LT Trust Blog
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LT Trust is a national provider of trust and custodial services, including open architecture 401(k) plans, which provide access to hundreds of fund families without imposing product requirements. Follow the LT Trust Blog to read articles on gender retirement gaps, Secure Act 2.0, Retirement Income Projections, and more.
LT Trust Blog
1y ago
Offering a small business 401(k) benefits package is a normality today. It not only shows attention to your employees’ future, but also attracts top talent for future projected growth and stability. When I’m speaking with an interested business owner, the first question that usually comes up is: Will I need to offer an employer contribution? The answer is “no” ...but it’s worth considering.
Continue reading to learn more about Safe Harb ..read more
LT Trust Blog
1y ago
The general rule of thumb to successfully reach retirement is to save early and save often.
Those two simple steps allow compound interest to work its powers and easily set you up for retirement. Unfortunately, it’s a lot easier said than done. Especially for Millennials, who have more debt than any other generation, according to the New York Federal Reserve. Millennials — anyone born between 1981 and 1996 — are experiencing student loan debt, car loan debt and worst of all, credit card debt. Simple math suggests it’s probably better to pay off debt before saving for retirement, but one could ..read more
LT Trust Blog
1y ago
Since the beginning of the COVID-19 outbreak, we’ve been inundated with news about the progression of the virus and the recession of the economy. Many Americans are aptly concerned about their retirement savings, feeling like much of the progress they made over the last decade is slipping away.
The recent market sell-off may seem alarming but we can find comfort in the history of the markets. It shows us that all things are cyclical and we’ll likely see a return to good times before too long. Instead of making emotional investment decisions, now is a great time for retirement savers to revisit ..read more
LT Trust Blog
1y ago
Determining 401(k) participation rate has historically been less a science and more of an estimate. The biggest reason for a lack of visibility is because 401(k) plans are reported to the government on a plan level and studies have to rely on surveys such as this one conducted by Plan Sponsor Council of America (PSCA) to gather data. The result is that there are different participation rates cited such as:
Vanguard in 2018: 74%
PSCA in 2017: 84%
88.7% had a balance
84% made a contribution
Fidelity in 2018: 73.5%
Autoenrollment plans: 88.3%
No ..read more
LT Trust Blog
1y ago
It has been well documented that COVID-19 has wreaked havoc on both the US and global economies. From sky-high unemployment rates to the shuttering of businesses and wild swings in the stock market, the virus has impacted every economic sector. This burden has disproportionately fallen on women causing an already unbalanced gender pay gap to worsen. With so much attention paid to this, less attention has been paid to the long-term impact of this wage disparity on men vs. women retirement savings.
Rather than surveying workers directly to learn how COVID-19 has impacted their retirement savings ..read more
LT Trust Blog
1y ago
Whatever it is, the way you tell your story online can make aIn May, the House Ways and Means Committee unanimously approved the Securing a Strong Retirement Act of 2021 (SECURE Act 2.0). This proposed legislation is building on top of the original SECURE Act that went into effect in December 2019 with ideas that the Biden Administration has floated in the past. Unlike the typical gridlock that encompasses Washington D.C., the original SECURE Act enjoyed large bi-partisan support on all sides of the political spectrum. By all indications, the SECURE Act 2.0 is also going to enjoy broad ..read more
LT Trust Blog
1y ago
Another 6.6 million people filed for unemployment benefits last week, according to the US Department of Labor. While many American families are struggling to pay their bills, some may decide to either borrow or withdraw from their 401(k).
The CARES Act was passed by Congress to provide economic relief in response to the COVID-19 pandemic. The new legislation created changes to both 401(k) loans and withdrawals. To be eligible for the new loan and withdrawal provision, the individual participant, or his or her spouse or dependent, must have been diagnosed with COVID-19, or the indiv ..read more
LT Trust Blog
1y ago
On September 18, 2021, the Department of Labor’s (DOL) interim final rule on lifetime income disclosures for defined contribution plans will take effect. All 401(k) providers will be required to show participants the equivalent of their retirement savings as monthly retirement income under two potential annuity scenarios.
1. A Single Life Annuity (SLA)
2. Qualified Joint and 100% Survivor Annuity (QJSA)
Contact A Specialist
You may notice that both retirement income scenarios are annuity focused. Let’s first discuss the logistics of this new requirement and then I’ll touch on the diffe ..read more
LT Trust Blog
1y ago
As an employer, there are a number of 401(k) plan benefits that go unnoticed. Whether it is the tax savings or being able to attract and retain top talent, it remains an essential benefit to run a successful business. The good news is, it has never been more efficient, affordable, and easier to understand. If you have questions about your 401(k) eligibility, we recommend you can check out our 401(k)-plan eligibility guide.
Contact A Specialist Employer Benefits of 401(k) Plans Benefit 1 - Attract and Retain Talent
Employers are at a disadvantage by not offering a 401(k) plan. Even if y ..read more
LT Trust Blog
1y ago
It has been well documented that COVID-19 has wreaked havoc on both the US and global economies during the course of the last 12 months. From sky-high unemployment rates to the shuttering of businesses and wild swings in the stock market, the virus has impacted each and every sector of the economy.
With so much attention being paid to the daily toll the ongoing pandemic has had on businesses, workers, and their finances, less attention has been paid to the long-term effects of COVID-19 on American’s nest eggs and retirement goals.
Rather than surveying workers directly to learn their opinions ..read more