Monthly Archives: February 2021

I hate the stated match

A 401(k) plan doesn’t have to be treated like the Bible or any other type of book where every work is analyzed and studied. It can be open and not be as decisive. I believe. The best flexibility for plan … Continue reading

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The former employees can be a huge problem

In terms of issues over retirement plans for the past 22 years, the two most treacherous investigations that I went through with the Department of Labor (DOL) over the plans sponsored by clients, simply started by a complaint by a … Continue reading

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Yes, Bitcoin in 401(k) plans is a bad idea

Over the 30 years of investing, I have seen nothing like my investment in bitcoin and other digital currencies. There have been swings of more than 10% a day and I’m up over 100% since first starting investing this summer. … Continue reading

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DOL recovered a bunch

The Department of Labor (DOL) released its 2020 enforcement fact sheet, showing the work they did for retirement plans and plan participants. The DOL recovered over $3.1 billion in direct payments to plans, participants, and beneficiaries.  The DOL’s Employee Benefits … Continue reading

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Survey shows ESG still hasn’t caught on

Despite the concerns that the Trump administration implemented Department of Labor (DOL) regulations that hampered the use of environmental, social, and governance (ESG) investments, I still don’t think that it’s a big deal because ESG funds haven’t caught on completely … Continue reading

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The PPP Registration finalized

Even though Pooled Employer Plans were made effective on January 1, 2021, the Department of Labor (DOL) has issued final regulations on registration requirements for pooled plan providers (PPP) administering PEPs. A PPP is required to make an initial registration filing … Continue reading

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Best defense is good procedures and following them

Having a great 401(k) plan doesn’t mean that a former participant won’t sue you or the government won’t audit you. The reason is that you have no control over what other people may do. The best defense isn’t a great … Continue reading

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You need to read the plan document

I once worked at a third-party administrator (TPA) that I joked that if you wanted to hide something from one of our plan administrators, you should put it in the plan document file (based on a Chris Rock joke). It’s … Continue reading

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Advisors need to offer education, it’s that simple

Advisors ask me all the time about the role of education in participant-directed 401(k) plans. Participant directed 401(k) plans that are governed under ERISA §404(c) offer the plan sponsors liability protection based on a participant’s gains or losses on their … Continue reading

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Well, I have an in with this association

If I got $5 for every time an advisor or other plan provider told me they had an in with an association, I’d probably have enough to pay my mortgage. The problem. Having an in doesn’t mean that advisor or … Continue reading

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