Digest
A 401k Tax Break That's Often No Break - Summary: Withdrawing company stock from a 401k to take advantage of a tax break called net unrealized appreciation sounds like a no-lose proposition, and most advisers tell their eligible clients to go for it. But there's just one big problem: When you run the numbers, this maneuver often doesn't pay off.
Located at: AICPA. Click on headline for full article.
U.S. Legislative Tracking Chart — Retirement - Summary: This chart summarize selected federal legislation that would affect employer benefit programs. The bills included on the charts are based on judgments regarding the prominence of the issue, the likelihood of enactment, and the influence of the sponsors.
Located at: Towers Perrin (PDF File). Click on headline for full article.
Changes to Distribution Rules for 2008 - Summary: Reviews distribution-related provisions of the Pension Protection Act of 2006 that are effective in 2008, including rollovers from eligible retirement plans to Roth IRAs, additional survivor annuity options, and interest rate assumptions for lump sum distributions. Also provides guidance regarding plan amendments for certain gap-period earnings.
Located at: McKay Hochman. Click on headline for full article.
Advice Efforts by Providers Go Unused - Summary: Although retirement plan providers supply investment education materials to 56% of participants surveyed by Spectrem Group, only 12% said they refer to these materials on a regular basis and 22% never use them.
Located at: Plansponsor.com (free registration may be required). Click on headline for full article.
Ten Year Doubling in Retirement Assets - Summary: Despite difficult market conditions, assets that are held in U.S. retirement plans have nearly doubled in value since 1997, according to a study conducted by Watson Wyatt Worldwide.
Located at: Financial-planning.com. Click on headline for full article.
How to Launch Your Company's 401k Plan - Summary: This feature contains a step-by-step guide to picking a plan, a primer on the fees you can expect to pay, questions to ask a prospective investment adviser, and resources for further inquiry.
Located at: INC Magazine. Click on headline for full article.
Debt Impeding Retirement Savings - Summary: A new survey found that 43% of non-retirees said debt affects their ability to save for a comfortable retirement "a great deal," while 32% of non-retirees said debt forced them to cut back their retirement savings.
Located at: Planadviser.com. Click on headline for full article.
The 401k Loan Danger - Summary: The credit crunch has come home to roost in many unlikely places, from the student-loan market to the municipal-bond arena. Here's another improbable victim: your human resources department.
Located at: CFO.com. Click on headline for full article.
Fiduciary Fitness - Summary: Although you already may have given up on your New Year's resolution to get fit, you still can follow through with your resolution to make sure all of your fiduciary ducks are in a row for this year. This article outlines some important steps that you should consider.
Located at: Plansponsor.com (free registration may be required). Click on headline for full article.
Research
The Influence of Time Diversification on Horizon-Based Asset Allocations - Summary: Academic opinion is divided over the existence of time diversification—the premise that investments in stocks are less risky over longer periods. This new Vanguard white paper examines the empirical research on this subject.
Located at: Vanguard Investment Counseling & Research (PDF File). Click on headline for full article.
2008 Treasury & Risk Retirement Survey - Summary: With pressures mounting on retirement plans from a growing population of old people and sweeping changes in accounting rules, finance executives in the 2008 Treasury & Risk Retirement Survey seem ready to consider more substantial overhauls to institutions, such as the 401k.
Located at: Treasury & Risk Management (PDF File). Click on headline for full article.
U.S. Retirement Assets Now Worth More than GDP - Summary: The 2008 Global Pensions Asset Study found that assets in U.S. pension funds, 401ks, individual retirement accounts, and other retirement savings vehicles have increased from $7.9 trillion in 1997 to $15 trillion in 2007.
Located at: OHSonline.com. Click on headline for full article.
Trends and Experience in 401k Plans 2007 - Summary: The 2007 Trends and Experience in 401k Plans survey results reveal emerging trends in 401k plan design and administration.
Located at: Hewitt Associates. Click on headline for full article.
Testimony Related to DOLs Proposed 408(b)(2) Regs
SPARK Institute Testimony on DOL Proposed 408(b)(2) Regs - Summary: This is the March 31, 2008 testimony of Larry H. Goldbrum, Esq., General Counsel, The SPARK Institute, before the United States Department of Labor, Employee Benefits Security Administration, regarding the "Proposed 408(b)(2) Regulations Amendment."
Located at: SPARK Institute (WORD Document). Click on headline for full article.
Investment Company Institute Testimony on DOL Proposed 408(b)(2) Regs - Summary: Testimony of Paul Schott Stevens, President and CEO, Investment Company Institute, before the Department of Labor hearing on 408(b)(2) regulations proposal.
Located at: Investment Company Institute. Click on headline for full article.
American Benefits Council Testimony on DOL Proposed 408(b)(2) Regs - Summary: Testimony of Robert Chambers (Helms, Mullis & Wicker) on behalf of the American Benefits Council before the U.S. Department of Labor Hearing on proposed 408(b)(2) regulations.
Located at: 401khelpcenter.com (PDF File). Click on headline for full article.
Testimony of Matthew D. Hutcheson on DOL Proposed 408(b)(2) Regs - Summary: Testimony of Matthew D. Hutcheson, Independent Pension Fiduciary, for "Hearing on Reasonable Contracts or Arrangements Under Section 408(b)(2) - Fee Disclosure" before the United States Department of Labor, Employee Benefits Security Administration, on March 31, 2008.
Located at: 401khelpcenter.com (PDF File). Click on headline for full article.
ASPPA & CIKR Recommend Changes in Proposed 408(b)(2) DOL Regs - Summary: ASPPA and CIKR recommended in testimony that the U.S. Department of Labor require a consolidated form of disclosure for all service providers regarding 408(b)(2) plans.
Located at: 401khelpcenter.com. Click on headline for full article.
DOL and IRS Items
Comments on IRS Regs for Employer Stock Diversification - Summary: American Benefits Council comments on the IRSs proposed regulation on diversification requirements for certain defined contribution plans.
Located at: American Benefits Council (PDF File). Click on headline for full article.
