Each episode offers employers candid, in-depth interviews with industry experts, new best practices and valuable perspectives on current events.
401(k) Plan Loans: Necessary, Evil or ....?
Guest: Todd Cowman
Over the years, participant 401(k) plan loans have gotten a bad rap both with plan sponsors and within the industry. In this episode my guest, Todd Cowman, a Senior Consultant at the Principal Financial Group explores whether that bad reputation is deserved. Todd does a great job of explaining some of the fundamentals of 401(k) plan loans, which are often times misunderstood, and brings a frank overview of the pros and cons of 401(k) plan loans for participants and plan sponsors. Finally, he leaves plan sponsors with some thoughts on plan design and loan policy features to help limit the potential abuses of 401(k) loans.
Todd Cowman is a Senior Consultant for the Principal Financial Group. Todd has been with the Principal Financial Group since 1993. He works primarily with Defined Contribution and Defined Benefit clients, both qualified and nonqualified, with up to $1B in retirement plan assets, designing an overall retirement program that is both cost effective to employers and meaningful to employees, while continuing to meet strict regulatory requirements.
Todd has focused much of his efforts around mergers and acquisitions, helping plan sponsors understand the unique plan design challenges that arise and navigating available options. He has assisted in developing multiple written documents related to this topic which are frequently used by plan sponsors and other financial professionals. Todd also assists plan sponsors in resolving plan operational/qualification failures and negotiating corrections with the Internal Revenue Service.
Todd is often asked to speak on various plan design topics at client specific and industry conferences as well as supporting our sales efforts in the field by participating in SWAT visits both in and outside our Corporate Center in Des Moines, IA. Todd earned his Qualified 401(k) Administrator (QKA) designation from ASPPA in 2008.