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Benefits of Retirement Plans for Small Business
If you are a business owner and willing to take care of your employees through various options such as salary, paid vacation time, medical care, etc., you can also consider providing them with the retirement plans that can help them in their retirement years. Retirement plans like 401(k) administration is an excellent tool to attract and keep your valuable and talented employees for many years. It can also help them attain a more financially sound …
Read MoreOptimizing Retirement Plan for Your Small Business
Did you know a striking 75% of survey respondents age 18 to 64 have saved less than $100,000 for retirement? When you are running your small business, no two days are the same. But do you have the time and the staff to keep up with the evolving 401(k) market as well? Retirement plan accounting is pretty common for small business owners today! And according to the research, a fraction of America’s entrepreneurs are prepared …
Read MoreBenefits 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 …
Read MoreThinking 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 …
Read MoreBenefits 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 …
Read MoreTop 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 …
Read MoreHow 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 …
Read MorePopular 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 MoreThe 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 …
Read MorePopular 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 MoreFocusing 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 …
Read MoreThings 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 …
Read MoreRetirement 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 …
Read MoreThe 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, …
Read MoreWhat 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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