TRA MAKES NEWS HAPPEN

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  CASE OF THE WEEK – Auditor’s Report “Disclaimer of Opinion” for Form 5500 Filings

  May 13, 2022 - Limited scope audits associated with IRS Form 5500s have a new name and scope because of changes that are effective starting with the 2021 filing year in most cases. A plan sponsor’s ability to elect such an audit continues. The new rules change what is expected of the plan auditor. Make sure the plan has an experienced auditor who is keenly aware of the new expectations. Continue
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  CASE OF THE WEEK – Roth IRA vs. Designated Roth 401(k)

  May 6, 2022 - While both Roth IRAs and designated Roth 401(k) plan contributions offer the potential for tax-free withdrawals, there are several key differences between the two arrangements. Whether one, the other or both may be right for a particular investor depends on the individual’s circumstances and goals and should be determined based on a thorough conversation between the investor and his or her tax advisor. Continue
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  PRESS RELEASE – TRA Appoints Brian Flynn As New Regional Sales Consultant

  May 3, 2022 - Flynn has nearly 20 years of expertise in the retirement services industry and has held several sales and leadership roles with some of the industry’s biggest and most well-known companies, including: Ameritas, John Hancock Retirement Plan Services, and Watson Wyatt Worldwide. Continue
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  In the Driver’s Seat

  May 3, 2022 - Aon surveyed 12 top carriers for fiduciary liability insurance to understand their views on the biggest sources of fiduciary risk within the control of fiduciaries for defined benefit (DB) and defined contribution (DC) plans subject to ERISA. Continue
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  Plan Sponsors Ask…

  April 26, 2022 - Fifty-eight percent of sponsors surveyed for the 2021 PLANSPONSOR Defined Contribution (DC) Plan Benchmarking Report said their organization has been using its DC plan recordkeeper for more than seven years, so the timing may be right for sponsors to take a fresh look at the recordkeeping marketplace. Continue
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  CASE OF THE WEEK – When might a cash balance plan be a good fit?

  April 22, 2022 - There are some key characteristics to look for in a business owner when evaluating whether a cash balance plan might be a good fit. For the right candidate, a cash balance plan—or even a combination cash balance and defined contribution plan—can provide significant benefits. Above all, whether to set up a qualified retirement plan is an important tax-related question that a business owner should only answer with the help of his or her tax professional. Continue
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  A Window Into Wellness

  April 19, 2022 - Americans define financial wellness as simply feeling comfortable with their financial situation. Over 50% believe wellness is defined as having the means to take care of family, not worrying about money or debt, and feeling protected financially from life’s unexpected events. Continue
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  Plan Sponsors Ask…

  April 12, 2022 - This study evaluates the interaction between employer match and default rates on savings outcomes among new employees. Selecting a higher default rate has the largest impact on employee savings rates. Plans with low default rates that match a high percentage of employee earnings induce higher-income participants to actively move away from the low default savings rate, resulting in a wider savings gap between higher- and lower-income employees. When default savings rates are set higher, fewer employees move away from the default resulting in higher and more equal savings rates. Additionally, we find evidence that higher default savings rates increase usage of plan default investments. Continue
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  CASE OF THE WEEK – Get Ready to Explain Lifetime Income Illustrations

  April 8, 2022 - Slowly the DC market is shifting from a lump sum accumulation mindset to a retirement income mentality. Plan sponsors soon must implement the formalized lifetime income disclosure rules. Although the lifetime income illustrations under the DOL’s regulations are far from perfect, they do press the issue of helping participants understand how their retirement plan balances translate into monthly retirement income. Plan sponsors and advisors can use this impetus to carefully craft their participant communications and messaging. A key differentiator for advisors, moving forward, will be the ability to effectively support participants in transitioning to a true retirement income mindset. Continue
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  CASE OF THE WEEK – Designated Roth 401(k) Contributions and IRS Form 8606

  April 1, 2022 - Designated Roth contributions made to a 401(k) plan are not reported on IRS Form 8606, Nondeductible IRAs. However, a taxpayer will need to include designated Roth 401(k) amounts rolled into a Roth IRA in the value of the Roth IRA’s basis. Continue