John Iekel
By John Iekel 11/9/2020
The IRS in Revenue Ruling 2020-23 issued guidance on distribution of individual custodial accounts (ICAs) in kind when a 403(b) terminates. The IRS issued the guidance on Nov. 5.
At issue is whether a 403(b) plan funded through 403(b)(7) custodial accounts in two situations has been terminated...
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By John Iekel 11/3/2020
The CalSavers Retirement Savings Board reports that employer registrations and employee participation have increased in CalSavers, the state-run program that provides retirement plan coverage to employees whose employers do not offer a plan.
The numbers reflect the passing of the new deadline by...
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By John Iekel 11/3/2020
Your sales advisors are about to head out to do business. What would you tell them? Following are some responses from heads of practices and experienced advisors regarding their words of wisdom to those in the field.
Knowledge
They emphasized the importance of knowledge. “Be an expert in...
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By John Iekel 10/30/2020
There was a big increase in annuity sales from the second quarter of 2020 to the third quarter of 2020, says a recent report.
According to the Secure Retirement Institute, total annuity sales for the third quarter amounted to $54.8 billion, 13% higher than the sales in the second quarter. They...
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By John Iekel 10/29/2020
This is a rare time. And not just in ways we’ve focused on for seemingly ages—it’s a once-every-four-years time when we select a president. That has great implications for a host of things, including investments—which can affect retirement plans and participants.
And those effects are relevant to...
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By John Iekel 10/26/2020
In a year full of extraordinary change, there’s little of that for contribution and benefit limits in 2021.
The IRS has announced cost-of-living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2021. The 2021 limits are contained in...
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By John Iekel 10/22/2020
The IRS has updated the information on its website concerning the tax consequences of noncompliance by tax-exempt 457(b) plans.
Specifically, in the Issue Snapshot the IRS discusses rules under Internal Revenue Code Section 457 regarding nonqualified deferred compensation plans established by...
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By John Iekel 10/20/2020
Rep. Ron Kind (D-WI) has introduced legislation that would increase access to retirement savings for employees of nonprofit organizations that have 403(b) plans.
The bill would expand access to savings by:
allowing 403(b) plans to utilize open multiple employer plans (MEPs), which would...
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By John Iekel 10/19/2020
The IRS on Oct. 16 modified guidance and clarified rules to address payments made to state unclaimed property funds. The IRS announced the changes in Revenue Procedure (Rev. Proc.) 2020-46 and Revenue Ruling (Rev. Rul.) 2020-24.
Rev. Proc. 2020-46
Rev. Rul. 2020-46 modifies and updates Rev. Proc...
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By John Iekel 10/16/2020
Confidence is alive and well among Baby Boomers regarding their retirement, impervious even to pandemic and economic turbulence, says a recent study.
A strong majority—84% of those who are close to retiring or who have already—in Charles Schwab’s 2020 Modern Retirement Survey said they believe...
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By John Iekel 10/15/2020
Interest among participants in employer-provided plans in guaranteed income during retirement is still strong, according to a recent study.
A strong majority—just below 75%—of participants in employer-provided retirement plans told Allianz Life Insurance Company of North America that they would...
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By John Iekel 10/13/2020
The Social Security Administration (SSA) announced Oct. 13 that the monthly Social Security and Supplemental Security Income (SSI) benefits will increase 1.3% in 2021. The change will affect approximately 70 million Americans. This announcement provides an early signal regarding COLA adjustments on...
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By John Iekel 10/9/2020
A proposed financial transaction tax has not been enacted yet, and a recent study suggests that could save retirement plans in the Garden State billions of dollars.
“A Case Study on the Effects of a Financial Transaction Tax on Savers in New Jersey,” an October 2020 study by Gourprabh, University...
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By John Iekel 10/6/2020
In today’s new normal, school districts and teachers have so many things to juggle in the classroom, and among the matters that are top of mind are diversity and inclusion. An NTSA panel discussion offered insights to help schools, educators and advisors frame their discussions for the classroom...
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By John Iekel 10/5/2020
The American Retirement Association (ARA) submitted a statement to the Senate Special Committee on Aging for the record in connection with its hearing, “Women and Retirement: Unique Challenges and Opportunities to Pave a Brighter Future.”
“Women face a series of interconnected issues that make...
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By John Iekel 10/2/2020
Effective Sept. 28, the Department of Labor (DOL) began following the Promoting Regulatory Openness through Good Guidance Rule, a measure that requires that it use guidance appropriately, transparently and in a manner that is accessible to the public.
The rule implements Executive Order 13891, “...
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By John Iekel 10/1/2020
Memory fades. But how fast? Within six months, at least regarding cybersecurity protocols, according to a study of how long employees retained the security measures they had learned.
In “An Investigation of Phishing Awareness and Education Over Time: When and How to Best Remind Users,” researchers...
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By John Iekel 10/1/2020
There is much to be done about retirement income literacy, says a recent study that found great lack of understanding about successful planning for a financially secure retirement.
In its 2020 Retirement Literacy Survey, says The American College of Financial Services, respondents got an average...
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By John Iekel 9/28/2020
The IRS has updated the information on its website concerning correction of excess deferrals under Code Section 457(b).
Specifically, in the Issue Snapshot the IRS discusses correction of excess deferrals under a 457(b) plan maintained by a tax-exempt entity and a government.
Annual Limitations...
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By John Iekel 9/24/2020
The deadline by which large employers in California are to register with CalSavers—the state-sponsored retirement plan for employees whose employers do not offer a plan—is fast approaching.
Employers in the Golden State with 100 or more employees have until Sept. 30 to register. The original...
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