Leading Edge Wealth Advisors LLC

The IRS announced Friday a new coalition to combat tax scams and address what has already been “millions in revenue loss and risk to taxpayers.” The Coalition Against Scam and Scheme Threats, or CASST, was conceived by IRS Commissioner Danny Werfel and includes federal and state tax agencies and 60 different private sector organizations, including software and financial companies and national tax professional associations. Through CASST, the groups plan to “work to expand outreach and education about emerging scams, develop new approaches to identify potentially fraudulent returns at the point of filing and create infrastructure improvements to protect taxpayers as well as federal, state and industry tax systems.” Werfel noted in the announcement a need for the group amid a “rising tide of scams and schemes that try to exploit taxpayers and find gaps in government and industry defenses.” Details of the coalition can be found here in this PlanAdvisor article: https://lnkd.in/gG7iHG_v #taxes #irs #taxpayers #scams

Recently released data that provides a snapshot of 401(k) participants’ contribution rates, account balances and overall retirement planning shows that participants ended the second quarter with higher balances, while contribution rates remained steady. Bank of America’s 2Q, 2024 Participant Pulse report shows that more participants (86.7%) kept their contribution rate steady in the second quarter, as compared to the first (81.2%). Overall, they had an average contribution rate of 6.5%, consistent with year-end 2023. In addition, the average contribution rose 20% over the last two quarters, registering at $1,565 in the second quarter, up from $1,312 in the fourth quarter of 2023, but comparable to a year earlier at $1,460 in the second quarter of 2023. But, according to Ted Godbout in his article for the National Association of Plan Advisors in PLANSPONSOR suggests some of the data showed mixed results. Find out what that means here: https://lnkd.in/g22imx2D #planparticipants #plansponsors #hr #humanresources

As most of you know, I love my Clemson University Tigers! Just got this plate! It only took 28 years of trying! #persistance #patience #nevergiveup

Recent lawsuits filed against the group health plans of two large US employers underscore the importance of implementing formal welfare benefit plan governance structures that include fiduciary committees comparable to the governance structures employer sponsors of retirement plans routinely adopt. The ERISA fiduciary standards that are at the heart of 401(k) plan litigation apply equally to all welfare benefit plans, but until recently, employer sponsors of welfare benefit plans seemed unfazed by the trends for 401(k) and 403(b) plans. The filing and initial skirmishes in Lewandowski v. Johnson and Johnson may change that complacency write Alden Bianchi, Jacob Mattison and Sarah G. Raaii in this article for The National Law Journal: https://lnkd.in/gpDBE7NT #fiduciary #fiduciaryduty #benefitplans #401k

A recent survey from market intelligence firm Cerulli Associates highlights a striking disparity in the financial wellness space. According to the report, U.S. Retirement End-Investor 2024, more than 90% of defined contribution recordkeepers provide financial wellness services and 71% of plan sponsors have adopted such programs. Yet at the same time actual engagement remains low, with usage rates for most resources below 20%. And while 41% of participants find their financial wellness resources “very helpful,” a majority (57%) express neutral sentiments. The Leading Edge Wealth Advisors LLC team covers this and more in our August edition of The Retirement Times. #retirement #401k #financialwellness #employeewellbeing

Just more than halfway through 2024, 401(k) plan lawsuits based on the Employee Retirement Income Security Act show no sign of slowing down. After a dip in the number of lawsuits in 2023, they have picked up pace in 2024, with complaints ranging from excessive fees for recordkeeper services to use of managed accounts in plans. The most prolific law firms like Walcheske & Luzi, LLC are filing a consistent number of cases. “Those law firms were digesting their significant case portfolio in 2023 because they filed many cases in 2022, and we feel they were just managing their portfolio,” says Daniel Aronowitz, president of Encore Fiduciary. “But they’re back in action, with each of the law firms essentially filing one or two cases per month.” From 2021 and 2023, there were approximately 200 401(k) plan lawsuits filed, according to Aronowitz: 60 in 2021, 88 in 2022 and 48 in 2023. While 2024 is so far on a similar pace as last year for excess-fee cases—23 in the first half of the year—there have been 43 overall class actions filed involving retirement plans, higher than last year. What should Plan Sponsors be aware of? Details here in this PLANADVISER article: https://lnkd.in/g8GbyQ-h #erisa #plansponsors #hr #fiduciary

Beneficiary designations are a critical but often neglected aspect of retirement plans. Many participants mistakenly believe their retirement plan assets will be distributed according to their will or trust. However, retirement accounts are governed by their own rules, meaning the named beneficiary on the account will typically inherit the funds, regardless of other estate planning documents. The Consequences of Neglected Beneficiary Designations Neglecting to update beneficiary designations can lead to unintended outcomes, such as an ex-spouse or estranged relative receiving the retirement savings. This oversight can cause emotional distress and financial complications for the intended heirs and may result in lengthy and costly legal disputes. We discuss this and more in this month's edition of The Retirement Times #beneficiary #retirement #plansponsor #databreach

Succession and continuity planning is an essential endeavour for high-net-worth entrepreneurial families looking to safeguard their family businesses and the financial security of the next generation. Director and Regional Head for KwaZulu-Natal at Citadel, Nic Horn, provides his expert insights on how to navigate this complex process effectively to ensure that families who run businesses can continue to thrive even if their circumstances change. https://lnkd.in/e2K93FGk #successionplanning #familybusiness #businesses #entrepreneurs

The Internal Revenue Service (IRS) will publish final regulations in the Federal Register on Friday for required minimum distributions (RMD) contained in SECURE 1.0 and 2.0. The final regulations confirm under SECURE 1.0 that when an individual dies after RMDs have begun, yearly distributions must continue to be made to beneficiaries, with the account completely depleted within 10 years. “The final regulations generally finalize the proposed regulations," Robert Richter, Retirement Education Counsel for the American Retirement Association (ARA), said upon an initial review. “One of the more significant items in the proposed regulations that, as we expected, was unchanged by the final regulations is when RMDs must be made when a participant dies after his or her required beginning date." John Sullivan writing for the National Association of Plan Advisors provides an At a Glance look at the two rules released: https://lnkd.in/grkqunRe #retirementplans #401k #rmds #plansponsors

The overall level of optimism about Americans’ retirement readiness has improved quickly over the last 12 months, according to a new report published by BlackRock, but all respondents do not share the improved sentiment. Specifically, BlackRock’s 2024 Read on Retirement report shows more respondents feel on track for retirement (68%) than last year (56%). John Manganaro, Senior Reporter at ThinkAdvisor says a closer look at the data reveals some big confidence gaps and uncertainty around saving and spending: https://lnkd.in/g2ZN_kfh #retirement #401k #hr #retirementplanning