The landscape for retirement plan sponsors continues to change with the most recent Supreme Court decision in the case of Tibble v. Edison International. In fact, the decision, which ruled in favor of the employee group, constitutes a tectonic shift in the relationship between plan participants and plan sponsors.
Retirement Services & Financial Advisors - Serving Columbus & Beyond
Making good on a promise made by President Obama earlier in the year, the Department of Labor has come out with its highly anticipated proposed rule that would require any broker who advises a retirement plan to act in a fiduciary capacity – that is, to act in the best interest of the client.
Most company 401k plans offer individual account plans in which participants direct their own investments, so should be taking advantage of Section 404(c) of ERISA. This is the provision that frees you and your company of certain fiduciary liabilities for the investments they offer.
For business owners, there’s no shortage of retirement plan options, each with the capacity to accept larger contributions than individual or employee plans with commensurate tax advantages. Until recently, the default options for many business owners had been the Simplified Employee Pension (SEP IRA) or the Savings Incentive Match Plan for Employees (SIMPLE IRA) chosen in large part for their low cost and simplicity. However, for business owners in the right situation, the 401k plan is quickly becoming the plan of choice for its even greater capacity and flexibility.