With discussions and negotiations over the financial cliff, one needs to look at the possible ramifications that it will have on retirement plans. We certainly don’t know what the final outcome will be, but as retirement plan providers, we need to be aware of what changes may take place.
Will there be a phase-out of the 401(k) salary deferral deduction for the wealthy? Will an increased tax rate have employers start to look at defined benefit plans, cash balance plans, non-qualified plans, and new comparability profit sharing plans to augment savings? Will employers just chuck their retirement plans because of the increased fee disclosures?
Your guess on retirement plan changes is as good as mine, but we have to be vigilant in identifying the changes that will be made and how it will affect our business.