Increasing 401K Contribution – social media only, no blog

July 18th, 2019

With changes in the new tax law, you may have decided to lower your federal tax withholding so that you’re taking home more pay. It may be very tempting to use a fatter wallet to buy more things. But if you are falling short of your retirement goals, consider increasing your 401(k) contribution instead.

Balancing Act: Income, Expenses and Withdrawals

July 12th, 2019

In projecting what you’ll need to save in order to generate enough retirement income, it helps to (1) prepare a realistic household budget and (2) understand what types of expenses you’ll have once you stop earning a regular paycheck.

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What 401 (K) Records Do You Need to Keep?

July 8th, 2019

Just as you do with your personal income tax documents, you need to maintain records related to the plan. This is for a couple of reasons, one of which is being ready to defend actions and decisions if the plan is ever audited. We suggest you review the IRS and the DOL websites for complete information about what you need to keep and for how long.

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July Checklist

July 3rd, 2019

  • Conduct a review of second quarter payroll and plan deposit dates to ensure compliance with the Department of Labor’s rules regarding timely deposit of participant contributions and loan repayments.
  • Verify that employees who became eligible for the plan between April 1 and June 30 received and returned an enrollment form. Follow up for forms that were not returned.
  • Ensure that the plan’s Form 5500 is submitted by July 31, unless an extension of time to file applies (calendar-year plans).

The Importance of Financial Wellness

July 2nd, 2019

Surprising employer response in 2018

It’s interesting to compare changes year by year, but over time is when real results emerge. That’s often true in retirement plans; while there may be small, incremental changes in enrollment, investments and plan design one year to the next, comparing decades can be much more illuminating.

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July Checklist

June 25th, 2019
  • Conduct a review of second quarter payroll and plan deposit dates to ensure compliance with the Department of Labor’s rules regarding timely deposit of participant contributions and loan
  • Verify that employees who became eligible for the plan between April 1 and June 30 received and returned an enrollment Follow up for forms that were not returned.
  • Ensure that the plan’s Form 5500 is submitted by July 31, unless an extension of time to file applies (calendar-year plans).

How To Plan For A Long Retirement?

June 18th, 2019

When most of us think about retirement, the most challenging question we face is, ‘How long do you plan for retirement’? The most typical answer is 20 to 25 years. If standard retirement age is 65 years old, then planning for 20 to 25 years would fall within mortality data on island for most men and women.

However, what happens if you are the exception? What happens if you have good family genes and live a long time?

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Helping Employees Choose Funds

June 17th, 2019

Employees sometimes get so stressed trying to understand the funds that they give up and “just pick one.” Here are suggestions on how you can simplify the offerings and help your employees understand those that are available.

The first suggestion is to work with your plan’s advisor to develop an IPS, or Investment Policy Statement. It will Read the rest of this entry »

First-time Home Buyers Rely More on Family for Mortgage Help

June 10th, 2019

The way that people are financing their first home purchase is changing. More than 26% of mortgage borrowers who used FHA-insured loans received help from a relative to make the down payment, according to 2018 FHA data reported by the Wall Street Journal. That number is up from 22% in 2011.

Rising home prices and interest rates made it difficult for buyers to save enough for down payments — not to mention generally higher debt loads from college loans.7 Further adding to borrower stress is the fact that the gap between owning and renting continues to widen, according to Freddie Mac.8

Traditional Accounts Continue Sharing the Stage with Roth Accounts

June 5th, 2019

Tax diversity among the benefits

As employers continue looking for ways to help employees retire securely, the Roth account has become a regular plan feature. In the five years starting in 2014, in fact, inclusion of a Roth account feature had increased 18.1%, so that by 2018, 72.7% of 401(k) and 403(b) plans included one. In the largest plans, those with more than $200 million in assets, nearly 8 in 10 plans now include a Roth feature.4

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