Fiduciary Focus: Is 401(k) Loan Risk on Your Radar?

Watch the replay of our May 9th webinar Industry experts at Drinker Biddle & Reath believe that 401(k) loan defaults represent a ripening fiduciary jeopardy. Plan sponsors may have a false sense of security about the fiduciary risks of 401(k) loans, not...

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Reducing the Fiduciary Risks of Participant Loans

Do plan sponsors have a false sense of security when it comes to the fiduciary risk related to 401(k) loans? According to prominent ERISA attorney Bruce Ashton, they may not recognize that participant loans are plan investments and must...

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PLANSPONSOR: Fiduciary Responsibilities for DC Plan Loans

Multiple stories in the press about the fiduciary exposure of 401(k) loan programs have the same theme: Plan loans are investments.  What does that mean for plan sponsors? Loan programs are on the DOL’s radar as investments “Because the Department of...

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Top 4 Reasons Plan Fiduciaries Should Protect 401(k) Loans

Your participants’ retirement assets are too important to leave unprotected, and as a plan fiduciary, you have an obligation to preserve that benefit. Consider these top four reasons – straight from the ERISA statutes and the U.S. Code –...

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The Inconvenient Truth of Fiduciary Loan Regulation

Plan sponsors have historically treated 401(k) loans as an administrative program outside the boundaries of fiduciary standards and review.  The truth, however inconvenient it may be, is that the DOL has taken the position that a participant loan is a...

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Tick Tock Goes the Loan Default Clock

In the minute it takes you to read this, $11,415 in 401(k) loans will default. Precious retirement savings will evaporate.     Each second that passes, more employees default on their 401(k) loans. Loan defaults are a major source of retirement plan...

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2018 Planning: Preventing Leakage From 401(k) Loans

Across the country summer is winding down, football is back in season and parents are buying the latest backpacks and notebooks their children need for school.  Another fall ritual?  Business planning to identify and finalize priorities for the coming...

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Alston & Bird: Future Shock – The Retirement Loan Default Crisis

Loan defaults are a serious problem in the 401(k) industry, one that is just becoming apparent as a leading cause of the retirement “leakage” crisis plaguing employer-sponsored retirement plans, and potentially setting up many hard-working Americans for future shock...

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Is Financial Wellness Missing the Point?

By George White, CEBS Financial wellness is the latest retirement topic du jour, with numerous programs marketed and panelists devoting coveted time at industry conferences. What’s not to like about helping people budget and reduce stress? If there is predictive...

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Myths and Facts About 401(k) Loans

Myth: 401(k) loans are the problem. Fact: Loan DEFAULTS upon job loss are the problem. Participants value loans, and may be more likely to participate in the plan when they have the ability to borrow. Myth: Loan defaults are a limited...

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