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, RPCs, 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

Safe harbor 401(k) plans are among the most popular types of 401(k) plans used by small businesses. These plans help owners maximize the annual contributions made to their accounts because they automatically pass ADP/ACP and other top-heavy nondiscrimination tests. However, to achieve the Safe Harbor status, the plan must meet certain contributions and participant disclosure requirements. Let's talk a little more about the rules that Safe Harbor plans bring with them. If, as

Currently, the law allows employers to design their retirement plans to exclude part-time employees who work less than 1,000 hours per year from plan participation. Under the SECURE Act, Congress elected to reduce eligibility standards to expand retirement plan coverage. Beginning in 2021, 401(k) plans are required to provide dual eligibility coverage—meaning that employees who have worked at least 500 hours per year for at least three consecutive plan years are eligible for

When a business owner decides to start up a 401(k) or some other type of retirement plan, the inevitable question is "who will take care of the planning and administration?" That's a fair question, but Plan Sponsors will be glad to learn that there are firms dedicated to plan administration. Let's take a few moments to explore everything you ever needed to know about Retirement Plan Consultant (RPC). What is a RPC and what do they do? A Retirement Plan Consultant is a comp