More Guidance Is Available on Target Date Funds
Last year, the U.S. Department of Labor issued general guidance for plan fiduciaries about selecting and monitoring TDFs in 401(k)s and similar participant-directed individual account plans. Tips for ERISA Plan Fiduciaries is available at http://tinyurl.com/DOLTipsAboutTDFs.
The Defined Contribution Institutional Investment Association (DCIIA) has published a guide concerning TDFs that is intended to supplement the Department of Labor’s suggestions.
The DCIIA Guide to U.S. Department of Labor Tips on Selecting Target Date Funds offers discussions on how to develop a prudent process, portfolio construction considerations, asset allocation, and the use of active and passive funds. Also included is a review of factors related to off-the-shelf and custom TDFs. See the guide at http://tinyurl.com/DCIIATargetDateFunds.
For plan sponsor use only, not for use with participants or the general public. This information is not intended as authoritative guidance or tax or legal advice. You should consult with your attorney or tax advisor for guidance on your specific situation.
Kmotion, Inc., P.O. Box 1456, Tualatin, OR 97062; 877-306-5055; www.kmotion.com
© 2014 Kmotion, Inc. This newsletter is a publication of Kmotion, Inc., whose role is solely that of publisher. The articles and opinions in this publication are for general information only and are not intended to provide tax or legal advice or recommendations for any particular situation or type of retirement plan. Nothing in this publication should be construed as legal or tax guidance; nor as the sole authority on any regulation, law or ruling as it applies to a specific plan or situation. Plan sponsors should consult the plan’s legal counsel or tax advisor for advice regarding plan-specific issues.