Tag: Retirement Plans

The Supreme Court Tibble v. Edison International Ruling – Who is the fiduciary on your plan?

On May18th, 2015, the Supreme Court released its ruling and written commentary on a landmark ERISA case, Tibble v. Edison International. Employees of Edison International accused their employer of favoring high-cost mutual funds over lower-cost options. The Supreme Court unanimously ruled that it is an ongoing responsibility of plan fiduciaries to monitor their investment fund line-ups and remove inappropriate investment offerings. The Court went on to say this is a duty apart from the investment selection… Read More

10 Changes to 401(k) Plans Employers Should Consider

Industry trends within 401k plans continue to heavily focus on implementing plan improvements and providing guidance to help ensure participants are meeting their retirement savings goals.  Studies show many employees face significant financial burdens throughout their working lifetimes, from buying a home, saving for college, paying for healthcare, and preparing for retirement. Helping employees put their financial situation in order not only helps them save for retirement, but can also decrease stress and promote a… Read More

Are You Paying Too Much in Fees in Your 401(k) Plan? Most Likely!

This is an excellent article in the New York Times describing how the fee structure of  401k plans remains somewhat opaque at the expense of plan participants. Employees need to understand the fee structure in their plan and employers need to ensure that they have met their fiduciary responsibilities to the plan participants. Plan Sponsors should obtain an independent benchmarking analysis of their plan's total all in cost. This is best approach to avoid potential… Read More

Will 401(k) Participants be Able to Sue?

As covered by Bloomberg News, an appeal currently in front of the U.S. Supreme Court will consider giving 401(k) participants more power to sue their plans over investments that impose excessive fees. The appeal, filed by Edison International workers, contends that participants should be able to sue plans for retaining imprudent investments. A federalappeals court said a federal statute of limitations bars suits over investments added to a plan more than six years earlier. The case… Read More

Why Small Firms Should Consider Setting Up 401(k)s

A recent study by SurePayroll, a company that provides payment services, found that more than 70% of small firms didn't offer a 401(k) plan to their employees. Why offer a plan:  The obvious reason is to attract and retain workers. Following salary and health coverage, retirement benefits are the third-most-important factor in driving employee loyalty in small businesses, according to a 2012 Metlife study. Read More

Finding Income Despite Low Intereste Rates

With interest rates so low, where can investors look for decent income?    Think Before Reaching for Yield.    Reaching for yield is the dominant activity of the day among investors. The 30-year decline in interest rates has been topped off by the Federal Reserve's explicit action to punish savers and push them to take more risk.   The most prudent thing to do right now might be to accept less income and take lower… Read More

Your Money, Safety and Health Matter$

High-income earners are being hit with new taxes this year, but they also have options to minimize the impact of the tax hikes.Couples earning $250,000 ($200,000 for singles) will be paying an extra 3.8% on investment income, known as the Medicare tax. Couples earning $450,000 ($400,000 for singles) face the new 39.6% tax bracket as well as a 20% tax on long-term capital gains and dividends. There are also phase-outs of exemptions and phase-downs of… Read More