Expanding Use of Annuities in 401(k) Target Date Funds

Expanding Use of Annuities in 401(k) Target Date Funds

On Oct. 24, the Treasury Department and the IRS issued new guidance designed to expand the use of income annuities in target date funds (TDFs) in 401(k) and other defined contribution (DC) plans.

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Mid-Terms and More: A Look ‘Inside the Beltway’

Mid-Terms and More: A Look ‘Inside the Beltway’

In their September 2014 “Inside the Beltway” audiocast, attorneys Fred Reish and Brad Campbell of the Drinker Biddle law firm offered their take on the effect of upcoming mid-term elections on the retirement landscape and reviewed the status of several current retirement issues.  Here’s a capsulized summary.

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How Can We Improve Women’s Retirement Security?

How Can We Improve Women’s Retirement Security?

This post is based on Improving Women’s Retirement Security, my Washington Insights from earlier this year. This important issue warrants revisiting until the pieces are in place to help women achieve retirement readiness.

Although women may be at a greater risk than men of not achieving a secure retirement for many reasons, most face three major hurdles in trying to achieve retirement readiness.

  1. Women generally live longer than men — about five years longer at birth and almost three years longer at age 65. Most women have less income and retirement savings to finance those additional years, which often require greater out-of-pocket health expenses and long-term care and support services.
  2. Because women typically fulfill the role of caregiver for children and others, they’re more likely than men to work part time or in lower-paying occupations, have shorter careers and pass up promotional opportunities.
  3. The transition from a defined benefit (DB) to defined contribution (DC) retirement system has changed how retirement savings are passed on to widows. With a traditional DB pension, the default payout for a married couple is a joint and survivor annuity. But because DC assets are largely not annuitized in retirement, women whose assets aren’t managed to last their lifetimes are financially vulnerable.
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Don’t React … Read!

Don’t React … Read!

When dramatic or disruptive changes occur to mutual funds or other investment vehicles inside defined contribution plans, many sponsors want to be quick to react. And that quick response should lead them directly to their plan’s Investment Policy Statement (IPS).

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Retirement Revisited: Regulatory and Legislative Developments

Retirement Revisited: Regulatory and Legislative Developments

At a recent SPARK Institute Advisory Board meeting, attorneys Michael Hadley and Derek Dorn of the Davis & Harman LLP law firm reviewed these pending retirement-related regulatory and legislative developments, among others.

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Fee Simple: Understanding Your IRA Custodial Fee

Fee Simple: Understanding Your IRA Custodial Fee

This fee is aptly named. Just as a custodian maintains a facility, an IRA custodian maintains your account by performing a range of tasks for both you as the account holder and for the IRS. For this service, the custodian charges a custodian/trustee (C/T) fee, generally paid annually.

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