Each month on our INSIGHTS blog, we share articles written for the plan sponsors and financial advisors we serve — and for those we haven’t met yet who may be considering Definiti’s retirement services.

Our INSIGHTS contributors address common questions plan sponsors have, such as what happens to the retirement plan in an M&A. We also feature our retirement plan attorneys’ expertise in quarterly ERISA Connection articles.

As we wrap up this year’s editorial calendar and begin making plans for new educational articles for 2023, we’re pausing for a moment to remind you of some of the most popular articles on our blog, along with other resources we think you’ll appreciate.

Benefits of 3(16) Administrator

We’re seeing more interest in 3(16) plan administrator (a.k.a. plan fiduciary) services to ease the back-office burden that comes with managing an employer-sponsored retirement plan.

This INSIGHTS article includes two bite-sized case studies — a global plastics manufacturer and a construction industry company — who decided to outsource 3(16) plan administration to The Fiduciary Studio* and how this saves the plan sponsors time, money and headaches.

Profit-Sharing Plans — a Missed Opportunity?

The most popular retirement plan is a defined contribution (DC) plan, such as a 401(k) or 403(b). One type of DC plan that often gets overlooked is a profit-sharing plan. Including one in an employee benefits lineup offers distinct advantages plan sponsors may want to consider.

In this article, we cover some misconceptions plan sponsors have about profit-sharing plans, including how a company doesn’t need predictable profitability to offer one and how a profit-sharing plan can be a standalone benefit if there isn’t a 401(k) or 403(b) in place.

SECURE Act 2.0 and RISE & SHINE Act

The Employee Retirement Income Security (ERISA) Act became law in 1974. Since then, every decade or so, the retirement plan industry has undergone substantial changes meant to encourage more Americans to save for retirement. For example, in 2001, the Economic Growth and Tax Relief Reconciliation Act made catch-up contributions a thing, giving people aged 50 and older a great way to save more for retirement. Then, five years later, the Pension Protection Act made it easier for companies to enroll employees in 401(k) plans automatically.

Definiti expects to see more sweeping changes to retirement plans any day now, with SECURE Act 2.0 again at the forefront. And though the exact day it passes is dependent on legislative priorities and bipartisan support, we believe these changes are worth waiting for. They’ll improve retirement plans, opening up new opportunities for people to save — no matter their age, whether they work full- or part-time or for a small or large company. SECURE Act 2.0 will also introduce a student loan provision that treats loan payments as elective deferrals, which employers can choose to make matching contributions to.

Our regulations worth watching article highlights key provisions of SECURE Act 2.0 and the lesser-known RISE & SHINE Act of 2022. It covers the proposed new benefits for plan participants and the increased incentives for employers who set up retirement plans.

Wait, There’s More (Resources on Our Website)

In addition to INSIGHTS articles, we create helpful resources and tools for plan sponsors and advisors; here are three of our current favorites:

• Annual Compliance and Notice Requirements – Plan sponsors have to keep track of many critical deadlines, such as when to file Form 1099-R with the IRS and when to issue Summary of Material Modifications. That’s why we provide an annual calendar on our website. Download the PDF for a convenient deskside guide.
• Definiti Academy Replays – Each year, we invite plan sponsors and advisors to a series of educational meetings, showcasing the insights and subject matter expertise of some of our team members and industry partners. If you couldn’t attend this year’s Definiti Academy in November or want to re-listen to a session, watch the replays from the plan sponsor and advisor tracks.
• Retirement Plan Terms to Know – This A-to-Y resource (because there’s no “Z” term in the retirement plan world) provides simple definitions of everything from the ADP/ACP Nondiscrimination Test to Year of Service. Download the PDF and share it with a new member of your employee benefits team.

We’re Here to Help

To remain a trusted partner to the retirement plan industry, Definiti works tirelessly to educate and inform plan sponsors and advisors designed to help make their jobs easier and stay on top of potential, broad legislative changes and minor legal updates, too.

If you already partner with Definiti, you recognize our commitment to timely, relevant communications. If you’re a financial advisor or plan sponsor searching for an experienced retirement services partner, let’s start the conversation. Call Definiti at 1-888-912-3653 or email sales@definiti-llc.com.

 

 

*The Fiduciary Studio is a wholly owned subsidiary Definiti LLC. Unlike other 3(16) plan administrator service providers newer to selling this service, The Fiduciary Studio has a decade of experience in this area. The Fiduciary Studio’s services keep retirement plans compliant and minimizes the risks associated with critical activities while allowing plan sponsors more time for other employee benefits — or in the case of a company owner, managing the business.

 

NOTE: The existing law and regulations currently in effect will govern any contradiction between what is presented here and actual law and/or government regulations.

 

This material has been prepared for informational purposes only, and is not intended to provide legal, tax, or investment advice. Any tax-related discussion contained in this material is not intended or written to be used, and cannot be used, for (i) avoiding any tax penalties, or (ii) promoting, marketing, or recommending to any other party any transaction or matter addressed herein. This material does not provide fiduciary recommendations concerning investments or investment management; it is not individualized to the needs of any specific benefit plan or retirement investor, nor is it directed to any recipient in connection with a specific investment or investment management decision. Please consult your independent legal counsel and/or professional tax advisor regarding any legal or tax issues raised in this material.