Every once in a while I’ll start to wander off into “Pensionspeak” when I’m talking to a client. And when I do, I’ll catch myself by remembering what one of our important business partners once told me when I started to get too technical. Or even technical at all depending on the audience. He told … Continue Reading
I was honored to be a guest speaker today to The Lake County Estate Planning Council. The group is an interdisciplinary organization for professionals involved in estate planning to better serve the needs of the public in estate planning. The title of my presentation is: LIFE INSURANCE IN QUALIFIED RETIREMENT PLANS: The Impact of the New … Continue Reading
If you’re a TV reality show fan, you’ll recognize the quoted part of the headline as the opening from Bad Boys, the theme from Fox’s long-running show COPS, by Inner Circle, the Jamaican raggae group. The second part of the headline can be viewed as life imitating art. As the economy tanks, crime rises. Marc Tracy … Continue Reading
There has been as lot of discussion and media attention on the impact of the financial markets’ meltdown on 401(k) accounts – most of which was either anecdotal or generalized. For example, much commentary that in 2008 during which major U.S. equity indexes were sharply negative, with the S&P 500 Index losing 37%, participants in … Continue Reading
We welcome a new blog to the employee benefit blogging community. It’s the Business of Benefits, the focus of which is issues facing insurance companies, financial service providers, and plan sponsors. It’s being published by the law firm of Giller & Calhoun. The named partners are Evan Giller in New York City and Monica Dunn Calhoun, Denver. Bob Toth in Ft. Wayne, Indiana … Continue Reading
No, not the academy awards. Too early for that. But this post is about the ostrich-like approach 401(k) participants have taken in opening (or rather not opening), their December 31, 2008 statements. Earlier this month, I posted the visual below about participants’ hesitation, Just Get It Over With, from Jessica Hagy’s award winning blog, Indexed, … Continue Reading
Remember that kids’ game, Animal, Vegetable, or Mineral? You had to guess into what category the object fell. Well, today in business, there is a similar question. Independent contractor or employee? But it’s not a game. The misclassification of a worker can have serious financial consequences. Penalties and interest involving payroll taxes can pile up … Continue Reading
Unless you’ve been asleep, compliance with fiduciary responsibilities is one of the highest priorities of the U.S. Department of Labor (DOL). And if you’re a small employer, it can be a difficult and challenging assignment to be responsible for a retirement plan. But here’s some help. The DOL will be sponsoring a free seminar in … Continue Reading
Last week in a blog post about self-directed brokerage accounts, I wrote about participants just starting to open their year-end 401(k) statements with some (or much) hesitation. But here’s Jessica Hagy in her award winning blog, Indexed, whose picture, Just get it over with, is far more effective than my words about hesitating to get … Continue Reading
Transparency has several meanings. In optics, transparency is the material property of allowing light to pass through. When used in a social context, transparency implies openness, communication, and accountability. In the 401(k) industry, transparency means fee disclosure. And, of course, it’s what Congress and the Department of Labor have been focusing on over the last few years. But … Continue Reading
Just about now, 401(k) participants are starting to open their year-end statements. Some because they’re just starting to receive them, others because they’ve decided it’s now time to confront the harsh reality of substantially diminished account balances. That is, if they haven’t already gone on-line (how many times?) the last quarter. But, of course, the … Continue Reading
With a new Administration and a new Congress about to take over, we’re going to start to see the think tanks and not-for-profit organizations issuing research and recommendations regarding public policy for retirement plans. One of those organizations is the National Institute on Retirement Security (NIRS), a not-for-profit organization whose stated mission is to “encourage the development of public … Continue Reading
Over at Slate’s BizBox blog, a special promotion by Open from American Express, I posted an article that discusses the financial advantages of a “Solo-K” for someone who is self-employed. In fact, “Solo-K” is not specifically mentioned in the Internal Revenue Code. It’s a name given by some unknown, creative marketing person to describe a profit sharing plan with a … Continue Reading
I was one of those commentators who ended last year on a “glass half empty” note when I characterized the 2008 retirement plan year as The Good, the Bad, and the Ugly. Some commentators like Mark Miller were much more direct. Mr. Miller ended the year in his column that appears on his website, RetirementRevised, … Continue Reading
Over at Slate’s BizBox blog, a special promotion by Open from American Express, I posted an article that discusses one of the things it takes for business owners to be able to make retirement plan contributions. Check out Be A Park-Down-The-Street-Businessperson.… Continue Reading
A Risk Management Tool for Fiduciaries in A New Retirement Plan Environment Updated for the Pension Protection Act of 2006 (PDF) Introduction My last post was a year-end ERISA fidelity bond reminder. ERISA does not require liability protection; the only mandatory insurance is an ERISA Fidelity bond to protect the plan assets from losses due to misuse or … Continue Reading
Last July, I asked the question will Form 5500s reveal outdated fidelity bonds or retirement plans without bonds at all. That was prior to the July 31st due date (unless extended) for calendar year retirement plans required to file Form 5500 for the 2007 plan year. And, I noted, as in the past, there will … Continue Reading
Over at Slate’s BizBox blog, a special promotion by Open from American Express, I posted an article that discusses the pros and cons of borrowing against your 401(k) account. Check out Your 401(k); Another Way to Borrow.… Continue Reading
It’s that time again. The 401(k) safe harbor notice requirement of December 1 is fast approaching. And if you’re a plan sponsor still undecided about whether you want to have a Safe Harbor 401(k) plan for 2009 because of economic uncertainties next year, then you can take advantage of a safety value that’s permitted by … Continue Reading
I’m pleased to announce that I am now a regular contributing author for BizBox by Slate, a special promotion by OPEN from American Express. I’m one of 5 contributors whose focus is helping business owners manage and grow their businesses. Come visit us.… Continue Reading
Saturday’s post, Balance Forward 401(k) Plans: Someone’s Gotta Win, Someone’s Gotta Lose, generated several emails to me on the topic. The comments involved frequency of the valuation and whether interim valuations could or should be done. Let me see if I can respond to all of them at one time. First, some additional background. Balance forward recordkeeping was … Continue Reading
Balance forward 401(k) plans may seem like an arcane topic for a Saturday morning even if you’re a pension person. But if you’re a plan sponsor or a 401(k) plan participant, today’s investment climate is not a good time to be part of one. Let me explain why. Balance forward is an industry term given … Continue Reading
Every year the Internal Revenue Service releases cost of living adjustments to applicable dollar limits for retirement plans. Here is a link to a chart (pdf) that summarizes the most frequently used limits.… Continue Reading
