Nearly half of defined contribution plan sponsors either offer or plan to soon offer some type of inflation protection strategy to their participants, a Mercer study shows. Stand-alone Treasury Inflation-Protected Securities, or TIPS, are the most widely used option, ahead of combining multiple asset classes.Read More
The revised technical release updates an interim e-disclosure policy issued in September allowing defined contribution plan administrators to provide fee-disclosure information to participants electronically.Read More
Two plans to cut the federal deficit could drastically change the tax treatment of 401(k) plans. The first, called the ‘20/20 cap,’ would limit annual 401(k) contributions to $20,000 or 20 percent of salary. The second would end tax deductions for 401(k) plans and replace them with a flat-rate refundable credit.Read More
As was the case in the prior fiscal year, the Pension Benefit Guaranty Fund did not incur any multibillion-dollar losses in fiscal 2011.Read More
Nearly 96 percent of participants enrolled in target-date funds in 2007 were still using them in 2009. And because more target-date fund products are in the marketplace, expenses are dropping. Despite their popularity and lower prices, target-date funds have their critics.
Target-date funds employ a mix of stocks and bonds that are put on a set glide path.Read More
Worker and employer contributions to a 401(k) plan are capped at $49,000 or 100 percent of a worker's pay, whichever is lower, under the current federal tax code.Read More
The U.S. Postal Service would get back $6.9 billion in pension overpayments and use some of that money to encourage at least 100,000 employees to retire early, according to a proposal announced Nov. 2 by a bipartisan group of senators.Read More
These websites have useful tools and information to help compare the differences between Roth and traditional 401(k) plans:Read More
A new survey from the Profit Sharing/401k Council of America shows that more employers are offering Roth 401(k) plans, but many employees aren't taking advantage of this tax strategy.