PLANSPONSOR Weekend Newsdash
Week ending September 23rd, 2016
Happy Friday, readers! This week’s mailing takes a close look at some of the most pressing compliance issues from the perspective of DC specialist plan advisers. Trusted ERISA experts outline the new standards for making referrals under the fiduciary rule, discuss opportunities and challenges related to sweep programs, and outline the shifting taxation requirements associated with 457(f) plans. 
Editor's choice
Referrals Under the Final Fiduciary Rule
The rule provides that recommending a fiduciary investment adviser to an IRA owner in exchange for a referral fee, such as a solicitor’s fee, is a fiduciary act. And, under the rule, virtually every adviser will be a fiduciary. Read more >
Don’t Forget About Sweep Programs
A sweep program, fund or similar device is a common means used by retirement plan advisers and their affiliates to hold account assets on a short-term basis pending an investment or other transaction. These programs may give rise to prohibited transaction issues under the Internal Revenue Code or the Employee Retirement Income Security Act.  Read more >
Government Plans Will Receive Face-Lift
Unlike 457(b) plans and tax-qualified plans such as 401(k)s, there is no limit on the amount that may be deferred under a 457(f) plan. However, 457(f) plans suffer an important disadvantage when compared with those other types of plans; specifically, the amounts deferred are taxable to the employee when they become vested, rather than when they are paid to him. Read more >
The 'Threat' of the PPA
Thanks to the Pension Protection Act of 2006, we are able to assume that most plan sponsors can add automated plan features if they are interested, and we often question why a plan wouldn’t be interested in such a design feature. Read more >
Besides getting people participating in retirement plans, the PPA also provided employers with a chance to improve employees’ asset allocation. It opened the floodgates for target-date funds and set the stage for a high level of comfort for plan sponsors to use TDFs as the qualified default investment alternative. Read more >
Advisers Beware and Be Cautious When Talking Taxes in 2018

During a webinar called to discuss the advisory industry impacts of the Tax Cuts and Jobs Act, experts warned advisers to be ready to decline to offer tax advice during 2018—over and over again.

Confusion Abounds After Fifth Circuit Decision Vacates DOL Fiduciary Rule

The latest decision out of the Fifth U.S. Circuit Court of Appeals throws a dramatic new element of confusion into the epic regulatory saga that has been the rollout of the Department of Labor fiduciary rule.

Three Quarters of Americans Have Not Planned for LTC Needs

Yet nearly six in 10 say saving for long-term care is a financial priority

HSA Knowledge Gap Offers Clear Adviser Service Role

Health savings accounts are often described as the 401(k) of health care—so it is only natural that retirement specialist advisers can play an important role in educating the public about these important savings vehicles; survey data shows more education and advice is desperately needed. 

Advisers Moving to a Client-Centric Model

Advisers are using new planning models and smarter technology, including automation, so that they can offer personalized service, SEI finds.

Editorial: Alison Cooke Mintzer

Advertising: Paul Zampitella

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