TRA MAKES NEWS HAPPEN

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  Plan Sponsors Ask…

  November 8, 2022 - Question: We are considering a plan design change regarding loans. Are there any data that supports offering just one loan per participant versus offering multiple loan options? Answer: According to T. Rowe Price’s 2022 “Reference Point”, plans that allow multiple loans tend to have lower savings rates — dropping from an average deferral of 7.9% to 6.8%. Allowing a greater number of loans is also... Continue
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  CASE OF THE WEEK – Retirement Plans and Davis Bacon “Prevailing Wage” Rules

  November 4, 2022 - Under the Davis-Bacon and Related Acts and Reorganization Plan No. 14 of 1950, the U.S. Department of Labor is responsible for determining prevailing wages, issuing regulations and standards to be observed by federal agencies that award or fund projects subject to Davis-Bacon labor standards, and overseeing consistent enforcement of the Davis-Bacon labor standards. Continue
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  CASE OF THE WEEK – Managed Account or Advisor Managed Account—What is the Difference?

  October 28, 2022 - Yes, there are differences between a basic managed account and the more holistic advisor managed account in a 401(k) plan. Continue
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  PRESS RELEASE – TRA Hires Allison Futch as Regional Sales Consultant

  October 18, 2022 - TRA is pleased to announce the hiring of Allison Futch as their latest Regional Sales Consultant, providing retirement plan consulting services to the Texas, Louisiana, and Mississippi territory. Continue
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  CASE OF THE WEEK – Beneficiary Disclaimer – Is is All or Nothing?

  October 14, 2022 - A qualified disclaimer is an irrevocable refusal by a beneficiary, including a beneficiary of retirement assets, to accept an interest in property pursuant to IRC Sec. 2518(b). A beneficiary can refuse to accept her entire interest in property or a partial share under certain circumstances. The nuances of beneficiary disclaimers are many. Therefore, anyone interested in executing a qualified disclaimer is cautioned to seek the guidance of an experience tax and or legal advisor for his or her specific situation. Continue
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  CASE OF THE WEEK – Filing Form 5500 Without an Audit Report

  October 7, 2022 - The Department of Labor’s (DOL’s) EFAST2 electronic system will accept a Form 5500 filing without the independent qualified public accountant (IQPA) audit report attached, however the DOL will treat the submission as an “incomplete filing and [it] may be subject to further review, correspondence, rejection, and assessment of civil penalties Continue
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  CASE OF THE WEEK – Managed Accounts

  September 30, 2022 - Offering managed account options in DC plans is a growing trend, primarily because of their enhanced ability to deliver personalized retirement outcomes. Whether to include managed account services within a DC plan is a fiduciary decision for plan sponsors and committees that should match the goals of the plan, and not be taken lightly. If a managed account service is suitable for a plan, the governance elements include selecting, monitoring, benchmarking and documenting all stages of the decision and maintenance process. The industry lacks an accepted framework to confidently meet these expectations. Financial advisors have a true opportunity to offer consultative value in this arena. Continue
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  CASE OF THE WEEK – Plan Contributions for 403(b) and Governmental 457(b) Plans

  September 23, 2022 - Sometimes individuals who are lucky enough to participate in multiple employer-sponsored retirement plan types may be puzzled by what their maximum contribution limits are. This is especially true when a person participates in a 403(b) and 457(b) plan. That is why it is important to work with a financial and/or tax professional to help determine the optimal amount based on the participant’s unique situation. Continue
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  CASE OF THE WEEK – Automatic Contribution Arrangement (ACA) Plan Entry Requirements

  September 16, 2022 - A 401(k) plan with an ACA generally is a cash or deferred arrangement (CODA) that provides for automatic elective contributions in the absence of a specific affirmative election by a participant. QACAs and EACAs are subject to detailed annual participant notice requirements that are set forth in the Code and regulations. In contrast, whether the notice under an ACA is adequate is generally based on the facts and circumstances. Continue
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  Q & A – Gaining a Better Understanding of Inflation

  September 13, 2022 - Over the past year, price increases have grown out of pandemic-related shutdowns, supply chain disruptions, labor shortages, the war in Ukraine and a host of other influences. The Consumer Price Index (CPI), a key measure of inflation, reached a 40-year high in June of 2022, at 9.1%. The price of almost everything, including used cars, housing, gas and groceries have all been prominently affected. Continue