PLANSPONSOR Weekend Newsdash
Week ending August 5th, 2016
NOTE FROM THE EDITOR
Happy Friday, readers! In a recent conversation with PLANADVISER, one provider executive suggested she is “very optimistic about our industry’s chances of solving the DC retirement income question, but we’re only in the infancy of this effort.” The Department of Labor fiduciary rule will shape more than delay progress on improving individual retirement accounts and access to annuities, she speculates. In that spirit, collected below is a handful of articles on the best ways to use IRAs to shape and control retirement spending for clients.
Editor's choice
Spending Rates in Retirement Are Modest
When Vanguard first started its research on retirement spending, it assumed, as many financial planners do, that retirees look at all assets in all accounts and make a plan to draw down from all accounts. However, the research found four cornerstone accounts—DC plans, IRAs, mutual funds and brokerage accounts—are prized as long-term holdings. Read more >
Plan Participants Need Understanding of Roth Accounts
Many U.S. employers are missing out on an opportunity to help employees with their financial well-being by not offering or fully explaining and promoting the benefits and value of Roth 401(k) contributions, according to retirement experts at Willis Towers Watson. Retirement plan advisers can help them. Read more >
Clear Link Between Traditional IRAs and Rollovers
According to ICI data, at year-end 2014, nearly a third of Roth IRA investors were younger than 40, compared with just 15% of traditional IRA investors. There are significant differences between traditional and Roth IRA investors, yet both vehicles provide savers with important flexibility in their retirement savings options. Read more >
Rollovers Under the Fiduciary Rule
The new DOL fiduciary rule, which applies starting April 10, 2017, does allow you to provide distribution or rollover advice; however, there are special requirements for doing that. The first thing to consider is, what exactly constitutes fiduciary “advice” in this context. Read more >
Income Planning Requires Annuity Know-How
Two in three older advisory clients are seeking help with income planning, but only one-third of financial professionals actively advise about indexed annuities. Read more >
MOST POPULAR STORIES
Tax Bill Passed By Senate Backs Off 457(b), 403(b) Plan Changes

It appears some last-minute amendments have largely removed controversial provisions from the Senate’s version of tax reform legislation that would have had a big impact on governmental 457 and nonprofit 403(b) plan sponsors.

Pass-Through Tax Reform Impact on Small Businesses May Be Mitigated via Roth

The American Retirement Association says that tax reform could be a disincentive for small businesses to offer retirement plans; however, as one reader shares, there are counter considerations having to do with Roth 401(k) options that could mitigate some of the concern.

Settlement Ends Fujitsu Lawsuit Filed Over Plan Fees, Custom TDFs

In their lawsuit, the plaintiffs called the Fujitsu plan one of the most expensive in the country and specifically called out the design and implementation of the plan’s custom target-date funds.

CenturyLink Sued by Plan Participants Over Large Cap Stock Fund Construction

Plan fiduciaries are accused of breaching their duties in the design, management, operation and administration of an active large cap U.S. stock fund offered as a core menu investment option.

DOL Rule Provides Tailwind for Adoption of Outsourced Fiduciary Services

For the $5 million to $500 million DC plan market, advisers and consultants offering 3(38) discretionary investment advice are more common.

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

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

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