August 11, 2017

Fred Reish Quoted in CNBC on 401(k) Re-Enrollment

Los Angeles partner Fred Reish was quoted in a CNBC article titled “Don’t Fear a 401(k) Re-enrollment Notice, It’s a Good Thing.” More companies are re-enrolling employees in their 401(k) plans, so that retirement savings are moved into the default investment option, unless the participant designates another choice.

A recent Callan study found that 88.2 percent of 401(k) plans used target-date funds as their default investment options. Federal law offers some legal protection in the form of a “safe harbor” when plan sponsors use target-date funds as default options.

“The primary motivation is to improve participant investing… [b]ut the safe harbor helps, because it takes away the feeling of risk," Fred noted.

Fred also stated that companies shouldn’t complete re-enrollment more often than every two to three years, to allow for individual circumstances to change.

Read “Don’t Fear a 401(k) Re-enrollment Notice, It’s a Good Thing.”

Full Article
The Faegre Drinker Biddle & Reath LLP website uses cookies to make your browsing experience as useful as possible. In order to have the full site experience, keep cookies enabled on your web browser. By browsing our site with cookies enabled, you are agreeing to their use. Review Faegre Drinker Biddle & Reath LLP's cookies information for more details.