Thanks to a new video from the U.S. Department of Labor, small and midsize businesses can better understand their retirement plan options.
"Choosing a Retirement Solution for Your Small Business" is a new video from the U.S. Department of Labor that introduces employers to the three most popular retirement arrangements and helps plan providers understand various options in providing retirement programs to employees.
The Department of Labor's new 403(b) regulations altered the requirements for plan documents, employee transfers, non-discrimination compliance and plan terminations. While the plan document requirements have garnered the most attention, a closer look at the regulations shows that the greatest change for small and midsize non-profit organizations is that most, if not all, 403(b) plans will now fall under the Employee Retirement Income Security Act (ERISA).
If employers wish to see robust participation rates in their 401(k) plans, they need to have brief and informative educational sessions, easy-to-enroll options and features that allow them to defer decisions to experienced brokers.
Automatic 401(k) plans continue to grow in the workplace, leading some small and midsize employers to consider adding automatic features -but not for the reasons some might think.
We have all heard the horror stories about soon-to-be retirees who lost money in aggressive investments a year before retirement or employees forced to work after retirement age because they failed to start saving early enough. Could their employers have done something to help them avoid these tough circumstances?
Automatic 401(k) plans continue to grow in the workplace, leading some small and midsize employers to consider adding automatic features - but not for the reasons some might think.
A growing number of baby boomers are becoming unsettled as they discover they might not have the long-term resources to cover their lifespan after they've retired. Boomers are living longer, meaning they have to make their retirement dollars stretch further than before, at a time when health care costs continue to skyrocket.
To avoid bank-breaking administrative costs and help employees save for retirement, some small employers are turning to SEP-IRAs, a crossbreed of a 401(k) and a profit-sharing plan.
The IRS publishes a free, quarterly, electronic-only newsletter, Retirement News for Employers (RNE). It includes Timing is Everything (TIE), a one-page information sheet aimed at retirement plan participants. If you are not a RNE subscriber, you can view previously published newsletters and sign up for it here.
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