An unusual time for money market and stable value funds

The Federal Reserve has been raising interest rates at the fastest pace in history to combat the highest inflation seen in decades. Since the beginning of 2022, the federal reserve increased the Federal Funds from near zero to between 5–5.25% (as of May 2023). Learn more about how the impact of inflation and rising rates has triggered volatility in the markets.

Third party contact

Vanguard has not authorized third parties other than those previously identified to you to contact you to discuss specific details about your plan, including fees. If a firm contacts you claiming to work for Vanguard, and you are unsure whether the claim is legitimate, please contact your Vanguard Client Service team or financial advisor.

SECURE 2.0 increased RMD age, allowing more time to save

Specific legislation in the SECURE 2.0 Act has increased the RMD age to age 73 in 2023 (age 72 if born from July 1, 1949 to December 31, 1950, and age 70½ if born before July 1, 1949). This offers savers the opportunity to delay taking distributions from their retirement plans, while allotting additional time to grow their nest eggs. Read more about this change.
 
To help answer questions you may have, RMD reference materials can be found on your plan website (Resources > News & Communications > RMD Reference Materials).

When it comes to managing plan expenses, you’ve got options

Depending on plan provisions, you can cut costs and mitigate fiduciary risk through expense management. For example:

• Paying plan expenses with forfeitures. Preserve corporate assets without shifting fee payments to your employees. Plan permitting, you can use forfeiture funds to pay certain administrative costs, make required contributions, or allocate to participant accounts.
• Acting on former employee accounts. Are you maintaining accounts for former employees or beneficiaries who have not cashed out? You may be able to reduce expenses by rolling over small balances into IRAs or making cash payouts where possible.

To discuss available options and review plan provisions, contact your client service team. 

Contribution processing made simpler

If you’ve logged into your plan website recently, you’ve likely noticed a more intuitive look and feel to the payroll contributions process. This is just one of many enhancements to come as we invest in technology to continuously improve the contribution experience.