Accelerated Retirement Is Possible If You Follow The Right Roadmap

December 7th, 2018

FMI - Retirement Planning

Everybody imagines retiring early, but few people manage to do it. A recent Willis Towers Watson survey reported that far more working Americans are planning to retire after age 65 (46%) than before it (30%).1 Here are five steps you can take to jumpstart the process.

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2017: A Good Year For Participants

December 4th, 2018

FMI 2017: A Good Year for Participants

Auto Features Contributing to Participation, Average Balance Increases

It was a good year for individual account plans, including 401(k)s and 457s. In fact, 2017 may go in the record books as the first year the number of plans with an average auto-enrollment deferral rate of 6% exceeded the number of plans with a default deferral rate of 3%, as it has commonly been.

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December Checklist

November 30th, 2018

FMI December financial checklist

  • Prepare to send year-end payroll and updated census data to the plan’s recordkeeper in January for year-end compliance testing (calendar-year plans).
  • Verify that participants who terminated during the second half of the year selected a distribution option for their account balance and returned the necessary
  • Review plan operations to determine if any ERISA or tax- qualification violations occurred during the year and if using an IRS or DOL self-correction program would be

Consult your plan’s financial, legal or tax advisor regarding these and other items that may apply to your plan.

Planning Finances As A Single Parent

November 27th, 2018
FMI planning finances as a single parent

 

[Written by Carla Seely]

Organizing and planning for your family’s financial well-being can be challenging at the best of times. However, there are many challenges involved in managing and maintaining a household as a single parent. Being a single parent means you have less money to spare, and there is a pressing need to have a solid long-term financial plan because in most cases there are no alternative sources of income. Read the rest of this entry »

Open Enrollment Season

November 13th, 2018

FMI Open Enrollment November

This is a quarterly reminder to take advantage of Open Enrollment at your company, which usually happens in November. This is a good time to make sure you are maximizing your retirement account contributions, adjusting tax withholdings for the upcoming years, and checking your overall benefits such as life insurance, health savings accounts (HSAs) or flexible spending accounts (FSAs).

Bond Funds May Help Diversify Your Portfolio

November 8th, 2018

Most investment experts talk about the benefits of diversification — essentially, mixing some stocks, bonds and cash in your portfolio. Having too many eggs in one basket, so the reasoning goes, means that you could wind up with broken eggs if the basket falls.

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Helping Employees Stay on the Right Side of Their Duties as Fiduciaries

November 6th, 2018

FMI Helping Employees Stay on the Right Side of Their Duties as fiduciaries

Fiduciary training can help protect individual fiduciaries, the plan as a whole — and, of course, the participants.

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November Checklist

October 26th, 2018

  • Prepare to issue a payroll stuffer or other announcement to employees to publicize the plan’s advantages and benefits, and any plan changes becoming effective in January.
  • Conduct a campaign to encourage participants to review and, if necessary, update their mailing addresses to ensure their receipt of Form 1099-R to be mailed in January for reportable plan transactions in 2018.
  • Check current editions of enrollment materials, fund prospectuses and other plan information that is available to employees to ensure that they are up to date.

Should you contribute to your company’s Roth 401(k)?

October 23rd, 2018

The basic difference between a traditional 401(k) and a Roth 401(k) is when you pay the taxes. In a traditional 401(k), you make contributions with pre-tax dollars, so you get a tax break up front that lowers your current income tax bill. With a Roth 401(k), it’s the reverse: you make contributions with after-tax dollars, but withdrawals of contributions and earnings are 100% tax-free at age 59½, so long as you’ve held the account for five years. Although everyone’s situation will be different, many advisors suggest splitting your contributions between your traditional 401(k) and Roth 401(k) to enjoy their dual tax benefits.