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
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
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
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.
Like baby boomers and Gen X'ers before them, now it's the millennials' turn to be targeted for their lack of savings savvy for retirement. Some say they are stock-market averse, and others contend it's from watching their parents' hard-earned savings go poof over the past several years.
Despite a tough, volatile economy, 10 small to midsize companies have been able to run successful businesses while bringing stability to employees through strong benefits programs. These businesses have made Principal Financial Group's 10 Best Companies for Employee Financial Security—2011 list.Read More
Here's a quick glance at the differences between defined contribution, defined benefit and cash-balance plans.Read More
As of May, 30 percent of Fortune 100 companies offered a defined benefit plan to new salaried employees, down from 37 percent at the end of 2010 and 83 percent as recently as 2002. How are employees reacting to this change in their total compensation?Read More