Retirement benefits

Many employer plan sponsors are expressing a high level of interest in adding Roth 401(k) in-plan conversions as an option to their 401(k) plans in 2013. The recently passed Taxpayer Relief Act of 2012 made it possible for retirement plan participants to convert existing 401(k) plan balances to Roth 401(k) balances, whether or not the participant is distribution eligible.

The challenges confronting many retirement plan advisers are familiar.

New 401(k) loan transactions were down approximately 5% year-over-year, and total hardship and in-service withdrawals were down nearly 8%, according to Bank of America Merrill Lynch’s most recent 401(k) Wellness Scorecard, released Thursday.

Pressure is growing to change incentives for retirement savings as U.S. lawmakers look for revenue, and top earners may pay the price.

Try a little “brain-based sales and marketing,” suggests ASSPA’s Lisa Allen. Speaking about building a loyal client base this week at the ASSPA/NAPA 401(k) Summit, Allen offered the view that plan sponsors typically choose to work with an adviser because they find a “good personal fit,” then retroactively confirm that all of the objective and numbers-based reasons for that decision are in line.”

Principal Financial Group Inc., the seller of life insurance and retirement products, agreed to buy a 55% stake in Liongate Capital Management LLP to expand in hedge funds and meet demand for alternative investments.

It’s nothing new that Americans are working and living longer. But with 401(k)s, IRAs, Roth IRAs and the old money-under-the-mattress plan, what could possibly be added to secure Americans’ financial security? Pension Advisory Group thinks it has the answer — a new group long-term disability insurance product.

A new study released by insurance industry researcher LIMRA shows that half of defined contribution employees are still not aware of how much they pay in annual fees and expenses, despite fee disclosure requirements added in 2012.

There is a general belief that advisers acting as fiduciaries to a 401(k) plan would violate ERISA if they advise participants on IRA rollover opportunities and wind up managing those rolled over funds. That opinion is not surprising, according to ERISA attorney Marcia S. Wagner of the Wagner Law Group. But it is not necessarily correct.

Once the province of only large plans, ERISA Accounts have found their way into the small plan market. And if you’re an advisor working in that market, it can be an important tool for you to add value to plan sponsors.

We’re starting your week with three important facts, developments or conversations from recent and upcoming events. This week, we look at the new IRS guidelines, final ruling from CMS on MLR ratio and what’s going on in Europe with retirement taxes.

Opponents of a European Union financial-transactions tax say pension funds will be hurt even if their home governments don’t sign up.

“Make an Impact,” the theme for the 2013 NAPA/ASPPA 401(k) summit that began yesterday in Las Vegas, may have sounded more like an exhortation to the nearly 1,400 pension professionals attending the event -- but an appeal that many appear to have every intention of acting upon. Threats to the 401(k) from Washington were chronicled in the opening session by ASPPA CEO Brian Graff and others.

Odds are strong that many of your clients’ 401(k) plans could have significantly greater assets even without spectacular investment performance or a dramatic increase in salary deferral rates.

Overcoming employee inertia in retirement savings with effective plan design by Unified Trust’s Lee Topley.

How agents can help highly compensated executives save and remain competitive with safe harbor 401(k) by John Ludwig

Many employer plan sponsors are expressing a high level of interest in adding Roth 401(k) in-plan conversions as an option to their 401(k) plans in 2013. The recently passed Taxpayer Relief Act of 2012 made it possible for retirement plan participants to convert existing 401(k) plan balances to Roth 401(k) balances, whether or not the participant is distribution eligible.

“Those with an income shortfall are far more likely to be low-income, low-asset households, and they spend down their liquid assets at a far faster rate than households that do not have an income shortfall,” says one expert with the Employee Benefit Research Institute.

Employer applications are now being accepted for the 2013 Financial Fitness Challenge, an engaging and effective online financial education program made available by Employee Benefit Adviser and /i>.

How many Gen X and Gen Y consumers are saving for retirement? Not nearly enough, according to LIMRA, an industry-funded research group.