National Associates Inc

While government wants to make it easier for 401(k) plans to use alternative investments, plan sponsors worry they’ll get sued if they add anything unusual or complex to a retirement plan. In response, the Department of Labor (DOL) is proposing a way to protect plan sponsors from lawsuits related to investment choices. The DOL created a proposal that focuses on protecting fiduciaries from lawsuits. The proposal outlines a “non-exhaustive list of six factors for a plan fiduciary to objectively, thoroughly, and analytically consider” when selecting plan investments: risk-adjusted performance; fees and their value; liquidity; valuation; meaningful benchmarks; and complexity. https://lnkd.in/e7UfscQx

We are growing our team! We're hiring a Retirement Plan Consultant based in Central or Northeast Ohio. Join a team dedicated to helping employers and employees achieve their retirement goals while making a meaningful impact in the communities we serve. Apply today and grow your career with us. https://lnkd.in/g9k5zziN

The Department of Labor is reshaping how retirement plans communicate to ensure everyone gets critical information at regular intervals. The newly proposed rule under SECURE 2.0 would require retirement plans to provide at least one paper statement each year for defined contribution plans and one every three years for defined benefit plans. Additionally, plans must give notice explaining the right to opt out of electronic delivery. https://lnkd.in/ehnb9wvg

We are growing our team! We're hiring a Director of Retirement Plan Services based in Northeast Ohio. Join a team dedicated to helping employers and employees achieve their retirement goals while making a meaningful impact in the communities we serve. Apply today and grow your career with us. https://lnkd.in/g9k5zziN

The retirement industry is on the cusp of a significant transformation: private funds are moving closer to becoming mainstream options within 401(k) plans. This shift could open doors to new diversification and growth opportunities, but is their inclusion a wise decision by plan fiduciaries? Ferenczy Benefits Law Center provides a clear, practical analysis of what this means for plan sponsors. https://lnkd.in/ek6sxKhK

Wishing all a happy and safe 4th of July Weekend!

The Department of Labor (DOL) has asked to participate in a lawsuit’s oral arguments in support of the defendants (aka plan sponsor). (pause for impact) This signals how seriously the DOL views the ongoing issue of forfeiture usage in 401(K) plans and the growing number of related lawsuits. Hutchins v. HP is definitely a case to keep on the radar as the industry waits for more clarity. https://lnkd.in/eque2W-C

Removing a life insurance policy from a qualified retirement plan is permitted, but the process is nuanced. The participant must pay the plan an amount equal to the policy’s cash surrender value to complete the “swap out.” When handled correctly, this exchange is neither taxable nor reportable. Importantly, this is not the same as cashing out the policy or simply transferring ownership without a corresponding payment to the plan from the participant. The exemption requires a specific, compliant transaction structure. https://lnkd.in/e7gH5Mek

We are growing our team! We are hiring a 1) Director of Retirement Plan Services which will be based in Northeast Ohio and a 2) Retirement Plan Consultant based in Central or Northeast Ohio. Join a team dedicated to helping employers and employees achieve their retirement goals while making a meaningful impact in the communities we serve. Apply today and grow your career with us. https://lnkd.in/g9k5zziN

RMDs are series business. For an individual, a missed required minimum distribution (RMD) triggers a 25% excise tax on the shortfall not distributed. YIKES! This tax amount may be waived or reduced to 10% under certain circumstances. If an RMD is missed due to 401(k) plan error, it can create plan qualification failure. The plan may need to file a correction under the IRS’s Employee Plan Compliance Resolution System. https://lnkd.in/es2c2ME2