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Benefits of Retirement Plan for Employer and Employee

A retirement plan can offer various benefits for you, your business and your employees. Investing in a retirement plan can provide financial security when you and your employees get to retire from the job. Also, the retirement plan can help you and your employees to gain tax advantages and other incentives. Business Benefits Tax-deduction available for employer contributions Various flexible retirement plans are available for the employer to choose from Tax credits and other incentives …

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Thinking of Maximizing 401(k) Contributions for Key Employees? Read On to Find Some Expert Tips

Is your business thriving and humming along, and you want to maximize your 401(k) savings for your top performers? Are you wondering how to allocate contributions to retirement accounts? Here we have discussed several options that help you contribute more to your employee’s retirement account. 401(k) Contribution Limits A contribution limit is set by the IRS in which it allows an employee or an employer to place into a qualified account. The maximum amount an …

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Benefits of Small Business Retirement Plans

Providing a retirement plan is one of the best ways to attract and retain employees for a small business. Without a retirement plan, the owner and the employee are leaving a big part of their financial future into a question mark. Other than providing an important source for retirement savings, offering retirement plans for small business can provide various benefits. Tax Deduction for Owners The costs of executing retirement plans for the small business are …

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Top Reasons Why You Should Consider a Cash Balance Plan

Did you know a recent research report indicates that the number of new Cash Balance plans increased 17% outpacing the 3% growth of 401(k) plans? Moreover, 92% of the cash balance plans are sponsored by companies with less than 100 participants. What is a Cash Balance Plan? A cash balance plan is a defined benefit plan in which an employer credits a pay credit and an interest credit to the participant account. It also allows …

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How to Optimize the Retirement Plan for Your Small Business

When it comes to operating a small business, no two days are the same! As a small business owner, do you have the time and the staff to keep up with the evolving 401(k) market? Regulatory changes and the new entrants are presenting new risks for sponsors of retirement plans at small and mid-sized businesses. Today, the market is open with opportunities to reduce plan costs and pare the administrative burden long associated with offering …

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Popular Misconceptions about 401(K)

401K plan is established in 1978 and has gradually developed to be the primary retirement plan of millions of Americans. And it is expected to continually dominate the retirement industry for a very long time. 401K retirement plans for small businesses can greatly help to attract, keep and inspirit today’s human resources. However there are lots of myths surrounding it and they are given below, It is way too expensive It might have been true …

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The Ultimate Guide 101: Retirement Plans for Small Business

Why should you set up a retirement plan? The answer is: A retirement plan has lots of benefits for you, your company and your employees too. Retirement plans are specifically crafted which allows investing now itself in financial security when you and your employees retire. As an added bonus – by enrolling retirement plans, you and your employees get significant tax exemption advantages, Medicare, and incentives. By choosing retirement plans, you can enjoy the benefits …

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Popular Misconceptions about 401(K)

401K plan is established in 1978 and has gradually developed to be the primary retirement plan of millions of Americans. And it is expected to continually dominate the retirement industry for a very long time. 401K retirement plans for small businesses can greatly help to attract, keep and inspirit today’s human resources. However there are lots of myths surrounding it and they are given below, It is way too expensive It might have been true …

Read More
Focusing on Overall Financial Wellness: Tips for Plan Sponsors

Several recent surveys have indicated a widespread lack of financial literacy among American workers. Add to this the fact that many employers struggle to engage workers in plan participation, and it becomes clear that workplace financial education could play a vital role in strengthening employer-sponsored retirement programs. Financial Wellness by the Numbers According to a 2015 LIMRA study, 95 percent of workers believe financial literacy is important. However, only 35 percent of respondents consider themselves …

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Things to Consider When Evaluating a Cash Balance Plan

Cash balance plans can be a great option for plan providers with established employees who are nearing retirement. These plans are especially good for high-income executives. Providing greater flexibility to retirement planning, they allow for additional retirement savings through a cash balance pension that can be added on top of an existing 401(k)—for a plan sometimes called a “401(k) combo plan.” Unfortunately, an incident at IBM in 1999 gave these plans some bad press early …

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Retirement Plan Rollovers: What You Need to Know

What happens when you switch to a new retirement plan? You may wish to roll money from a former plan over into the new one, but how does that work? Although rollovers may seem complicated, they are fairly straightforward, and the IRS has easy resources to guide you through the process. This easy-reference guide provides a snapshot of eligible rollover funds:  https://www.irs.gov/pub/irs-tege/rollover_chart.pdf Once you’ve determined if your investments are eligible for rollover, you’ll be ready …

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The Importance of Engagement

Employee engagement is a critical aspect of the success of any retirement program. Unfortunately, employees in our country continue to under-prepare for retirement. For younger employees, retirement may seem so far off that putting money aside doesn’t register as an important concept. For employees still living paycheck to paycheck, saving for retirement may not seem like a possibility. As employees grow closer to retirement, they often become more interested in building a healthy retirement portfolio, …

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What Fed Rates Mean for Your Retirement Plan

There’s been a lot of hubbub lately over Federal Reserve rates. On December 16, 2015, Fed rates raised to 0.25 percent. This is the first rate hike since rates were lowered to zero percent in 2008, and it indicates cautious optimism from an institution that in August of 2007 held rates at 5.25 percent. Economists in favor of the recent rate hike and those against it have been debating openly since before the hike actually …

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The Impact of Global News on Your Retirement Plan

Often, when breaking news happens overseas, in countries far removed from our own, it can be difficult to recognize how this news impacts our lives. For retirement plan administrators as well as participants in those plans, however, global news can have real consequences. Some of these consequences may be noticed early while others may not be felt for months or even years. Nevertheless, a crisis in Europe, Australia, Asia or the Middle East is likely …

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Performing a Retirement Benefits Checkup

The IRS recommends that all businesses perform a retirement benefits checkup annually. If you haven’t done this recently, the beginning of a new year provides the perfect opportunity. Reasons to perform such a review include the need to update a plan to comply with new legislation as well as the need to add eligible employees to the plan. Additionally, common mistakes made in plan management can be fixed during a regularly scheduled review, and the …

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