In its simplest form, catch-up contributions are exactly what it sounds like: An opportunity for people 50 and older to “catch up” and save more money in their retirement accounts than what the usual annual contribution limits from the IRS allow. This is perfect for those that got a late start with their retirement savings or had to delay saving entirely because life happens. But when examined more closely, catch-up contributions are crucial to help improve the overall state of retirement in the U.S. According to the U.S. Census Bureau, about 47% of men and 50% of women ages 55 to 66 have no p ..read more

The retirement planning landscape has undergone transformative changes with the introduction of the SECURE Act in 2019 and the SECURE Act 2.0 in 2022. These legislative milestones have reshaped retirement plan eligibility, especially for long-term part-time employees. For plan sponsors, understanding and adapting to these changes is essential for tailoring your company’s retirement solutions. This post aims to provide an insightful guide for plan sponsors navigating these new regulations, ensuring smooth transition and compliance. Defining Long-Term Part-Time Employees: Central to these change ..read more

In the dynamic and often unpredictable realm of freelancing and gig economy work, financial stability might seem like an elusive dream. However, it’s crucial for gig workers to acknowledge that they are essentially small business owners. Therefore, planning for financial security, especially in retirement, becomes a matter of great importance. If you’re a gig worker wondering how to secure your financial future, you’ve come to the right place. Let’s delve into the comprehensive benefits of a small business 401(k) plan and how to go about setting one up. Answer a few simple questions to find th ..read more

Sometimes life sends us devastating curveballs with deep financial consequences. If you’ve fallen into dire circumstances, and have already dipped into your savings, there may be hope in your 401(k) plan. While ordinarily, you cannot withdraw money from your retirement account until your employment ends (or turn 55), many plans allow something called a hardship withdrawal. What counts as a hardship? While lots of overwhelming financial situations can arise in life, only specific circumstances can be classified as a hardship. According to the IRS, a hardship must be an “immediate and heavy fina ..read more

A Comprehensive Guide for Small Business Owners Offering a small business 401(k) retirement plan is a vital part of attracting top-notch employees and enhancing the financial security of your workforce. But this benefit comes with its own set of regulatory obligations. This article aims to demystify the essentials of 401(k) plan compliance, providing a clear roadmap to avoid legal pitfalls and create a solid retirement savings vehicle for your employees. Understanding 401(k) Plan Compliance in Depth 401(k) plan compliance is about more than just ticking off boxes; it’s about abiding by the law ..read more

Overwhelmed by the thought of setting up a 401(k) plan for your small business? You’re not alone. In this guide, we’ll break down the essential questions you need to ask your retirement plan provider to make the process easier—and ensure a secure financial future for both you and your employees. 1. What Type of 401(k) Plan is Best for My Business? Before you get lost in the details, understand there are several types of 401(k) plan available. These include traditional 401(k)s, Safe Harbor 401(k)s, and sole proprietor 401(k)s. Example: A small tech startup may find that a Safe Harbor 401(k) is ..read more

For small business owners, offering a robust 401(k) plan is a strategic move that benefits both you and your employees. And one feature in particular that can substantially enhance your retirement plan is automatic escalation. In this article, we will explore how implementing this feature can provide advantages to both your business and your employees. What is Automatic Escalation? Automatic escalation is a feature within a 401(k) plan that incrementally increases an employee’s contribution rate. Most of the time this increase happens annually, but employers can set it to occur at different pr ..read more

Small business owners need to recognize the growing importance of financial benefits, particularly 401(k) plans, in attracting and retaining top-tier talent. As employee priorities shift toward comprehensive and adaptable retirement options, it’s crucial to future-proof your 401(k) offerings. Read on for actionable steps to ensure your 401(k) plan remains a compelling and essential part of your employee benefits package, aligned with emerging trends in employee retention. Use Surveys and Feedback for Insights Get insights directly from your team by running anonymous surveys. These can reveal w ..read more

In the intricate landscape of small business retirement planning, offering a comprehensive and beneficial suite of options to your employees can have a profound influence on their long-term financial well-being. One critical factor that often remains underutilized is the provision of a Roth 401(k) option within your small business retirement plan. Let’s delve into the nuts and bolts of why a Roth 401(k) can be an invaluable addition to your employee benefits package. What Exactly Is a Roth Option in a Small Business 401(k)? The Roth option is a feature that can be seamlessly integrated into a ..read more

As a small business owner, you already recognize the value of providing a strong 401(k) plan as a benefit to your team. But convincing employees to contribute to their 401(k) isn’t always straightforward. Here’s a more detailed guide on how to excite your team about their retirement options, so you create a culture where planning for the future is encouraged and valued. To encourage your employees to participate in your 401(k) plan, here are three key selling points you can share with them: Long-Term Financial Growth: The first major benefit you can discuss is the power of compounding. Explai ..read more