"[T]he additional contribution is permitted if it brings the cumulative participant contributions closer to an average of $5,000 per year. Determining how many years of service with a single employer could be complicated when a participant does not work full-time, works only a partial year, or works at different schools within a public school district or different hospitals within a system."   MORE >>

"[1] The frequency is high -- comparable to the record 2020 rate, with 60% of cases filed by the Capozzi Adler law firm.... [2] The motion to dismiss defense tactic is DOA as the pleadings standard is diluted.... [3] Most cases are settled and not litigated to conclusion, with settlements averaging 30-40% of the alleged damages model.... [4] Plaintiffs are alleging imprudence of isolated investments, even when the overall fees of the plan are low and contain low-cost index funds.... [5] One out of every three cases is against active target-date funds in the allegedly wrong share class, with Fidelity Freedom funds under attack.... [6] Nearly every case alleges excessive recordkeeping fees based on misleading and inappropriate benchmarks."   MORE >>

"A consulting firm's data breach has triggered a second class action lawsuit by an affected participant on behalf of a class of some 2,500,000 individuals." [Torrano v. Horizon Actuarial Services LLC, No. 22-1674 (N.D. Ga. complaint filed Apr. 28, 2022)]   MORE >>

"Prior to Fidelity's announcement, the Plan Sponsor Council of America found little interest based on a snapshot survey of 63 DC executives published a week after the DOL issued its March 10 guidance  ... A week before the DOL issued its guidance, the National Association of Plan Advisors announced the results of a reader poll in which 88% of the 223 respondents said recommending cryptocurrency as a stand-alone investment option was 'not on my "to do" list.' "   MORE >>

"Anyone can contribute to a Roth 401(k), if available, regardless of income level.... [O]nly individuals earning less than $144,000 in 2022 -- $214,000 for married couples -- can contribute to a Roth IRA.... In 2022, you can stash away up to $20,500 in a Roth 401(k) ... Roth IRA contributions, by comparison, are capped at $6,000 ... One potential disadvantage of using a Roth 401(k) -- at least relative to a Roth IRA -- is that you'll have to take IRS-mandated required minimum distributions (RMDs) starting at age 72."   MORE >>

"The letter , penned by [U.S. Sen. Elizabeth Warren (D-Mass.)] and U.S. Sen. Tina Smith (D-Minn.), questions what risk Fidelity attaches to Bitcoin that it offers to its customers and how Fidelity plans to address those risks.... 'The letter itself is highly misinformed and misleading,' says Louis Harvey, president and CEO of Dalbar Inc. 'The inclusion of an asset class is not dangerous unless the allocation of an investor's assets in that class is excessive.' "   MORE >>