PLANADVISER 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 PLANADVISER.com 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 >
MOST POPULAR STORIES
Education About Tax Treatment and Fees Could Boost 401(k) Participation

Findings from a Capital One survey about why employees do not participate in their employer-sponsored retirement plan offers opportunities for education, according to Stuart Robertson.

IRS to Focus on Retirement Plan Distributions and 403(b) Plan Rules in 2019

A Program Letter lists compliance strategies for the agency for next year.

How Rising Interest Rates Affect Stable Value Funds
While money market funds may look more appealing in the short run, this is not expected to last.
Inertia Remains a Plan Sponsor Problem, Too

The language of “inertia” and “disengagement” are often used to describe the natural state of retirement plan participants, but new research from Wells Fargo suggests plan sponsors are also prone to settling with the status quo.

Kaleida Health Faces 403(b), 401(k) Plan Fee Lawsuit

The complaint specifically calls out the 11 T. Rowe Price target-date funds (TDFs) offered by the plans, saying they are all adviser or retail class funds—as opposed to investor or institutional class funds.

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

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

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