RPA 1

Directing Retirement Plans Part 1

(Updated July 2024)

 This course describes the various alternatives for plan sponsors as they strategically design retirement plans to meet the ever-evolving needs of a dynamic workforce and an ever-changing, competitive marketplace for talent. Students learn essential knowledge for understanding retirement plan design. The course outlines requirements for achieving tax-qualified status, distinguishes differences between defined contribution (DC) and defined benefit (DB) structures, and provides a framework for understanding DC plan types whose use depends on the sponsor’s legal entity and the employee group’s characteristics. This course also provides a comprehensive understanding of 401(k) plans, 403(b) plans, 457 plans and other specialized niche plans. It views the appropriateness of these plans and the latitude sponsors possess in defining eligibility and establishing plan provisions. Also addressed are the unique situations involving executive talent, nonprofit employees and governmental workers. The course also examines the challenges of small employers in sponsoring a retirement plan. As such, it reviews simplified employee pensions (SEPs), SIMPLE plans, safe-harbor 401(k)s and solo 401(k)s. Key plan issues such as fee transparency; environmental, social and governance (ESG) investments; and inclusion of cryptocurrency investments are also addressed. The course incorporates both currently applicable law and future, to-be-phased-in requirements from the SECURE 2.0 Act. 

Topics Covered:

• Private Retirement Plans: Background and Context 
• Defined Contribution and Defined Benefit Structures
• Defined Benefit Approaches and Executive Plan Arrangements
• Overview of Defined Contribution Plan Structures and Stock Compensation Plans
• Profit-Sharing Pension and Money Purchase Plans
• Foundations of 401(k) Plans
• Defined Contribution Practice Issues
• Special Purpose Plans: 403(b)s, 457s and ESOPs
• Small Employer Retirement Plan Alternatives
• Individual Retirement Accounts (IRAs)

• Placeholder Certificate A