures have created confusion for employers who sponsor 401(k) and 403(b) plans ever since the rules first requiring them took effect in 2012. To make matters worse, with the June 2017 effective date of the Department of Labor’s Fiduciary Rule, employers’ responsibility with respect to the disclosures increased.

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401(k) Fees: Participants’ Best Interests May Not Be Served by the “Race to the Bottom”

September 6, 2017—There’s good news for employers! Many have been on edge as they read about the “excessive fee” lawsuits filed against retirement plan fiduciaries, some of which have made their way to the U.S. Supreme Court. Or they’re shaken as they hear about the detailed fee document requests and questions from Department of Labor auditors to 401(k) and 403(b) plan sponsors and the fines and penalties that can result from DOL investigations.

While lawsuits and investigations have served a purpose in lowering plan fees, a side effect is that many plan sponsors, in their concern to meet compliance standards, have made a search for the lowest fees such a priority that they have unwittingly overlooked the best way to serve plan participants! In fact, when I meet with employers, they often first tell me they need to reduce plan fees to create a “hedge of protection” for themselves.

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