Archive for the ‘Uncategorized’ Category

Traditional Accounts Continue Sharing the Stage with Roth Accounts

Sunday, May 5th, 2019

Tax diversity among the benefits

As employers continue looking for ways to help employees retire securely, the Roth account has become a regular plan feature. In the five years starting in 2014, in fact, inclusion of a Roth account feature had increased 18.1%, so that by 2018, 72.7% of 401(k) and 403(b) plans included one. In the largest plans, those with more than $200 million in assets, nearly 8 in 10 plans now include a Roth feature.4

(more…)

The Importance of Financial Wellness

Sunday, May 5th, 2019

Surprising employer response in 2018

It’s interesting to compare changes year by year, but over time is when real results emerge. That’s often true in retirement plans; while there may be small, incremental changes in enrollment, investments and plan design one year to the next, comparing decades can be much more illuminating.

(more…)

May Checklist

Tuesday, April 30th, 2019

  • Monitor the status of the completion of Form 5500, and, if required, a plan audit (calendar-year plans).
  • Issue a reminder memo or e-mail to all employees to encourage them to review and update, if necessary, their beneficiary designations for all benefit plans by which they are
  • Perform a thorough annual review of the Plan’s Summary Plan Description (SPD) and other enrollment and plan materials to verify that all information is accurate and current, and identify cases in which revisions are

Back To “Normal”?

Thursday, April 25th, 2019

Young/new employees dive into stocks

Some benchmarks in the stock market have returned to where they were before the recent recessions, bubbles, and scandals. Others, though, may never be the same. Whether that’s good or bad you can decide for yourself.

Back in 2007, fewer than half of 401(k) plan participants then in their twenties invested their account balances in stocks. Flash forward to year-end (more…)

Trends That Impact Retirement

Tuesday, April 23rd, 2019

There are some trends that will impact retirement that you should watch, although some have been on our (and probably your) radar for the last few years.

The American Retirement Association (ARA) identified seven of them in a September 2018 presentation for ASPPA. Take particular note of litigation over plan fees. Several factors have emerged among plans undergoing (more…)

Are You Considering Retiring Overseas?

Tuesday, April 16th, 2019

There is a growing trend in Bermuda for pre- and post- retirees to consider moving to another jurisdiction for the last chapter of their lives instead of enjoying their retirement years on this island. The chief reasons are the possibility of a lower cost of living and/or a more adventurous lifestyle.

(more…)

Socially Responsible Options

Thursday, April 11th, 2019

What are the basics of socially responsible investing and how might it impact the fiduciary responsibilities?

When people refer to responsible investing, they often refer to ESG — environmental, social and governance. You may be surprised to learn that ESG investing has been around for more than 30 years; however, its popularity and importance have increased dramatically in the last decade.

(more…)

What is a deferred annuity?

Wednesday, April 10th, 2019

A deferred annuity is an insurance contract that exchanges a lump sum payment, or series of payments, for a guaranteed delayed future stream of income, installments or lump sum. Money inside the contract accumulates tax-deferred until it’s withdrawn. Returns can be variable (that is, based on market performance) or fixed. Savers sometimes use annuities to supplement income from their pension plan or Social Security. All annuity guarantees are subject to the claims-paying ability of the insurer issuing the contract, so it’s important to look closely at the strength and stability of the insurance company you’re considering.

Spring-Clean Your Finances: 10 Tips to Boost Savings

Wednesday, April 3rd, 2019

Spring-Clean Your Finances: 10 Tips to Boost Savings

Find areas in your budget that you may be able to live without.

Here are 10 quick and easy ideas for generating an extra $250 a month that can be used to pay down debt or redirect to your retirement savings:

(more…)

April Plan Sponsor Checklist

Wednesday, March 27th, 2019

  • If a plan audit is required in connection with the Form 5500, make arrangements with an independent accountant/auditor for the audit to be completed before the Form 5500 due date (calendar-year plans).
  • Audit first quarter payroll and plan deposit dates to ensure compliance with the Department of Labor’s rules regarding timely deposit of participant contributions and loan
  • Verify that employees who became eligible for the plan between January 1 and March 31 received and returned an enrollment Follow up for forms that were not returned.