I recently spent a whole day in Salt Lake City discussing operational nuances and considerations with ERISA 403(b) plans that have more than one service provider. As this is the case with a large number of 403(b) plans, even those with a single current provider due to service provider contracts that require individual releases to transfer. Some always remain with a former provider.
I love the mountains, and the view from the conference room was awesome. I think kids today overuse that word, but to me, the mountains are truly awesome, and I was thrilled to be able to look out the window during our discussion. One item that took my attention away from the picturesque vista was a discussion around beneficiary designations. These could be truly problematic when there are multiple service providers involved. This is true for any plan with multiple providers, and not just ERISA plans. Read more
I’d like to thank you for indulging me as I take one last dramatic turn in my blog series featuring the “Seven Administrative Sins.” In each blog, I’ve uncovered the errors 403(b) plan sponsors make (many times unknowingly) that can doom their plans – either from a compliance perspective or through administrative adversity.
To get up to speed, you can read the first blog of this series, where I talked about how problems arise when many plans have provisions to force out small amounts, as well as the limitations regarding retirement plan loan limitations. In the second blog, I introduced two more “sins” – hardship distributions and Qualified Domestic Relations Orders (QDROs).
At the Principal Financial Group®, we typically see these type of problems crop up when a 403(b) plan sponsor who is shopping for a new service provider comes to us in search of a professional to guide them. Which brings me to the last chapter – the final three (and possibly the most pervasive) sins a plan sponsor can make. Read more
This is my second of three blogs in a series I call the “Seven Administrative Sins,” which I know sounds a little ominous. Yet I’ve found it’s an effective way to point out the mistakes 403(b) plan sponsors make that can put a non-profit plan out of compliance – or turn it into an administrative monster.
In the first blog of this series, I talked about the problems regarding how many plans have provisions to force out small amounts, as well as the limitations regarding retirement plan loan limitations and the challenge of tracking them. In this blog, I will introduce two more “sins” that can plague 403(b) plan sponsors – and suggest a way to help them. Read more
Despite conventional wisdom that says one shouldn’t discuss religion or politics in social situations, I invariably find myself in conversations about one or both. Thankfully the discussions regarding religion have never touched on something as philosophical as the “Seven Deadly Sins” (I was definitely not a philosophy major!). But the concept got me thinking about the mistakes that 403(b) plan sponsors make—the “Seven Administrative Sins” if you will, that can put a non-profit plan in real jeopardy.
While the majority of “sins” are committed unknowingly, they have the potential to create some real administrative and compliance-related issues for plan sponsors—problems that could be avoided and rectified with the help of a financial professional. In the first installment of this series, I will go over the first two sins—the problems that surface as we at the Principal Financial Group® are assisting a plan sponsor. Read more