The Frugal Fiduciary Blog

Small Business Retirement Plan Options: 401ks vs. SIMPLE and SEP IRAs

Posted by Eric Droblyen on Feb 10, 2016

Defined contribution (DC) plans, such as 401(k) plans, are the most popular type of workplace retirement plan in the United States today. According to Department of Labor statistics, there are 633,021 DC plans in the U.S. (516,293 of which are 401(k) plans), covering more than 90 million total participants.

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Topics: retirement plans, small business 401k

NAPA stakes a position against the DOL’s fiduciary rule

Posted by Eric Droblyen on Jan 26, 2015

This month, the DOL is expected to propose a “fiduciary rule” for financial advisors that provide investment advice to retirement plans. This rule, also called the “conflict of interest rule for investment advice,” would subject brokers to the same fiduciary obligations as investment advisers. The DOL proposed a fiduciary rule in 2010, but that proposal was withdrawn in 2011 under heavy pressure from some lawmakers and lobbyists representing the financial services industry.
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Topics: retirement plans, fiduciary, 401k blog, DOL, 401(k) advisors

Keeping my Fingers Crossed for 401k Reform in Tonight’s SOTU Address

Posted by Eric Droblyen on Jan 20, 2015

President Barack Obama will give his State of the Union address at 9 p.m. Eastern tonight. During this speech, he is expected to propose reforms to our private retirement plan system. If he does, it will be second year in a row the president addressed retirement plan reform. Last year, the president created the myRA, a new type of retirement account. If you read my last blog, you know I am not a fan of the myRA. This year, I hope the president will do better by announcing his support for the DOL’s proposed fiduciary rule for advisors overseeing retirement plans, now called the “conflict of interest rule for investment advice.”
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Topics: small business retirement plans, retirement plans, 401k blog, small business 401k, 401(k), President Obama

MyRAs are not the answer for expanding retirement plan coverage

Posted by Eric Droblyen on Jan 6, 2015

 

In his 2014 State of the Union address, President Obama directed the U.S. Treasury Department to create a new type of savings account for Americans. The myRA—short for “my Retirement Account”—is designed to be a starter account for workers who aren’t covered by a workplace retirement plan.
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Topics: retirement plans, 401k blog, small business 401k

JP Morgan publishes a piece on choosing target date funds for your plan. Good points made, but even better points are left out.

Posted by Greg Carpenter on Dec 23, 2014

I welcome this “Retirement Insights” piece from J. P. Morgan Asset Management – as far as it goes. The piece makes several excellent points that can benefit all plan sponsors, but presents a view biased toward active management. No surprise. JP Morgan actively manages retirement plan investments – they have a point of view that ultimately promotes the company’s business and brand.

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Topics: 401k plan sponsor, retirement plans, 401k blog, small business 401k, Target Date Funds

Reforming Roth provisions may be key to improving savings rates for Millennials. My proposal.

Posted by Greg Carpenter on Nov 20, 2014

Roth 401k & Millennials
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Topics: small business retirement plans, retirement plans, 401(k) Investments, Roth 401k, 401k blog, 401(k), Millennial Employees, tax benefits, 401k participants

Let’s put “Income” back in ERISA

Posted by Greg Carpenter on Nov 13, 2014

ERISA
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Topics: small business retirement plans, low cost 401(k) plan, retirement plans, Defined Benefit Plan, 401(k) Investments, 401k blog, Vanguard 401k, small business 401k, 401(k)

MassMutual settled its “functional fiduciary” lawsuit – a cause for hope for greater fee transparency.

Posted by Greg Carpenter on Nov 10, 2014

Functional Fiduciary Lawsuit
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Topics: revenue sharing, 401k plan sponsor, retirement plans, ERISA, small business 401k, 401(k), expense ratio

Small business owners are redefining the market for 401k plans. Result: Mass market “products” are about to go extinct.

Posted by Greg Carpenter on Oct 28, 2014

Small Business 401k Plans
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Topics: small business retirement plans, retirement plans, 401(k) Investments, 401k blog, small business 401k, 401(k)

Edison International case highlights a needed reform: Share class restrictions in 401k plans.

Posted by Greg Carpenter on Oct 22, 2014

401k Plans
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Topics: small business retirement plans, retirement plans, 401k blog, small business 401k, mutual funds, 401(k)

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