Vanguard CIO Addresses a Dismal Market

With inflation still high, the Federal Reserve continuing to ratchet up interest rates, and both stocks and bonds well into negative territory so far this year, is there any respite or sanctuary? We asked Vanguard Chief Investment Officer Greg Davis to give his perspective on the markets. Read more.

Watch for New IRS W-4P, W-4R Withholding Forms Available in Early 2023

Effective January 1, 2023, the IRS will split the current W-4P withholding form into two:

• Form W-4P will be used only for periodic distributions (i.e., annuity or similar type payments). 
• Form W-4R will be used for nonperiodic distributions (those payable on demand). Learn more about the new form on the IRS website.

Participants can now choose a federal withholding rate between 0–100% (instead of a minimum of 10%) to be applied to distributions, such as hardship distributions or required minimum distributions, that are not eligible for rollover into another retirement vehicle. Distributions eligible for rollover and paid to the participant are still subject to a mandatory 20% federal withholding rate, which can be increased by the participant.

By January 1, 2023, updates will be made to all distribution forms. The plan and employee websites will also be updated with W-4R withholding instructions, the new and revised forms, and new withholding rates, where applicable.

Register for the January 2023 Certified Plan Sponsor Professional (CPSP™) Credential Virtual Classroom

Expand your retirement plan knowledge and confidence as a plan sponsor by earning your CPSP credential. If you have not yet registered for a previous class, now’s your chance. This nine-week, instructor-led program begins January 25, 2023, and features weekly live webinars and exclusive portal access to plan administration resources. The course is approved for 16 hours of continuing education (CE) credits through HRCI^® and SHRM^®. One newly credentialed plan sponsor commented, "It was a great course! I feel much better prepared to assist in the administration of our company's 401k plan." Register by January 18 or learn more here.

New One-Step eDelivery Election for Participants

We’re making it easier for your participants to go paperless. Participants with employee site multi-factor authentication (MFA) and web-registered email addresses on file who have not already elected electronic delivery (eDelivery) can soon go paperless with one click.

Beginning in 2023 and continuing quarterly, participants will receive an email and acknowledge a positive eDelivery election, and we’ll update their preference to go paperless in one simple step. They can receive statements, transaction confirmations (as applicable), and other plan-related documents faster and more securely—taking the work and worry off of you. You can rest assured participants are getting the information they need when they need it, and they can change their eDelivery elections at any time on the employee website.

Is Now the Time for Managed Accounts?

After more than a decade of steady growth, the economic shifts and challenges of the past two years and the uncertainty of the future are reminders that investing over the span of a participant’s career can be more complex than “set it and forget it” retirement planning. Find out why managed accounts could be a good choice for long-term retirement saving.