According to the Callan Institute, an employee benefits research and investment consultancy group, the issue of high concern for defined contribution plan sponsors is that of retirement plan fees. Specifically noted in Callan’s 2019 Defined Contribution Trends Survey, plan sponsors have identified for the third year in a row that improvements in their fiduciary standing comes from a robust and thorough review of retirement plan fees.
CHICAGO, IL – February 18, 2019 – PlanPILOT is pleased to announce it has been named as one of the 2019 PLANADVISER Top 100 Retirement Plan Advisers.
The PLANADVISER Top 100 Retirement Plan Advisers is an annual listing of adviser individuals and teams that stand out in the industry in terms of a series of quantitative measures. These include the dollar value of qualified plan assets under administration (AUA), as well as the number of plans under advisement.
PlanPILOT was recognized in the “Small Teams With $1.8 Billion or More in Retirement Plan Assets Under Advisement” and “Small Teams With 115 Retirement Plans or More Under Advisement” categories.
Retirement plans can offer a few options regarding early access to saved funds. Under many employer-sponsored retirement accounts, plan participants may have been offered two early distribution options. One was under a hardship qualification and the other, if allowed, was a loan against the amounts they had vested in the plan. It’s important to understand what hardship distributions and loans are and how the funds may be used.
Millennials — loosely defined as those born between 1981 and 1996 — are quickly becoming the largest generation, slated to surpass Baby Boomers later this year. But unlike Boomers, many of whom are exiting the workforce with the proverbial three-legged retirement stool at their disposal (i.e. defined benefit plan, defined contribution and personal savings, and Social Security), the majority of Millennials haven’t saved a penny for retirement and likely do not have a pension plan, which makes it critical for plan sponsors to make efforts to increase millennial participation.
Employee retirement readiness is at the forefront of plan sponsor concerns. As a result, many plan sponsors are adding the option for Roth 401(k) contributions of their plan. Roth 401(k)s were first introduced in 2006, and while the adoption rate by employers was initially slow, it has since skyrocketed. As many as 70% of 401(k) plans now offer Roth 401(k) options, alongside the traditional 401(k). While the Roth 401(k) option is not for everyone, plan sponsors should consider providing this option to give employees additional retirement savings options. Having this feature as part of the employee benefits package will make your 401(k) plan more attractive and will allow your organization to remain competitive to attract and retain top talent. We have outlined important points to keep in mind if you’re considering adding a Roth 401(k) option to your plan.