The Internal Revenue Service (IRS) has issued a List of Required Modifications (LRMs) and Information Package
for use with prototype SIMPLE IRAs intending to satisfy the
requirements of Internal Revenue Code Section 408(p) and Section 408(a)
or (b).
The information package contains samples of provisions
that have been found to satisfy certain specific requirements of the
Internal Revenue Code as amended through the Protecting Americans From
Tax Hikes Act of 2015 (PATH). The IRS notes that such language may or
may not be acceptable in specific IRAs, depending on the context.
It
has prepared the package to assist plan sponsors who are drafting IRAs.
To expedite the review process, sponsors are encouraged to use the
language contained in the package.
By using this site you agree to our network wide Privacy Policy.
Trust
Builders, Inc. released its Sequence of Returns calculator with integration in
The Retirement Analysis Kit’s (TRAK’s) existing retirement needs analysis
calculators.
The
Sequence of Returns analysis evaluates a client’s retirement plan and assesses
the likelihood of possible success or failure based on a historical stock index
or a blend of indexes.
Retirement
planners often assign hypothetical rates of return to illustrate market
returns, but this method does not account for shorter periods of market
volatility and sequence risk, Trust Builders contends. Retirement funds
invested in the market may have both positive and negative rates of return at
different time periods. Lower or negative returns early in retirement may have
a more detrimental impact on future retirement cash flow.
The
Sequence of Returns calculator uses rates of return from a historical index to
illustrate the potential performance of retirement investments. It also
illustrates the historical success or failure for different retirement ages,
life expectancies and rates of inflation. The resulting reports use visually
engaging graphics to engage clients while explaining a complex subject.
“The
Sequence of Returns calculator is a great educational tool allowing advisers to
educate clients on market volatility and create realistic retirement
expectations based on historical data,” says Edward Dressel, president of Trust
Builders, the Dallas, Oregon-based developer of TRAK. “At Trust Builders, we
have been focused on retirement education for 30 years. While other fintech
providers are changing their products to meet DOL fiduciary rule requirements,
TRAK has had interactivity and education as its guiding principles since 1986.
For advisers looking for fiduciary tech solutions, TRAK is ready today.”
The
Sequence of Returns calculator augments TRAK’s suite of solutions that engage
clients in the retirement planning process. TRAK presents advisers with a
technological solution that satisfies the Department of Labor (DOL) fiduciary
rule requirements for interactive investment materials. TRAK also allows advisers
to incorporate multiple assets and income streams, thereby improving projections
of clients’ retirement income.
TRAK
features more than 20 calculators to educate clients about a wide variety of
financial planning topics including a full retirement needs analysis,
retirement plan contribution analysis, Social Security timing strategies,
participant benchmark reports and many more.
Retirement plan
managers and financial advisers interested in learning more about TRAK are
encouraged to visit www.AskTRAK.com, call
503-831-1111 or email support@AskTRAK.com.