SHRM_TL_3.16.18

White Papers by Madison Pension Services, Inc.

  • When Does One-Year Equal Nine Months (Or Less)?

    We know that the CARES Act doubled retirement plan loan limits for qualified individuals eligible for a Corona-Virus Related Distribution (CRD) to be the lesser of $100,000 or 100 percent of the participant's vested account balance. To qualify, the loan must be made within 180 days after the...
  • UPDATE ON CORONA VIRUS RETIREMENT RELATED LEGISLATION

    I thought that the most important thing that I could do with this month’s newsletter is to provide you with an update of any retirement related legislation as it moves through Congress. Though negotiations are not over, on March 22nd Senate Majority Leader Mitch McConnell (R-KY) released...
  • The Threat of Zombies is Real!

    Consumer-debt that is years or even decades old is known as “zombie” debt in the debt buying industry and represents a growing cause of concern for consumers. Just like real life zombies (that is probably an oxymoron) these “almost dead” consumer debts can see new life many years after they...
  • MILLENNIALS ARE NOT SAVING FOR RETIREMENT BECAUSE… THE SKY IS FALLING?

    Well OK. Chicken Little notwithstanding, the sky is not actually falling. But for millennials, it might as well be. The barrage of depressing news coupled with the fact that the impact of climate change seems to be accelerating leaves many of them to be pessimistic about the future. 88% of...
  • BABY BOOMERS IN STUDENT DEBT?

    Seniors with student debt? Surely that is some sort of a mistake. No, it’s not. A recent article in the Wall Street Journal (WSJ) shined a light on a little known and growing problem. Seniors that have taken on student debt. Some took out loans to help pay for their children’s college tuition...
  • The Notorious ESG

    Environmental, social and governance investing – better known as ESG to those in the know (by the way, I was one of those not in the know) is a hotly debated topic in the 401(k) world. Research from Cerulli Associates, which specializes in worldwide asset management and distribution analytics,...
  • AMERICANS STILL HAVE HIGH HOPES OF RETIRING EARLY & RETIREES UNDERSTANDING OF TAXES IN RETIREMENT

    Findings from MassMutual’s 2018 “State of the American Family” illustrates that on average, respondents expect to retire at age 62, as opposed to age 64 when the study was last conducted five years ago in 2013. Surprisingly, 40% of the respondents from the study intend to retire before age 60,...
  • 401(k) PLANS, STUDENT LOANS & THE PRIVATE LETTER RULING AND

    For many Millennials saving for retirement has become a binary choice. Either they choose to pay down their student debt or they choose to save for retirement. Either one or the other. As many Millennials are in the earliest years of their working careers, difficult choices about how to allocate...
  • PICKLEBALL DIVIDES A RETIREMENT COMMUNITY & HIGHLIGHTS THE STRAIN OF NOT HAVING ENOUGH RETIREMENT IN

    A recent article in the Wall Street Journal (WSJ) highlighted the fact that many middle-class boomers are financially unprepared for their “golden years” and how this led to social tensions within a specific retirement community.
  • The Timing of Safe Harbor Provisions

    Is It Too Late to Establish a 401(k) Safe Harbor Plan for 2018? The answer of course is – it depends. If you currently sponsor a retirement plan that includes a 401(k) feature, to use either of the standard 401(k) safe harbor provisions, (the mandatory employer matching contributions or the...
  • SAVING FOR YOUR KIDS' COLLEGE vs. SAVING FOR RETIREMENT - IF YOU LAG BEHIND, CAN YOU CATCH UP?

    When it comes to growing your retirement nest egg, conventional wisdom calls for us to start early and then to save 10% - 15% of your income. That’s great but for many of us, totally unrealistic. The day to day expenses of the child rearing years, coupled with the need to save for college can...
  • FOR GOODNESS SAKES, PAY ATTENTION TO THOSE 401(k) STATEMENTS!

    Pay Attention To Your 401(k) Statements So here is the drill – You receive your quarterly 401(k) statement and you: a) Review it carefully so that you are reasonably comfortable that all of your deferrals have been posted to your account b) Review it carefully to see that the automatic...
  • The Fidelity Bond vs. Fiduciary Insurance - Which one MUST you have?

    Clients sometimes get confused between a fidelity bond vs. fiduciary insurance. They are not the same thing. One is mandated, one is not.
  • A SEP-IRA or a Solo 401(k) Plan - Which is Better?

    Fortune Magazine recently ran an article touting the benefits of a Solo 401(k) over a SEP-IRA for sole proprietors or single member LLCs with no employees. And for those of you who are sole proprietors or single member LLCs who are looking to maximize your contribution (and thus your tax...
  • Has It Really Been Forty Years?

    Madison Pension Services first opened its doors on July 1, 1978. Being an actuary, it is not hard to figure out that July 1, 2018 will represent our fortieth year in business. Forty years is a long time and it has gone by in the blink of an eye. For you millennials and Gen Xers, let’s take a...