PLANSPONSOR Weekend Newsdash
Week ending December 15th, 2017

Happy Friday, readers! We know that many of you will be closely following the news this weekend for the latest on the tax reform conference committee process unfolding in the U.S. House and Senate. Word within the Beltway is that the language of a compromise bill could emerge as soon as today. With this in mind, we have compiled below a timely series of articles focused on the intersection of tax law and retirement plan consulting. We encourage you to stick with throughout the coming week, as the GOP seeks to meet its self-imposed Christmas Day deadline for delivering major tax cuts.

Client Service - Tax Edition
Sponsors Think Rothification of 401(k)s Would Deter Participation
Seventy-eight percent of plan sponsors think that if 401(k) plans moved to Roth-only participant contributions, it would negatively impact participation, the Committee on Investment of Employee Benefit Assets Inc. (CIEBA) found in a membership survey. No members thought it would have a positive impact. Read more >
IRS Benefit/Contributions Limits for 2008-2018
Find here a link to our sister publication’s chart denoting the 2018 maximum benefit and contribution limits set by the IRS, including current and historical limits on all types of tax-advantaged retirement accounts. Read more >
NIRS Says Changes to Saver's Credit Would Help More Retirement Savers
Research from the National Institute on Retirement Security found millions of low- to moderate-income individuals have been unable to use the Saver’s Credit, because the primary requirement to file for the credit is contributions to a qualified retirement plan. Among individuals whose income makes them eligible for the credit, many lack access to retirement accounts at work and cannot save through payroll deduction. Read more >
IRS Makes Effort to Encourage Use of Pre-Approved Plans
The agency has made significant changes to its opinion letter program for pre-approved retirement plans. Read more >
IRS Agents: What They Look for When Examining Hardships
Not only will IRS agents look for proof that the hardship was for an immediate and heavy financial need, they will be looking to see if plan sponsors followed notification requirements and third-parties followed reporting requirements. Read more >
Few See Income Drop After Claiming Social Security
Economists Jessica Holland and Kevin Pierce of the Statistics of Income (SOI) Division of the Internal Revenue Service (IRS) also contributed to the new analysis, ICI says. The effort involved researchers analyzing tax data from 1999 to 2010, finding that the median worker had replaced 103% of spendable income after claiming Social Security. 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.

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

Wells Fargo Advisors SEC Filing Hints at Federal Fiduciary Investigation

The firm says it does not have additional information to share at this juncture beyond what has been noted in a 2017 year-end SEC filing; in that newly emerged document, Wells Fargo Advisors says it has begun an internal investigation into “whether there have been inappropriate referrals or recommendations” made by its advisors, including with respect to rollovers for 401(k) plan participants.

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.

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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