Independent Actuaries Blog Author: Independent Actuaries, Inc.
Bundled Service Providers, Investment Fees and 401k Account Balances
A small business owner using a bundled service provider for his/her 401(k) plan is akin to a farmer letting the fox guard the henhouse. Pete Kirtland writes that bundled service providers “don’t always pick…funds for the right reasons. They might … Continue reading
Save My 401(k)!
If you’ve listened to radio or watched TV in the last few months, you’ve heard the term “fiscal cliff” bandied about. The fiscal cliff the politicians and pundits are describing is the expiration of a number of tax cuts at the … Continue reading
Can the IRS Tell You When You Can Reasonably Retire?
Must a qualified retirement plan REALLY provide a normal retirement age that is not less than 62, unless it is “reasonably representative of the typical age for the industry in which the covered workforce is employed”? IRS Regulation 1.401(a)-1(b)(2), effective … Continue reading
Navigating Changing Governmental Accounting Requirements
The Governmental Accounting Standards Board (GASB) has recently approved, but not yet released, Statements 67 and 68, which will replace Statements 25 and 27, respectively. These Statements are related to the accounting and financial reporting for state and local governments … Continue reading
DOL’s Field Assistance Bulletin 2012-2 – The Growing Application of Fee Disclosure Regulations to Brokerage Account Windows
On Monday, the Department of Labor (DOL) issued Field Assistance Bulletin (FAB) 2012-02, a 23-page Q&A intended to interpret and explain the fee disclosure regulations which will require numerous disclosures to plan participants (who are able to direct their own … Continue reading
New Retirement Plan Limits for 2012
It’s hard to believe we’re in 2012 already! With the New Year, there are new retirement plan limits you should know about. Deferrals (401(k) salary deferrals) and catch-up deferral contributions are always limited on a calendar year basis. For 2012, … Continue reading
The Value of a Defined Benefit Pension Plan Rediscovered
One of the great financial scams of the last thirty years has been the replacement of traditional (Defined Benefit) pension plans with 401(k) plans. Somehow, the financial industry and a whole host of businesses have been able to convince their … Continue reading
Defined Benefit Plans – Helping Employees Retire
A recent University of Missouri study found that, among other things, pre-retirees with only a defined benefit plan are almost twice as likely to retire in any given year when compared to those with only a defined contribution (401(k)-type) plan. … Continue reading
Hidden 401(k) Fees: No Such Thing as a Free Lunch
I was assisting a small employer with the completion of a Form 5500 for a 401(k) plan the other day. The plan’s trust account holds roughly a million dollars. The plan’s trust account statements (produced by the mutual fund company where the … Continue reading
How to Take Full Advantage of a Cash Balance Plan Interest Crediting Rate
It is not intuitively obvious to potential participants that a 4% interest crediting rate in a cash balance plan today is an attractive retirement planning option. Only after the cash balance plan is considered as part of an overall retirement … Continue reading
