We recently processed a rollover from our 401(k) plan for a former employee who wants to roll her balance into her new employer’s plan. Shortly after the payment was processed, the former employee emailed us requesting either a copy of our plan’s IRS favorable determination letter or a signed acknowledgment that we have such a letter.
"To Roth or Not to Roth," that is the title question of Christopher Carosa's latest FiduciaryNews.com article about 401(k) rollovers.
We have a participant who is going through a divorce and told us that he will be submitting a Qualified Domestic Relations Order to assign a portion of his 401(k) account to his ex-spouse. It is our normal practice (which has been communicated to our participants) to charge the participant’s account for the fees associated with reviewing and approving the order as well as segregating the award for the ex-spouse.
More and more small, professional companies are interested in new comparability, or cross-tested, plans.
Our company sponsors a safe harbor 401(k) plan that provides for a dollar-for-dollar match up to 4% of pay. At the end of each year, we calculate the total matching contribution, and we usually make the deposit in the late summer. For example, we deposit the matching contribution for 2017 in August or early September of 2018.
Our firm sponsors a 401(k) plan that includes a 3% of pay safe harbor contribution. The plan also includes a profit sharing provision, but the only company contribution we usually make is the safe harbor.
Notice we didn't say new website. Though it's true the site is brand new—redesigned and reconfigured from top to bottom for you—that's not the most important thing that's changed.
Even as target date funds have become staples in 401(k) investment menus, there continue to be questions about their appropriateness as participants approach retirement age. Is the target date meant to be to or through retirement? Is the participant ahead or behind his or her savings goal? These are questions participant should answer to determine whether to stay the course or consider an alternate asset allocation.
Once primarily the domain of 401(k) plans of professional organizations such as law firms or medical practices, the self-directed brokerage window has become a more common option in plans sponsored by other types of business. But offering participants the ability to invest outside of the pre-determined fund lineup comes with its own set of additional fiduciary considerations.
Whether we’re talking fashion or music or architecture or barber shops, it seems things that have faded from existence eventually come back around. See if this cycle looks familiar: cutting edge becomes status quo becomes so last week becomes so [insert decade] becomes retro becomes vintage.
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