(b)lines Ask the Experts – 403(b) Contributions and Tax Reporting

PlanSponsor.com
“I am a fairly new employee at a nonprofit hospital, who made elective deferrals to a 403(b) plan for the very first time in 2011. I am about to file my individual tax returns for 2011, since the deadline of April 17th is fast approaching.
“Is there anything special that I need to take into account with respect to my 403(b) contributions and tax reporting?”
 
Michael A. ...read more

Retirees Most Concerned With Inflation

PlanSponsor.com
The greatest retirement planning concerns among Americans include protection against inflation, the ability to pay for health care and the cost of long-term care.
According to “The 2011 Risks and Process of Retirement Survey,” sponsored by the Society of Actuaries (SOA), the retirement risks that most concern both retirees and preretirees are:

 Keeping the value of their savings and investments up with inflation (69% of retirees, 77% ...read more

Younger Workers Look for Employers with DB Plans

PlanSponsor.com
In 2011, more younger workers say they accepted a job offer from a company because it offered a defined benefit (DB) pension plan.
According to the Retirement Attitudes Survey by Towers Watson, in 2009, 28% of workers younger than age 40 said a DB plan was their reason for accepting their job. This number more than doubled in 2011 to 63%. This number compares with a ...read more

Men More Confident About Retirement than Women

PlanSponsor.com
Forty-three percent of male workers believe they are saving enough money in order to live comfortably in retirement, compared to 26% of female workers.
According to the Principal Financial Well-Being Index, the gender disparity carries over to Americans’ confidence in their financial future, with 49% of male workers reporting some level of confidence in their ability to achieve their dreams for their financial future, compared to ...read more

(b)lines Ask the Experts – Universal Availability Exclusion

PlanSponsor.com
“Though I have discussed the administrative burden of utilizing such an approach, some of my 403(b) plan sponsor clients wish to exclude employees from the right to make elective deferrals  if they normally works fewer than 20 hours per week, as defined in the 403(b) final regulations.  I have two actual examples in working with my clients for which I am uncertain as to the ...read more

(b)lines Ask the Experts – RMDs for Rolled Over Balances

PlanSponsor.com
“I was reading your recent Q&A regarding the hire that was over age 70 ½ years of age which stated that the individual would need to take required minimum distributions (RMDs) from plans of prior employers.
“However, I have an employee who just turned age 70 ½ who did NOT leave his balances on deposit with prior employers; instead, he rolled such balances over to our ...read more

Written Financial Plan for Retirement Boosts Confidence

PlanSponsor.com
Fifty-eight percent of investors say they have “little” to “no” control over their ability to build retirement savings.
This statistic is down from 65% six months ago, according to the February Wells Fargo/Gallup Investor and Retirement Optimism Index.
While the poll results suggest younger Americans see retirement saving as the individual’s responsibility, few have created written retirement plans. Three out of 10 (31%) of the non-retired respondents ...read more

Teachers must learn to adjust to 403(b) plans

Bankrate.com via Yahoo Finance
By:  Sheyna Steiner
Three years after new regulations governing 403(b) plans went into effect, the plans are still in flux and experiencing some growing pains — actually, shrinking pains.
The regulatory overhaul has pushed employers in some segments of the 403(b) market to limit the number of vendors servicing their plans. That, in turn, has caused plan participants in at least one segment of ...read more

Increasing 403(b) Plan Participation in the K-12 Market

PlanSponsor.com
Working together to increase K-12 employee participation in 403(b) plans can produce benefits for advisers, school districts and employees alike.
Charles M. Riharb, PlanMember Securities Corporation, explained to attendees at the National Tax Sheltered Accounts Association’s (NTSAA) 403(b) Advisor Summit that K-12 employees are so far behind in saving for retirement because there is not a “culture of savings” in schools.  School districts lack human resources ...read more

Understanding the New 403(b) Model Disclosure Form

PlanSponsor.com
One of the key reasons for the 403(b) Transparency Taskforce’s new 403(b) model disclosure form is so vendors can show plan sponsors that they offer more than just products, according to industry experts.
Robert J. Toth, Jr., Esq., Law Office of Robert J. Toth, Jr., told attendees of the National Tax Sheltered Accounts Association’s (NTSAA) 403(b) Advisor Summit plan sponsors will see the services vendors offer ...read more

Without workplace benefits only 5% of employees save for retirement

Employee Benefit Advisor
Without the workplace benefit only 5% of plan participants save for retirement on their own, suggests data prepared for The American Society of Pension Professionals & Actuaries by the Employee Benefit Research Institute.
The Legg Mason Retirement Advisory Council announced a white paper Tuesday, “The Savings Crisis of Working Americans: The Retirement Industry Call to Action” that examines the retirement savings shortfall and calls on ...read more

403(b) Transparency Taskforce Launches Model Disclosure Form

PlanSponsor.com
The 403(b) Transparency Taskforce launched the 403(b) Model Disclosure Form—transparency standards for disclosure of fees and services in the public school 403(b) marketplace.
The taskforce includes the National Education Association (NEA), the National Tax Sheltered Accounts Association (NTSAA) and The American Society of Pension Professionals & Actuaries (ASPPA).
To Read the Full Article Click:  HERE

Those Who Work With Financial Adviser Better At Retirement Planning

PlanSponsor.com
Two-thirds (66%) of those who work with a financial adviser have an understanding of how much of their retirement savings they will withdraw annually at retirement.
According to the 2011 Franklin Templeton Retirement Income Strategies and Expectations (RISE) survey, among the Americans who have never worked with a financial adviser, only 36% said they know how much they will withdraw annually from their retirement savings. In ...read more

The Making of the 403(b) Model Disclosure Form

Business of Benefits
The successful chair of a committee serves the committee, the committee does not serve the chair. And so it was with the creation of the just-released “best practices” 403(b) Model Disclosure, which was developed jointly by NEA, ASBO, NTSAA and ASPPA. I was fortunate enough, and honored, to serve as the chair of that group. I have chaired  and served probably more tha

n my ...read more

USA TODAY: New tool to clearly disclose 403(b) fees

USA Today
Just as many teachers are seeing pensions shrink, they’re relying more on costly 403(b) retirement plans that are not covered by the new federal fee disclosure rules.
Public school employees have no help from their school systems in making informed investment choices, so an industry task force, including the National Education Association, today will unveil a tool that will clearly disclose 403(b) plan fees.
Although schools will ...read more

New Fee Disclosure Solution Released by NEA, NTSAA & ASPPA Joint 403(b) Taskforce

Model Disclosure Sets National Transparency Standards for Public School 403(b) Fees & Services
ARLINGTON, VA., (February 1, 2012)—Partners of the 403(b) Transparency Taskforce including the National Education Association (NEA), the National Tax Sheltered Accounts Association (NTSAA) and The American Society of Pension Professionals & Actuaries (ASPPA) today launched the 403(b) Model Disclosure Form—the first ever transparency standards for disclosure of fees and services in the public school ...read more

NTSAA Hosts 403(b) Advisor Summit

401k Fiduciary News
Event:  Retirement professionals gather with industry experts and business leaders in Las Vegas at the NTSAA 403(b) Advisor Summit to discuss the state of the business, major industry trends, and the impact of new legislation and regulations on the 403(b) and 457(b) plans marketplace. Attendees include accountants, attorneys, broker/dealers, plan sponsors and various other investment professionals.
Journalists who cover personal finance, retirement, taxes, or financial planning ...read more

Year End Business: The Art of the Corporate Resolution; Those 403(b) RMD Amendments

Business of Benefits
By:  Robert Toth
I am, by some serious training and long experience, a corporate lawyer, having been put through the paces by two incredible general counsels: Jack Hunter of Lincoln Financial Group and Scott Campbell of Kellogg Company. Each of these gentleman made quite a study of their attendant Boards and the rules (both formal and informal)  related to their rarefied status. The expectation ...read more

Study of 401(k) Plans and 403(b) Plans Demonstrates Benefits of Partnering with a Professional Retirement Plan Advisor

PR Newswire
The Retirement Advisor Council reports findings of a fundamental research study demonstrating impactful benefits of partnering with a Professional Retirement Plan Advisor for 401(k) and 403(b) plan sponsors.  This study is the first of its kind; never before has anyone collected data quantifying the benefits of plan sponsors partnering with a Professional.
The survey of 409 employers offering a 401(k) or a 403(b) plan found that ...read more

Groups Ask IRS not to Abandon 403(b) Prototype Program

planadvisor.com
Industry groups sent a comment letter to the Internal Revenue Service to support the inclusion of 403(b) plans in the prototype program for pre-approved plan documents.
The National Tax Sheltered Accounts Association (NTSAA) and the American Society of Pension Professionals & Actuaries (ASPPA) say informal comments have been made by IRS officials that budget concerns have resulted in a reexamination of whether to include 403(b) plan ...read more