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Maryland board chooses employer plan over state program

LPL Financial's Greg Bailey described the board's choice, PLANADVISER — Advice reported.

At a glance

  1. The board's discussion moved from how to comply with the state requirement to whether a plan could help recruit and retain staff, according to Greg Bailey, associate general counsel at LPL Financial.
  2. Early research from the Center for Retirement Research at Boston College suggests employers subject to state auto-IRA mandates are more likely to adopt employer-sponsored plans than similar firms in states without them.
  3. The column argues advisors don't need to be a recordkeeper, attorney or plan administrator to start the conversation once a notice arrives.

A Maryland assisted living facility board chose an employer-sponsored retirement plan over a state-facilitated program after a state mandate notice, PLANADVISER — Advice reported, citing an LPL Financial executive.

The board's discussion moved from how to comply with the state requirement to whether a plan could help recruit and retain staff, according to Greg Bailey, associate general counsel at LPL Financial.

Early research from the Center for Retirement Research at Boston College suggests employers subject to state auto-IRA mandates are more likely to adopt employer-sponsored plans than similar firms in states without them.

The column argues advisors don't need to be a recordkeeper, attorney or plan administrator to start the conversation once a notice arrives. Expanded SECURE and SECURE 2.0 incentives and the coming Saver's Match are making sponsorship more attractive, the column said, and likely widen the opening for owner-only plan and held-away rollover conversations.

Reported by the Practice management desk from PLANADVISER — Advice. Published . Corrections

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