COLLECTED WISDOM™ On 401k Case Studies
Crafting a Successful VCP Application - Summary: This case is important for two reasons. First, it emphasizes that establishing that retroactive amendment will not violate the non-discrimination rules is not the only IRS prerequisite for granting reformation. Second, this case demonstrates how to establish - by clear and convincing circumstantial evidence — the intent of the plan sponsor, even when the entity responsible for the drafting error is less than cooperative.
Located at: Reish Luftman Reicher & Cohen, May 2007. Click on headline for full article.
Law Firm Looks at Automatic Defaults - Summary: Research conducted told this plan sponsor that most employers still tend to offer a balanced fund or a money market fund to 401k enrollees who make no investment election on their own. Their financial adviser offered another solution instead -- using an age-based "lifestyle" or "lifecycle" fund as the plan default. By using this solution, the plan sponsor hoped to avoid the retirement planning nightmare of a 60-year-old and a 25-year-old defaulting into the same investment scheme.
Located at: Financial-planning.com, December 2004. Click on headline for full article.
How One 401k Vendor Improved Their Ability to Calculate, Track, Optimize and Reconcile Fees and Commissions - Summary: TPA's and other 401k plan vendors need to improve their ability to track, calculate, optimize and reconcile fees/commissions and optimize payable to distribution partners. In the end, this is the bottom line and a firm's ability to maximize profitability is potentially at stake.
Located on: 401khelpcenter.com. Click on headline for full article.
Three Ways to Deliver Investment Education - Summary: Some companies offer programs out of the goodness of their heart, or as part of their commitment to work/life programs, Arnone says. Others do it to avoid litigation by employees who find that they don't have enough money to retire because of bad investment decisions. Still others view investment programs as a way to get the most bang for their benefits buck. "Employers invest a lot of money in benefits programs," Arnone says. "Financial-education services help employees understand and appreciate the value of those programs, while helping them make better investment decisions."
Located on: Workforce via IFEBP. Click on headline for full article.
Streamlining 401k's - Summary: Investing in 401k's just keeps getting more complicated, as investors have to puzzle over an ever-growing number of fund choices. Fortunately, a small handful of employers have sought to help workers navigate through the noise. This article profiles two companies seeking to help workers invest better.
Located on: TheStreet.com. Click on headline for full article.
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