Each year you receive a “pass” or  “fail” from your service provider regarding required non-discrimination testing (the Actual Deferral Percentage test and the Actual Contribution Percentage test). The ADP/ACP tests govern the amounts of deferrals and/or matching contributions that highly compensated employees (HCEs) are allowed to make or receive in relation to those of non-highly compensated employees (NHCEs).   If you received a “fail” do no... [More]

When it comes to document storage related to your retirement plan, remember that your primary goal should be to preserve materials in a format allowing for quick and easy retrieval. It’s appropriate to store plan records electronically whenever possible. Also, be sure to retain an executed copy (or countersigned copy, as applicable) of each record and not the unsigned original that may have been sent to you for signature. While most providers can provide reports and current plan document... [More]

Style is important for two reasons. First, it helps us determine whether a plan is well diversified among its various investments. At the most basic level, it is important to have investment exposure in a broad array of asset classes, from U.S. Equity and International Equity to Fixed Income. Understanding a fund’s style within these asset classes allows the investor to be well diversified, or said another way, not have “all of his or her eggs in one basket.”

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Finally, the Department of Labor has issued the final service provider fee disclosure regulation, otherwise known as the 408(b)(2) regulation. In addition to removing the “Interim” tag on the regulations, a few changes were made to the disclosure rules and the effective date for compliance was moved back to July 1, 2012. The following are some of the newest changes to what have been referred to as the “reasonable contract” regulations: Certain 403(b)s excluded from t... [More]

The recent stock market turmoil combined with our litigious society is generating concern on the part of many fiduciaries regarding their potential exposure. Taking a casual approach to plan governance, without a formalized Committee Charter, will not help insulate the company or the plan fiduciaries from participants' complaints or lawsuits. [More]

Join 401(k) Advisors and Groom Law Group, Chartered for a 45 minute educational webinar as we discuss these developments and highlight the important take-aways for plan fiduciaries. [More]

Equity markets bounced back over the fourth quarter, finishing on a strong note, but leaving mixed results for the year. For the quarter, U.S. equity markets posted a strong positive 12.0% return (DJW 5000 Index), while the International equity markets posted a smaller, but still positive, 2.9% return (MSCI EAFE). International markets continued to struggle amid underlying debt issues faced by many countries located in the Euro-zone. These issues have also led to greater volatility in the U.S ma... [More]