By offering a 401(k) plan to your employees, you provide a useful perk for working at your company and helping them save for retirement. For many, it may also influence them in accepting a job offer. Along with a retirement savings plan, employers may also offer employer matching contributions on employee deferrals. What exactly does that mean and what are the pros and cons of doing so? Let's talk about it. What is a 401(k) Employer Matching Contribution? Employers who offer

As you begin to approach retirement, saving for the future has always been a priority. These funds cannot stay in your account indefinitely, which means you will need to start taking withdrawals. These withdrawals are referred to as required minimum distributions. In this blog, we will dive into what a required minimum distribution is, how to calculate your withdrawal as well as what retirement plan accounts that it applies to. What is a Required Minimum Distribution? Simply

If you sponsor a retirement plan for your employees, you will soon discover that the bulk of the government compliance work done by your Third Party Administrator (TPA) occurs in the first quarter of each year. Your duties as a Plan Sponsor will also become more demanding during that time as you gather the required data and have more frequent communications with your TPA. We often get questions on why the TPA is requesting so much data and what work is being done. In this pos

Employer-sponsored retirement plans such as a 401(k) provide companies and employees with numerous benefits. When establishing a 401(k), you will designate an individual or committee within your company that is responsible for the establishment of the plan document, communication, compliance, and more. In this blog, we are going to uncover the 12 things that every 401(k) Plan Sponsor needs to know including tips and responsibilities. What are a Plan Sponsor's Responsibilities

In the sea of sameness, 401(k) Recordkeepers, TPAs, and Advisors are all looking for a marketing edge. There is always something new to talk about, 3(21), 3(38), MEPs, PPA, Secure Act, Cares Act, Restatements, PEPs, the list goes on and on. One of the newer items that is becoming a topic of discussion is a 3(16) fiduciary. The marketing spin is that if you hire a 3(16) fiduciary as the administrator of your retirement plan then you have transferred the responsibility for the

Below is an outline of the newly released 2021 contribution limits, which will take effect on January 1, 2021. There are not many increases in 2021. The key increases are: Annual compensation limit is increased from $285,000 to $290,000 Annual additions limit for defined contribution plans is increased from $57,000 to $58,000 Social Security Wage Base is increased from $137,700 to $142,800 SEP Threshold is increased from $600 to $650 ESOP: Account Balance is increased from