A Safe harbor 401(k) plan allows a plan sponsor to automatically pass certain annual tests to ensure compliance with IRS regulations if specific contribution, vesting, and participant notification requirements are met. Safe harbor plans generally don’t require the following compliance tests: Actual deferral percentage (ADP). A test for pre-tax elective and/or Roth deferrals by highly compensated employees (HCEs) to a … Read More
What Makes a Great Retirement Plan for Employers
Before you can start building the framework as to what would make a great retirement plan for your business, the executive or ownership groups need to consider why they want a great retirement plan for their employees. Four out of five employers report that their employees’ personal financial issues are impacting their job performance somewhat, very much or to an … Read More
How to Measure ROI on Employer Retirement and Financial Wellness Programs
Many employers often ask, “how can you help us to quantify the impact of an employer-sponsored retirement plan or financial wellness program?” While there is never a hard and fast calculation, there are several aspects that a business could look at to come up with a return on their investment. The framework below identifies key areas where a business could … Read More
CARES Act Summary for Your 401(k) Plan Participants
There has been a plethora of US legislation passed at a relatively fast pace over the past weeks. From changes and extended unemployment benefits, to support for small businesses such as the Payroll Protection Program, it has likely been challenging to get your arms wrapped around it all. The CARES Act was designed to help most Americans who have suffered … Read More
7 Investment Selection & Monitoring Best Practices for Your 401(k) Plan
ERISA’s standard of prudence for Fiduciaries is not that of a prudent layperson but rather that of a prudent investment professional. A plan Fiduciary must act “…with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use…” A lack of familiarity with investments … Read More
How to Establish a 401(k) Plan Investment Committee
No matter the size of your company, having an investment committee overseeing your employer-sponsored retirement plan is a critical Fiduciary responsibility. Your committee could consist of any amount of people, including as few as two. However, the key membership criteria are that you’re your committee should all be qualified members. It is better to have a smaller, well-identified committee with … Read More
How to Understand Your Role as a 401(k) Plan Fiduciary
The Fiduciary Role One of the key tenants of an employer-sponsored retirement plan, such as a 401(k) is your role and responsibility as a Fiduciary. A Fiduciary as defined in ERISA is somehow who: Exercises discretion over the management of the plan or any authority over plan assets; Renders investment advice for a fee or other compensation, directly or indirectly; … Read More
What is Financial Wellness and Why it Matters to Your Business
Your employees are juggling multiple challenges. No matter what stage of life they’re in, financial stressors often top the list. Student loans and other debts bog down millennials who are just getting started. Members of Generation X may be in the prime of their careers but are pinched caring for children and aging parents. Baby boomers are preparing for retirement. … Read More
Five Ways to Support Your 401(k) Plan
As a 401(k) advisor, I help to reduce your 401(k) workload, but I also help to reduce your liability by taking on a fiduciary role. Bottom line, my biggest responsibility is to identify and mitigate your personal liability risk while helping to empower your employees to build assets for their retirement. Learn about the five areas where we can elevate and support your 401(k).
How to go Beyond Traditional 401(k) Education & Advice
While some plans worry about the legal consequences of offering advice programs, the Pension Protection Act (PPA) and related DOL guidance continue to support education and advice programs. We believe that an effective plan design will provide good alternatives for participants, and effective education and advice programs will enhance the likelihood that participants will make sound designs. The result will … Read More
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