Tastes Great vs. Less Filling

Tastes Great vs. Less Filling

By: David I Gensler, MSPA, MAAA, EA

When I was younger (much, much younger) Bud Lite ran a series of commercials where quasi- celebrities (most of them were retired athletes) argued back and forth about whether they drank Bud Lite because it “tasted great” or because it had less calories and thus was “less filling” (they had not yet discovered that carbs were bad for you – I told you; this was many, many years ago).

Anyway, this same argument now exists in the 401(k) world in a slightly different form. Which is better – Bundled or Unbundled?

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IRS Guidance On Hardship Withdrawals: How To Shift The Documentation Responsibility To The Participant

By: David I Gensler, MSPA, MAAA, EA

In April of 2015, in an article in the IRS publication Employee Plan News (yes, there really is such a publication) they clarified that when taking a hardship withdrawal, that it was not sufficient for certain third party administrators (TPAs) to rely on plan participants to keep copies of the documents that proved a hardship withdrawal was due to “an immediate and heavy financial need.”  Documents like the explanation of benefits for medical expenses, the purchase agreement for a participant’s primary residence and/or an invoice for funeral expenses are all examples of the paperwork that the TPA should collect before granting a hardship withdrawal. The IRS further stated that, when examining a plan under audit, the failure of the TPA to keep their own independent records was a plan qualification issue. Whenever the qualification of the plan is at risk, the topic gets my attention.

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