A 401(k) Retirement plan is one of the most desirable and valuable benefits you can provide your employees. Having an employee retirement plan shows you care about their future and helps employees create a nest egg for a comfortable retirement. It’s also an expected benefit. According to the Society for Human Resource Management (SHRM), 94...
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401ks Leave Most Americans Unprepared for Retirement
The rise of 401(k) plans has left most Americans unprepared for retirement. The average family only has $5,000 saved in a retirement account, according to a new report by the Economic Policy Institute. The report, “The State of American Retirement,” found 401(k) plans have magnified economic inequities. While the median family between the ages of...
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Average Age of Retirement Now 62—Up From 59
At a time when people in the United States are working longer hours and taking second jobs to pay the bills and save for retirement, a new Gallup poll found the average age that Americans are retiring was 62 in 2014, up from age 59 in 2010. As a result, our economy is less productive...
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Qualified vs. Non-Qualified Retirement Plans
When considering retirement plans, the many options — not to mention complicated tax rules — leave many employers uncertain about the best plan for their company. One of the basic decisions employers face is whether to offer qualified or non-qualified retirement plans, or some combination of both. Here’s a closer look at the pros and...
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Qualified vs. Non-Qualified Retirement Plans
When considering retirement plans, the many options — not to mention complicated tax rules — leave many employers uncertain about the best plan for their company. One of the basic decisions employers face is whether to offer qualified or non-qualified retirement plans, or some combination of both. Here’s a closer look at the pros and...
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It’s Time for a 401(k) Tune-Up
Give your 401(k) plan a little routine care and maintenance to avoid compliance problems! A compliance review will help you catch any plan errors or overlooked updates that might affect the retirement income of one or more of your company’s employees or subject your company to regulatory penalties. Here’s a quick run-down of how to...
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Avoid Nondiscrimination Nightmares by Increasing Retirement Plan Participation
You might have the best retirement plan available, but if employees aren’t participating, what’s it worth? The following plan changes could make your plan more attractive to all employees. Nondiscrimination rules prohibit top-heavy plans, or plans that involve too many high-income earners and not enough low income earners. It’s usually easier for high-income employees to...
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How a Little 401k Fee Can Make a Big Difference
No longer can employers select a retirement plan and put it on autopilot. Lately, employee groups have been suing their employers…and winning…over high 401(k) fees. The Supreme Court heard arguments in a relevant case, Tibble v. Edison International, earlier this year. Plaintiffs claim that administrators of Edison’s retirement plan breached their fiduciary duties by offering...
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What Are Your Fiduciary Responsibilities?
Every written employee retirement plan must name at least one fiduciary. As a fiduciary, what are your fiduciary responsibilities? They include, but are not limited to: Controlling plan operations: A fiduciary differs from a typical manager in that the fiduciary must act solely in the best interest of plan participants and their beneficiaries. Communicating: Fiduciaries...
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What You Need to Know about ERISA
On Sept. 2, 1974, President Gerald Ford signed ERISA, the Employee Retirement Income Security Act. Since then, benefits managers have dreaded running afoul of this huge law. Does ERISA apply to your benefit programs? If so, what do you need to know? ERISA established standards for private sector pension and health benefit plans to increase...
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