The Corona virus Aid, Relief, and Economic Security (CARES) Act became law on March 27. 2020. The Act contains retirement plan provisions to provide relief for participants affected by the current crisis. See below for a general summary of the … Continue reading
Independent Actuaries Blog
PPP Loans and Retirement Contributions
The hugely popular Payroll Protection Program (PPP) provides loans to small businesses that are ultimately forgivable if the funds are used to cover payroll costs and other specified expenses within the eight weeks following receipt of funds, so long as … Continue reading
DB Plans – Close vs. Freeze vs. Termination
In a recent blog we discussed concerns that defined benefit (DB) plan sponsors may have in the face of the COVID-19 outbreak. One of those concerns regards near-term contribution requirements that may be overly burdensome when coupled with severely reduced … Continue reading
CARES Act – Defined Benefit Plans
The Coronavirus Aid, Relief and Economic Security (CARES) Act passed the House of Representatives today and is expected to be signed by the President shortly. The CARES Act includes pension relief provisions that have an immediate effect on defined benefit … Continue reading
Hold Off Taking that RMD!
Participants in retirement plans are generally required to take Required Minimum Distributions (RMDs) beginning with the year in which they turn age 70½ (if that year was before 2020), or the year in which they turn age 72 (if that … Continue reading
You Get What You Pay For
We are not alone at IAI in having competitors who undercut us in price; it comes with being a part of a well-functioning democracy. One particular challenge we face, though, is a general misunderstanding of what it is we do, … Continue reading
Defined Benefit Plans Can Get Sick, Too
As has been well-publicized, the Coronavirus (along with other factors) has resulted in a steep financial market plunge this week. As of the day I’m writing this, the S&P 500 is down nearly 24% since the beginning of 2020, with … Continue reading
Congress Passes Retirement Legislation
Yesterday (December 19), Congress passed a spending bill containing sweeping retirement plan legislation, designed to allow and encourage Americans to save more. The portion of the legislation pertaining to retirement is called the Setting Every Community Up for Retirement Enhancement … Continue reading
Required Minimum Distribution Time
A reminder that Required Minimum Distributions (RMDs) are payable for anyone over the age of 70-1/2. These rules can be complicated. For money held in an IRA, 401(k) or Profit Sharing Plan, the amount of the distribution is based on … Continue reading
Are Retirement Index Funds Breaking the Market?
The fact that the largest market index funds hold a significant competitive advantage over smaller funds is undisputed. As fund management companies increases in size, the cost to manage their funds become a lesser percentage of the fund size, and … Continue reading