401K Advisor articles from May 2006

401K Advisor archives from May 2006

FDIC increases retirement plan insurance to $250,000.
May 1, 2006... Effective April 1, 2006, the Federal Deposit Insurance Corporation (FDIC) increased the deposit insurance coverage on certain retirement accounts at a bank or savings institution to $250,000 from $100,000. It is the first increase in more...

Utah TPA's question will impact financial planners.(MATTHEWS ON 401(k))
May 1, 2006... A recent advisory opinion issued by the Department of Labor's Employee Benefits Security Administration (EBSA) may come as a big surprise to many personal financial planners and investment advisors who work directly with participants....

Fifth Circuit rules that plan participants may pursue breach of fiduciary claim: Milofsky v. American Airlines, Inc.
May 1, 2006... Has the Fifth Circuit Court of Appeals just made it easier for plan participants to bring breach of fiduciary duty claims? On March 2, 2006, the Fifth Circuit reversed its prior affirmation of the District Court's dismissal of the...

Foreign markets are often underserved and overlooked on 401(k) menus.
May 1, 2006... The total number of investment options in 401(k) plans continues to grow despite the potential confusion of participants. Unfortunately, the new options may not be adding much benefit. Investment Committees are rounding out the style boxes...

New requirements for mirror 401(k) plans.(Carol Myers of Myers & Shaw on 401 (k) plans)(Interview)
May 1, 2006... Plan sponsors who wish to "mirror" their 401 (k) benefits under an executive's nonqualified deferred compensation (NQDC) plan will need to evaluate the impact of new regulations for both section 401 (k) and 409A. This month we have asked...

TPAs growing as a distribution system.(third party administrators)
May 1, 2006... There is an emerging trend in the 401(k) marketplace. Many of the major investment providers with a "bundled" 401(k) product are now offering a competitive "unbundled" program that uses the services of an independent third party administrator...

DOL approves certain interest-free loans to plans.(Department of Labor)
May 1, 2006... Fully invested plans can sometimes run short of cash due to unexpected distributions and other required payments. The DOL has now made it a little easier for an employer to make a short-term, interest-free loan to address those short-term...

Regulatory & judicial update.(Table)
May 1, 2006... REGULATORY & JUDICIAL UPDATE Item Statement Status Deductions for Private Letter Ruling 200612018 The 25 percent combinations of ...

Will more of us be working forever? The 2006 retirement confidence survey.(INDUSTRY INSIGHTS)
May 1, 2006... Matthew Greenwald & Associates, Employee Benefit Research Institute (EBRI) and Temple University, April 2006 Editor's Note: The 16th Retirement Confidence Survey (RCS) from EBRI suggests that many American workers are not ready to...

404(c) not exclusive method of participant direction.(profit sharing regulated )
May 1, 2006... Feduciaries reading a recent Sevnth Circuit judgment should rest easier. That court ruled that 404(c) is not the exclusive method for fiduciary protection for investment of participant directed accounts. Thus, even plans attempting to meet...