The document discusses options for defined benefit plan participants to receive a lump sum distribution rather than annuity payments. It notes that over 50% of defined benefit plans offer a lump sum option in addition to an annuity. A lump sum could provide greater control, investment flexibility, and ability to leave assets to heirs compared to a lifetime annuity. However, annuities guarantee lifetime income and reduce investment risks. The document provides steps for evaluating the lump sum option, including reviewing plan documents to determine eligibility, restrictions, and payment amounts with a financial advisor.
September ViewPoint Newsletter from Steve Stanganelli CFP(R)Steve Stanganelli
Welcome to the September 2011 edition of the ViewPoint Newsletter from Steve Stanganelli, CFP(R) of Clear View Wealth Advisors, a fee-only RIA located in Massachusetts. In this issue, retirement income planning, college funding strategies and tax tips for business owners and those going through divorce are shared.
Principal protection with upside potential. 20% rollover bonus. 401k,IRA rollover eligible. For more information call (888) 235-8060 or visit us at www.AdvisorRick.com.
Mary Beth Gray provides a "how to" of the issues you need to consider when creating a distribution policy, and what is or is not permitted by the IRS. Tabitha Croscut discusses diversification language in plans and what the IRS decided was the definition of a "qualified participant."
The past 30 years has born witness to the collapse of the private pension system with for-profit employers, tax-exempt entities and now the governmental sponsors replacing defined benefit pension programs with defined contribution plans. This practice spawned a well-documented transfer of investment and funding risk from employer to employee. Now, most defined contribution plans render the employee the sole decision maker on the four factors that determine an employee's ability to retire successfully: contribution rate, investment strategy/return, time horizon, and spending needs in retirement.<br /><br /> In this presentation we will address what employers can do to help employees meet the demands of the new retirement plan era.
The CARES Act: A Simple Summary for InvestorsSusan Langdon
Sweeping legislation to respond to COVID-19 pandemic was cleared by Congress and signed into law on March 27, 2020. The Coronavirus Aid, Relief, and Economic Security Act (“the CARES Act”) authorizes more than $2 trillion to battle COVID-19 and its economic effects. The law is wide-ranging from support to the health care system’s fight against the coronavirus, as well as direct payments to individuals, expanded unemployment insurance, loans to small and large businesses, and support for state and local governments.
This document provides an overview on retirement investor’s relief in the government’s stimulus bill to help alleviate the financial strains from the coronavirus.
As one become financially literate it would be beneficial to be familiar with useful terminology used on a consistent basis that involves making financial decisions. Wealth building begins with comprehending. Should an individual seek the proper guidance and do the needed research to understand money the economic crisis recovery will happen. Money behavior and practices are usually learned at home or from surroundings. Be a change agent. Be accountable of your own financial security and start securing today!!
Learn Today...Lead Tomorrow...Demonstrate Forever
LaKesha Landers, Program Director, Office of Financial Literacy
September ViewPoint Newsletter from Steve Stanganelli CFP(R)Steve Stanganelli
Welcome to the September 2011 edition of the ViewPoint Newsletter from Steve Stanganelli, CFP(R) of Clear View Wealth Advisors, a fee-only RIA located in Massachusetts. In this issue, retirement income planning, college funding strategies and tax tips for business owners and those going through divorce are shared.
Principal protection with upside potential. 20% rollover bonus. 401k,IRA rollover eligible. For more information call (888) 235-8060 or visit us at www.AdvisorRick.com.
Mary Beth Gray provides a "how to" of the issues you need to consider when creating a distribution policy, and what is or is not permitted by the IRS. Tabitha Croscut discusses diversification language in plans and what the IRS decided was the definition of a "qualified participant."
The past 30 years has born witness to the collapse of the private pension system with for-profit employers, tax-exempt entities and now the governmental sponsors replacing defined benefit pension programs with defined contribution plans. This practice spawned a well-documented transfer of investment and funding risk from employer to employee. Now, most defined contribution plans render the employee the sole decision maker on the four factors that determine an employee's ability to retire successfully: contribution rate, investment strategy/return, time horizon, and spending needs in retirement.<br /><br /> In this presentation we will address what employers can do to help employees meet the demands of the new retirement plan era.
The CARES Act: A Simple Summary for InvestorsSusan Langdon
Sweeping legislation to respond to COVID-19 pandemic was cleared by Congress and signed into law on March 27, 2020. The Coronavirus Aid, Relief, and Economic Security Act (“the CARES Act”) authorizes more than $2 trillion to battle COVID-19 and its economic effects. The law is wide-ranging from support to the health care system’s fight against the coronavirus, as well as direct payments to individuals, expanded unemployment insurance, loans to small and large businesses, and support for state and local governments.
This document provides an overview on retirement investor’s relief in the government’s stimulus bill to help alleviate the financial strains from the coronavirus.
As one become financially literate it would be beneficial to be familiar with useful terminology used on a consistent basis that involves making financial decisions. Wealth building begins with comprehending. Should an individual seek the proper guidance and do the needed research to understand money the economic crisis recovery will happen. Money behavior and practices are usually learned at home or from surroundings. Be a change agent. Be accountable of your own financial security and start securing today!!
Learn Today...Lead Tomorrow...Demonstrate Forever
LaKesha Landers, Program Director, Office of Financial Literacy
The legislative landscape in which retirement plans must operate is constantly evolving to meet the need for an appropriate level of industry regulation. Legislative and regulatory activity during 2013 to date has created numerous opportunities and challenges that retirement plan sponsors must address. In this program, Erik Daley, CFA, will provide an overview of this year's legislative and regulatory developments and focus on practical, consultative tips on how they might apply to your retirement plan.
TOPIC: Survey Says: Tax Reform & Client Planning - What Advisors Are Seeing &...theBurgessGroup
MARKET TREND: Change creates opportunity. Facing uncertainty head-on with proactive, flexible planning can allay client concerns and give them a sense of control.
SYNOPSIS: While President Trump and the Republican-controlled
Congress have promised major tax reform, uncertainty remains as to the
final outcome. Despite this, the advisors surveyed indicate that many clients are still moving forward if the planning approaches satisfy their practical needs and provide flexibility.
The latest Retirement Plan News contains articles on the following: 1) Make Benchmarking Your Plan An Annual Exercise 2) Employer Contribution Trends 3) QDIAS Ten years On
Common Factors Affecting Retirement IncomeDolf Dunn
People have two very distinct investment periods in their lives, Accumulation and Distribution. Brokers are paid in the accumulation phase, not so much in the distribution phase. Fee-based Financial Planners, like myself, are paid along the way to give our clients great advice in both phases of their lives. Distribution phase is the more difficult of the two to get right. If you do not do proper planning, one risks running out of money before your last breathe. Not to be entrusted to amateurs. I can help, please give me a call.
Even with the most earnest intentions, mistakes inside of a retirement plan will most likely happen from time to time. Plan sponsors can take solace in knowing that there is a corrective solution for nearly every compliance problem. Knowing how to correct a plan error will help plan sponsors act swiftly so as not to ripen the problem should one occur. It can also help save the plan sponsor money. In this program, Multnomah Group will provide an overview of the correction programs available through both the Internal Revenue Service (for Internal Revenue Code issues) and the Department of Labor (for issues under the Employee Retirement Income Security Act).
Make sure government data is as safe as it can be. Secure documents using facial recognition to ensure confidential information is seen only by intended parties.
The legislative landscape in which retirement plans must operate is constantly evolving to meet the need for an appropriate level of industry regulation. Legislative and regulatory activity during 2013 to date has created numerous opportunities and challenges that retirement plan sponsors must address. In this program, Erik Daley, CFA, will provide an overview of this year's legislative and regulatory developments and focus on practical, consultative tips on how they might apply to your retirement plan.
TOPIC: Survey Says: Tax Reform & Client Planning - What Advisors Are Seeing &...theBurgessGroup
MARKET TREND: Change creates opportunity. Facing uncertainty head-on with proactive, flexible planning can allay client concerns and give them a sense of control.
SYNOPSIS: While President Trump and the Republican-controlled
Congress have promised major tax reform, uncertainty remains as to the
final outcome. Despite this, the advisors surveyed indicate that many clients are still moving forward if the planning approaches satisfy their practical needs and provide flexibility.
The latest Retirement Plan News contains articles on the following: 1) Make Benchmarking Your Plan An Annual Exercise 2) Employer Contribution Trends 3) QDIAS Ten years On
Common Factors Affecting Retirement IncomeDolf Dunn
People have two very distinct investment periods in their lives, Accumulation and Distribution. Brokers are paid in the accumulation phase, not so much in the distribution phase. Fee-based Financial Planners, like myself, are paid along the way to give our clients great advice in both phases of their lives. Distribution phase is the more difficult of the two to get right. If you do not do proper planning, one risks running out of money before your last breathe. Not to be entrusted to amateurs. I can help, please give me a call.
Even with the most earnest intentions, mistakes inside of a retirement plan will most likely happen from time to time. Plan sponsors can take solace in knowing that there is a corrective solution for nearly every compliance problem. Knowing how to correct a plan error will help plan sponsors act swiftly so as not to ripen the problem should one occur. It can also help save the plan sponsor money. In this program, Multnomah Group will provide an overview of the correction programs available through both the Internal Revenue Service (for Internal Revenue Code issues) and the Department of Labor (for issues under the Employee Retirement Income Security Act).
Make sure government data is as safe as it can be. Secure documents using facial recognition to ensure confidential information is seen only by intended parties.
Proposición presentada por el Grupo Municipal de UPyD en Getafe para pedir la dimisión de los miembros del Consejo de Administración, de la Asamblea General y de la Comisión de Control de Caja Madrid que hayan sido nombrados o representen al Ayuntamiento de Getafe
Indian Dental Academy: will be one of the most relevant and exciting training center with best faculty and flexible training programs for dental professionals who wish to advance in their dental practice,Offers certified courses in Dental implants,Orthodontics,Endodontics,Cosmetic Dentistry, Prosthetic Dentistry, Periodontics and General Dentistry.
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Help Employees Reach Their Financial Goals - Regardless of the size of your business or the
type of benefits you provide, the Employee
Financial Resource Program offers you many
advantages • Highlights what you provide to your
employees as the foundation of their financial
security, which reinforces goodwill and helps
employee morale and retention
• May increase productivity as employees
gain more control over their financial future
• Allows you to distance yourself from offering
financial advice
• Facilitates offering another valuable benefit to
your employees, with no cost to you
There are many sources of financing available to a business owner. David Lerner Associates offers this list of loan sources - it should provide some ideas.
Impact of the SECURE Act 2019 on NQDC Plans and Retirement Distribution Elect...Fulcrum Partners LLC
This Fulcrum Partners Executive Benefits Advisory Report, “Impact of the SECURE Act 2019 on NQDC Plans and Retirement Distribution Elections,” addresses effects the SECURE Act will also have on nonqualified deferred compensation (NQDC)plans, specifically looking at the matter of retirement distribution elections.
Changing Jobs? Take Your 401(k) and ... Roll It!Dolf Dunn
If you have recently lost your job, or are changing jobs, you may be wondering what to do with your 401(k) plan account. It is important to understand your options
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act), signed into law by President Trump on March 27, 2020, provides various forms of relief for the economic impact of the Coronavirus crisis.
Auto Workers Pension Defined Benefit Lump Sum vs. Annuity
1. Retirement Decision Points | Investor Perspective
Defined benefit lump sum vs. annuity
Beyond an annuity, you may have another payout option from your defined
benefit plan you should consider.
According to the Bureau of Labor Statistics, 20% of all American workers participate in defined benefit
plans.1 If you are one of them, there is a better than 50% chance that your employer’s plan includes a
lump sum distribution and rollover option in addition to an annuity.2 That means under certain
circumstances, you can choose to receive a one-time cash payment that reflects the value of your
Would you like greater control annuity benefits from the plan rather than the annuity payments traditionally associated with defined
over your retirement assets benefit plans. Moreover, in some cases you may be able to receive a lump sum distribution when you
and the way they are invested? leave your job or attain age 62 — even if it is before you reach the plan’s retirement age. Your financial
advisor can help you evaluate the pros and cons of a lump sum distribution and rollover vs. an annuity.
Are you concerned that your
employer may not be able to
Should I consider a lump sum distribution and rollover?
fulfill its commitment to you to
make lifetime annuity While there are benefits to receiving fixed annuity payments, including having a guaranteed lifetime
payments? opportunity to protect your stream of income and the reduction of investment risks, there are also
potential downsides.3 For example, inflation may erode your purchasing power and you have no access
Would you like the opportunity to the principal behind your annuity payments. That may limit your ability to pass along wealth to your
to protect your retirement heirs. Keep in mind, too, that annuity payments from your plan are irrevocable and are not eligible for
purchasing power from rollover.
inflation?
You may want to discuss lump sum distribution and rollover possibilities with your financial advisor if your
Do you hope to pass on goals are to potentially achieve higher rates of investment returns, greater cash flow than your plan’s
retirement assets to your heirs? annuity would provide and be able to leave remaining funds to beneficiaries.
Your financial advisor: Helping you evaluate your options
As you consider your options, you and your financial advisor should discuss several questions, including,
but not limited to the following:
Does my defined benefit plan allow lump sum distributions?
You may not be able to determine this from the plan’s distribution forms, because even if your plan
allows the option, the forms may not include it. Instead, you and your financial advisor should review the
formal plan document or the summary plan description (SPD), ask your human resources department or
log on to your benefits web site for a copy.
Are there restrictions?
Retirement benefits can only be distributed after a “triggering event,” (e.g., attainment of retirement age,
disability, death or separation from service). Because plans differ, particularly with regard to retirement
age, the only way to determine if you qualify for a distribution is to review the plan document.
How much will my lump sum be?
Cash balance plans automatically communicate the value of the benefit to participants in the form of a
hypothetical balance that is close to the lump sum calculation. Lump sum calculations for traditional
defined benefit plans are based on plan specified interest rates and mortality tables. IRS rules for
calculating lump sum payments from traditional defined benefit plans are changing and the result may be
that you could receive a smaller lump sum under the new rules. If you are considering this option, you
may want to complete your analysis early in the process.
1 Bureau of Labor Statistics, Retirement Benefits, March 2010
2 U.S. Census Bureau, Statistical Abstract of the United States, 2010
3 Guaranteed annuity payments are subject to the claims-paying ability of the insurance carrier (or employer plan, if self-annuitizing).
(1)