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401(k)s

News

Most 401(k) Participants Ignore 2Q Volatility

Retirement plan investors are calming down, MassMutual data shows.

Automatic IRAs a Good Start, But Need Improvement: Aite Group

Government’s effort to boost retirement savings could overburden small employers.

Target Date Funds to SEC: Yes on More Disclosure, No on Changing Names

Investment funds, lawmakers and other fund experts say that target-date funds need to increase the amount of information they provide investors to understand their investment risk. But they don’t want the Securities and Exchange Commission to change the way the funds are named.

BlackRock Argues Against Adding Asset Allocations to Target-Date Fund Name

In a letter to the SEC, investment management firm says it does support enhanced disclosure.

Employers Connecting Dots Between 401(k) Admin, Payroll

Money & Taxes in Alignment: 401(k) plan sponsors are getting plans and payrolls into better alignment.

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Articles

Looking Into the 401(k) Future

The 30th anniversary of the first 401(k) savings plan which I designed is rapidly approaching on Jan. 1, 2011, making this an appropriate time to briefly consider how 401(k) has impacted our retirement system. Most Fortune 500 companies offered their employees a defined benefit plan, plus a thrift/savings plan, when 401(k) savings plans began in 1981. The thrift plans featured after-tax employee contributions, plus matching employer contributions. The most common retirement plan available to employees of small to mid-size companies was an employer-funded profit sharing plan.

Investors Seek Advice As Nest Eggs Rebound

Assets in 401(k) plans and other retirement accounts are up 18% from a year ago and have nearly erased losses from the recession as investors continue to pump money into their plans and take advantage of lower prices, according to a report from the Spectrem Group. Furthermore, investors are more than twice as likely to seek out financial advice than they were a year ago and commonly turn to mutual fund and plan provider websites for information, the report said.

Fidelity Aligns with Advisers, Lowers Fees for Small 401(k)s

Fidelity Investments expects sales of its 401(k)s to continue to increase through third-party financial advisers to small and midsized companies-and the company plans to reduce fees to gain additional share. In August, Fidelity plans to switch its Advisor 401(k) platform to a system where the adviser receives a flat fee from Fidelity instead of several different fees in the form of 12b-1 fees.

At Age 30, It's Time for a Revamping for the 401(k)

This year marks the 30th anniversary of the 401(k), the revolutionary retirement savings vehicle that has been annihilating pension plans, empowering individuals to take part in the stock market-and, sadly, that left retirees with the misfortune of leaving the workforce in 2000 or 2008 very badly off. The cracks in the system are prompting many asset managers, regulators and retirement experts to take a hard look at the 401(k) system and how it can be fixed.

DOL Rule Emphasizes Independent 401(k) Advice

Bona fide 401(k) investment advice could finally become standard practice in defined contribution plans, thanks to the Department of Labor's proposed rules limiting the actions of investment professionals who take commissions. "The concern is that we don't want [workers] steered in a direction that may not be best for them simply because that's the way the adviser can make more money," said Phyllis Borzi, assistant secretary of the Employee Benefits Security Administration at the DOL.

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