IRS Eases Restriction on Student Loan Repayment in 401(k) Plans
The IRS released a private letter ruling (PLR) this week outlining how employers can provide a student loan repayment benefit as part of their 401(k) plan. This is a welcome development, as what is known as the contingent benefit rule has caused some confusion as to whether a student loan repayment program could be linked […]
Choices for the ‘Distribution Phase’ of DC Plans
View Our Paper It may be hard to believe, but the 401(k)—the most popular type of defined contribution (DC) plan—turned 40 this year. Up to now, the retirement industry has focused on improving the “accumulation phase” of DC plans. But as DC plans enter middle age, the retirement industry should start thinking more about the […]
DC Plans Can Help with a Demographic Crisis
With Social Security facing a demographic crisis, defined contribution plan sponsors should focus on the “decumulation” phase of their plans, when participants are drawing down their assets for income in retirement
ESG’s ‘Good Vibrations’? Not Yet for DC Plans
There is no shortage of interest around the environmental, social, and governance (ESG) space, but defined contribution plans remain somewhat skeptical about ESG options.
Enhance Your DC Plan with a “Mega Roth”
Plan sponsors who want to allow participants to contribute more Roth monies to a defined contribution (DC) plan than the standard limits have an option: The “Mega Roth,” an in-plan Roth conversion of after-tax contributions in the same year they are made to the DC plan. These contributions work like this: Participants defer up to […]
Evaluating Average DC Plan Fees
A new feature of Callan’s DC Index, the DC Fee Analysis chart, examines the effects of plan size, participant allocations, and vehicle utilization on investment management fees
Technology Challenges in Volatile Markets
During the recent market volatility, some larger defined contribution (DC) plan vendors experienced difficulty managing peak participant online access or transactional capabilities with their participant websites and/or trading platforms. Plan sponsors would benefit from reviewing their vendor’s technology to confirm it is adequate to support the plan and participants. .
Managed Accounts: ‘You Can’t Always Get What You Want’
Back in 1969 the Rolling Stones (inadvertently) summarized the state of decision-making facing plan sponsors regarding managed accounts. Due to limited product availability on recordkeeping platforms, plan sponsors may not be able to “get what they want.” But in looking at the choices they do have, they may be able to get plan participants “what […]
Callan DC Trends Survey (2018)
Full Survey Callan’s 11th annual Defined Contribution (DC) Trends Survey found that plan sponsors continue to focus intensely on fees. Sponsors, by a wide margin, cited reviewing plan fees as the most important step they took in improving their fiduciary position in 2017, and 60% of survey respondents said they are somewhat or very likely to conduct […]
Restructuring a Multi-Manager Plan: A Case Study
View PDF By Ben Taylor and Michael Joecken In the most recent edition of the DC Observer, we described the restructuring of a city-sponsored 457(b) plan with nearly $1 billion in assets that uses multi-manager funds. The revamping process examined the investment fund structure, participant enrollment, and investment management fees. In our article we detailed the steps […]