Page 468 - DCAC February 2024 Files

FALL 2023

Making Retirement Work

INNOVEST’S LATEST UPDATES AND ARTICLES FROM THOUGHT LEADERS IN THE FIRM

Should They Stay or Should They Go?
IN THIS ISSUE
Should They Stay or Should They Go?
The Case for Mid Cap Equities Troy Jensen, QKA, APA Kyli M. Soto, AIF®, CPFA®
Principal Vice President
Nonprofit Spotlight: WellPower
Equity Market Concentration and the AI
Revolution For some 1980’s nostalgia, think back to the Act 2.0 now gives plan sponsors the option
staccato drum beats and strummed electric to further increase that threshold up to
Employee Spotlight: Steven Fraley
guitar chords of English rockers The Clash and $7,000. Any participant with a vested balance
Around the Firm allow your mind to drift into the lyrics. We of $7,000 or less can be forced to take their
apologize if the song is stuck in your head for money out of the plan with required advance
the rest of your day. But there is a nice parallel notice from the plan sponsor. If between
NEW INSTITUTIONAL CLIENTS in the lyrics when we’re thinking about $1,000 and $7,000, this is done as a rollover

Catholic Benefits Association whether terminated participants – those no into an IRA opened in the participant’s name.
Fender Musical Instruments longer employed by your organization but For amounts under $1,000, the rules permit
still in your retirement plan – should stay or that a check be sent directly to the participant
San Diego Union Tribune
go, particularly those with smaller account and the money is taxably distributed out of
Union Square Advisors balances. their retirement savings.
University of Mary Before we dive into the song, some Why would plan sponsors do this? For one,
It is not known whether the listed clients approve or disapprove of background feels appropriate. IRS rules if the employer is generously covering
the services provided. The new clients on page one are listed with
their approval and permission. allow for plan sponsors, when optionally the recordkeeping costs on behalf of its
written into their plan provisions, to remove participants, it is an extra expense for them
terminated participants with small balances. to keep paying for someone who is no longer
Prior to 2023, “small” was any amount up employed. Secondly, it can be more costly to
to $5,000. Congress’ passage of the SECURE all participants remaining in the plan, over

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