Record Number of Participants Raised Deferral Rate in 2023, Vanguard Reports
On the other side of the equation, plan loans were up 12% year-over-year, and hardship withdrawals increased modestly.
Tag: hardship withdrawals
401(k) Loans, Hardship Withdrawals at 2-Year High
Both loans and hardship withdrawals have increased to the highest rate since the pandemic, according to Empower’s annual retirement study.
BofA: Hardship Withdrawals Up 36% As More Prioritize Short-Term Needs
Distributions were down and hardship withdrawals were up, though overall saving rates remained steady, according to the bank’s latest participant...
Workers, Employers, Contributed to Retirement Plans at Record Rates
Retirement contribution rates reached record highs, with combined worker and employer contributions equal to 13.9% of pay in 2021, new...
A Reminder to Avoid Fraudulent Hardship Withdrawals
An individual in Ohio was recently indicted by a grand jury on charges that he fraudulently claimed the assets he...
Coronavirus Hardship Withdrawals, Taxes and Your Retirement Plan Clients
Coronavirus-related withdrawals made in 2020 were a financial lifeline for some, but they could also turn into a major tax...
The Year in Hardship Withdrawals and Leakage
Recordkeepers say their worst fears about plan leakage during 2020 have not come to pass, and in fact, the vast...
Servicing Strategies
Compliance When It’s Tough
Advisers should scope out any plan errors to keep their clients on course.
IRS Expands Coronavirus Loan, Distribution Relief
The Internal Revenue Service is expanding the categories of individuals eligible for special loans and distributions and providing updated guidance on the tax treatment of these distributions and...
What Constitutes Retirement Plan Leakage, Really?
Depending on how exactly one defines the term, estimates of 'leakage' from defined contribution retirement plans vary considerably.
Warn Your Clients: Don’t Abuse Coronavirus Hardship Withdrawals
Though retirement plans can allow individuals to self-certify that they qualify for a penalty-free coronavirus-related distribution, should the IRS discover...
In Times of Stress, Timely Communications Make a Big Difference
New data shows the education and guidance firms are providing is helping individuals to stay the course.
Helping Participants After They Have Taken Hardship Withdrawals
Participants who have taken a hardship withdrawal are nearly three-times more likely to feel “always” stressed in general and three-times more likely to have “a lot” of stress...
Simplified Hardship Withdrawal Process Can Still Go Wrong
The IRS is aiming to simplify the hardship withdrawal process, but plan sponsor clients still have to remain mindful of their compliance obligations and safe harbor requirements.
Hardship Withdrawals Spiked, Loans Dipped After Bipartisan Budget Act
The Bipartisan Budget Act of 2018 made it easier for retirement plan participants to access hardship withdrawals without taking loans first; since passage of the law, hardships withdrawals...
Average Deferral Rates Reach 10-Year High of 8.6%
And the use of 401(k) loans fell to a nine-year low of 22.5% in 2018, according to T. Rowe Price’s annual participant data benchmarking report.
Participants Remained Committed to Their DC Plans During 2018
In the first three quarters of 2018, only 2.2% of participant stopped contributing to their plans, ICI data shows.
Assessing Likely Impacts of IRS Hardship Withdrawal Rule Changes
New rules established by Congress and the IRS simplify the process for participants to request a hardship withdrawal of DC...