PLANADVISER Weekend Newsdash
Week ending January 25th, 2019

Happy Friday, readers! In this weekend’s newsletter we put a spotlight on the latest print edition of PLANADVISER Magazine. The issue features timely coverage of compliance matters, investment trends and client service strategies. In addition, top ERISA attorneys offer analysis of important regulations and court cases. We hope you will share some of what you read with a client or colleague.

Editor's choice
Cover Story: Smart Design
Striking the right balance between client service and profitability is more of an art form than a science, but it is an important exercise for every retirement plan advisory practice to utilize. Blue Prairie Group LLC took a deep look into this issue last year, tracking how many hours the team spent working on each client’s plan, who did what, as well as rating the difficulty of working with each client. Read more >
The SEC on Rollovers
The SEC says that an RIA is a fiduciary with duties of loyalty and care. That applies to all advice, including recommendations to take money out of a plan and roll it into an IRA with the adviser. To satisfy the duty of loyalty, the RIA must disclose conflicts of interest, including conflicts resulting from rollover recommendations. To satisfy the duty of care, the RIA should have policies and procedures for rollover recommendations that support the collection and evaluation of relevant information about the plan and proposed IRA and the assessment of whether the rollover aligns with the client’s profile. Read more >
Compliance News
The IRS has announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2019. Read more >
Retirement Income Options
From his seat on the Institutional Retirement Income Council (IRIC), John Pickett sees what he calls “the next frontier of the DC [defined contribution] business”: systematic distribution for participants from the retirement plan. And, as with automatic plan design, advisers are in a key position to urge plan sponsors to embrace it. Read more >
R-6 Share Classes Hit $1.5T
The zero/zero class has grown 15% since last year. Read more >
Addressing Participant Concerns
If a sponsor does not respond, it could risk a civil and/or DOL lawsuit. Read more >
Weathering Audits
The DOL has extended the scope of its examinations. What should plan advisers know about these audits, and how can they help a client that needs to undergo one? Read more >
MOST POPULAR STORIES
Walgreen Sued for Keeping Underperforming TDFs in 401(k)

Despite a market “teeming with better-performing alternatives,” the plaintiffs say, Walgreen selected the Northern Trust Funds, which already had a history of poor performance.

‘Stretch IRAs,’ Multigenerational Inheritance and the SECURE Act
Low and middle-income Americans struggling to save for retirement are depending on the U.S. Senate to pass the SECURE Act, advocates say. At present, one roadblock seems to the law’s treatment of “stretch IRAs.”
SECURE Act Ensnared in Senate After Flying Through House
Washington insiders say Senator Ted Cruz is probably the biggest roadblock to the SECURE Act being passed in the near-term under unanimous consent; among other issues, he wants the bill to allow people to use tax-advantaged 529 college savings accounts to pay for home school expenses.
IRS Private Letter Ruling Solves Crucial Annuity Transaction Friction Point

A new IRS private letter ruling essentially conforms the tax treatment of properly structured advisory fees from non-qualified annuity contracts to those paid out of qualified accounts, which typically are not treated as taxable distributions.

The DOL’s Fiduciary Race Ahead of 2021
There is precious little time remaining for the proposal and adoption of any new advisory industry conflict of interest rules that the DOL hopes to make effective during this presidential administration.

Editorial: Alison Cooke Mintzer alison.mintzer@strategic-i.com

Advertising: Paul Zampitella paul.zampitella@strategic-i.com

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