Retirement Plan Advisors Advantage

My Two Cents For Retirement Plan Providers.

Might be worth more.

I've been an ERISA attorney for 21 years, so like the J.K. Simmons character in the Farmers Insurance commercials, I know a thing or two because I've seen a thing or two. I've seen quite a few things including things that were something out of the theater of the absurd. As part of my practice, I always try to offer advice to other plan providers based on my experience. My "two cents" might be worth more than two cents, maybe to many it won't. However, my "two cents" is culled from three decades of work as an ERISA attorney.

To read the article, please click here.

The SECURE Act doesn't change one big problem for MEPs.

Nothing has changed.

While I loved the fact that pooled employer plan (PEP) is an option as a multiple employer plan (MEP) under the SECURE Act, the problem is that one huge problem concerning MEPs remains and can't be fixed by law. It's the slow sales cycle in building up MEP assets to achieve the affordability that the MEPs are advertised for.

Creating a successful MEP is all about creating a plan of critical mass to support the fee charges and to support the costs of a plan audit. The problem is that the sales cycle for a MEP is very difficult and slow. I'm involved with a MEP that now has $87 million and that took 5 years to achieve.

It's important that any MEP has a strong method of distribution. Having access to thousands of potential adopting employers is great, but the chances of them signing up are very small. No law can get out of a long time and hard work that is required to starting a MEP.

The Safe Harbor Change for Non-Electives is Big.

It is huge.

The SECURE Act created much-needed change to the safe harbor non-elective contributions, making it more of a weapon to combat failed discrimination testing. Previously, a plan sponsor could only adopt the non-elective contribution prior to the Plan Year with a notice. Now, the contribution can be added at any time during the year and even after the Plan Year has ended if the plan sponsor ups the contribution to 4% of pay (but the plan still needs to pass the matching ACP test if adopted after the year). Regardless of the timing, the notice requirement is gone for good.

For clients that have testing issues because of their demographics, this is something they should know about. The increased flexibility of adding the non-elective could go a long way in minimizing the need for deferral refunds or corrective QNEC contributions.

Cybersecurity is an important concern.

If you're in the business, it should be.

Without fail, every day I get emails that want to target one or more of my important online accounts. Whether it's Amazon or my email, so online crook is trying to phish for me online access by trying to trick me.

As a retirement plan provider, these threats are graver because hacking could make you liable for losses from the assets of your client's retirement plans. You need a process in place to make sure cyber attacks don't negatively impact your business. That means hiring cybersecurity specialists to make sure that someone who shouldn't have access to your systems, doesn't.

Don't make bad hires.

It's bad for business.

It was clear by the time that Carlos Beltran was interviewing for the Mets manager job that he was somehow involved with the Houston Astros being accused of stealing signs. I don't know what Carlos Beltran told General manager Brodie Van Wagenen about the investigation, but whatever he said, it didn't bother Van Wagenen at all. After hiring Beltran, Van Wagenen claimed that he didn't see how what Beltran did as a player for the Astros would affect his job as Mets manager. Well two months later, it did as Beltran and the Mets parted ways. It's clear that Beltran either lied or the Mets showed no concern. Regardless, the Mets have egg on their face.

When hiring people for your staff, you have to perform due diligence and if there is a concern as to any issues concerning a candidate, you need to know before you make the hire. I've seen so many bad hires when I've been in the industry and some unpleasant truths concerning a candidate are only uncovered after the employee is hired, then fired. Hiring decisions without all the facts is likely walking blindly, you're going to end up getting hurt.

Disney World national event starts tomorrow.

Registration for all events open including Houston and St. Louis.

That 401(k) Conference is the most fun 401(k) advisor out there with a price point that won't break your back.

$100 gets you at the regional events (not Disney), 4 ho urs of content to grow your advisory business, lunch, a stadium tour and a meet and greet with a baseball legend.

Don't forget, our national

conference for March 2020 starts tomorrow.

Family fun at Disney World with a conference that won't break your bank if you're a sponsor or attendee.

The Retireholiks will be recording an episode of their show at our event.

There will be presentations on the SECURE Act, HSAs, MEPs and PEPs, and social media and marketing to name a few presentations.

Our special guest for the second day of the conference on Wednesday, March 11th is Hall of Famer Goose Gossage. Tuesday's special guest is Rangers great Ron Duguay.

To sign up, click here.

Our first regional event for 2020 will be Friday, April 17th in Houston Texas. Sponsorship information can be found here . Registration link is here .

Our special guest for the Houston event is Astros legend J.R. Richard,

We will be hosting That 401(k) Conference in St. Louis on Friday, May 8th. Sponsorship brochure can be found here , the registration like can be found here .

The last event for the first half of 2020 will hails from Target Field in Minneapolis on Friday, June 5th. Sponsorship information can be found here, the registration link can be found here.

The Rosenbaum Law Firm Advisors Advantage, January 2020
Vol. 11 No. 1

The Rosenbaum Law Firm P.C.

734 Franklin Avenue, Suite 302
Garden City, New York 11530
516-594-1557

Fax 516-368-3780

[email protected]

www.therosenbaumlawfirm.com