happy holidays

December 2017

Inside this issue:


HAPPY HOLIDAYS FROM THE MONTGOMERY RETIREMENT PLAN ADVISORS TEAM

All of us at Montgomery Retirement Plan Advisors extend our best wishes to you and your families for a wonderful holiday season and exceptional 2018.We saw plenty of activity in the retirement plan landscape in 2017—with delays and updates to the DOL’s Fiduciary Rule to tax reform discussions. We look forward to what 2018 will bring and keeping you abreast of the current events within the industry.

To the new clients that joined us in 2017, and to those friends we have had the honor of serving since 2004, we are sincerely grateful for the privilege of serving as your retirement plan advisors.  To our partners and peers within the retirement plan industry, we appreciate your confidence in us and are humbled by the thought leadership and professionalism displayed by so many in our field.

- Michael Montgomery and the entire MPRA team


DANGEROUS ASSUMPTIONS OF MANY PLAN FIDUCIARIES

~W. Michael Montgomery, CPFA, AIF, TGPC, CLU, CFS, C(k)P

I recently read a very good article by Nevin E. Adams, JD, Chief of Communications for the American Retirement Association, entitled 6 Dangerous Fiduciary Assumptions. Published in NAPA NET, the piece discusses assumptions that are frequently repeated but often incorrect. Did you know that hiring an outside fiduciary doesn’t make you any less of a fiduciary yourself? Or that the date named in the law as the deadline for depositing plan contributions is not the real date that is enforced?

The article also discusses in layman’s terms a frequently violated investment policy rule, fees you shouldn’t deduct from plan assets, and other popular misconceptions. Click here to read the full article.


PARTIAL PLAN TERMINATIONS – DO YOU HAVE ONE?

What constitutes a partial plan termination? There is a rebuttable presumption that a partial termination has occurred if 20 percent or more of the participants are involuntarily terminated. The calculation is done as follows:

  • Number of participating employees on the first day of the plan year
  • Add to this number the participating employees who entered the plan during the plan year
  • Divide the sum of 1 and 2 by the number of participating employees terminated during the year due to employer initiated actions

For further information on partial plan terminations, please visit the IRS website.


NEWS FROM MRPA

We are pleased to announce that a key member of our firm, David M. Montgomery, CPFA, AIF, CRPS, has been nominated for NAPA’s “Young Guns, Top Plan Advisors Under 40” list! Those who make the final Young Guns list will be acknowledged at this year’s NAPA 401(k) Summit in April 2018.


No strategy assures a profit or protect against loss.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing.

For Plan Sponsor use only – Not for use with Participants or the General Public. This information was developed as a general guide to educate plan sponsors, but is not intended as authoritative guidance or tax or legal advice. Each plan has unique requirements, and you should consult your attorney or tax advisor for guidance on your specific situation. In no way does advisor assure that, by using the information provided, plan sponsor will be in compliance with ERISA regulations. 

Montgomery Retirement Plan Advisors does not warrant and is not responsible for errors or omissions in the content of this newsletter.

Montgomery Retirement Plan Advisors offers investment advisory services through Independent Financial Partners, a Registered Investment Advisor. Independent Financial Partners and Montgomery Retirement Plan Advisors are separate entities.


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©2017 Montgomery Retirement Plan Advisors, All Rights Reserved.

Montgomery Retirement Plan Advisors offers investment advisory services through Independent Financial Partners, a Registered Investment Advisor. Independent Financial Partners and Montgomery Retirement Plan Advisors are separate entities.