Aligning Plan Design with Client Goals Most of us live in homes that were not custom-designed for us. We adapt to them rather than expect them to be optimized to how we like to live. Most retirement plans are sold the same way. Companies buy…
…have. Let’s talk about two of them – namely, things we can address in plan design and things we can communicate to help set expectations. In plan design, our first goal is participation. To that end, auto-enrollment has been proven to be effective in getting…
Designing an effective retirement plan that helps meet a plan sponsor’s objectives and improves employees’ financial wellness can be challenging, especially if certain plan design considerations are not taken into account….
…deducted are not included in the employee’s taxable wages or subject to income tax withholding requirements. However, 401(k) and 403(b) plans that accept designated Roth contributions can specify that the automatic contributions will be designated Roth contributions, which means they are deducted from an employee’s…
Designing effective qualified retirement plans that meet a plan sponsor’s objectives has become somewhat of a lost art. The reasons are many: Cookie-cutter designs are easier; safe harbor designs get media attention; the flexibility of modern plan documents are overlooked; and pre-approved plans can satisfy…
Designing effective qualified retirement plans that meet a plan sponsor’s objectives has become somewhat of a lost art. The reasons are many: Cookie-cutter designs are easier; safe harbor designs get media attention; the flexibility of modern plan documents are overlooked; and pre-approved plans can satisfy…
Designing effective qualified retirement plans that meet a plan sponsor’s objectives has become somewhat of a lost art. The reasons are many: Cookie-cutter designs are easier; safe harbor designs get media attention; the flexibility of modern plan documents are overlooked; and pre-approved plans can satisfy…
…depending on pay increases and longevity. To mitigate the rapid cost increase plans can use a career average salary, much like 401(K) plans do. Whether this gets coupled with a traditional formula design or uses a Cash Balance design, the result is a lower, more…
Pentegra administers many 401(k) plans that include standard after-tax contributions—the non-designated Roth 401(k) type. And one thing we have learned is that after-tax contributions can create problems for the sponsor if the plan is not carefully designed and properly administrated. In a 401(k) plan, standard…
…worker-need has shifted from asset accumulation to securing guaranteed retirement income. The pendulum is swinging back in favor of DB plans—but not to the legacy designs of the past—but to those that have incorporated defined contribution (DC) elements. Hybrid cash balance designs are soaring in…
…must receive no direct or indirect compensation for maintaining the plan other than a reasonable reimbursement of expenses incurred to operate the plan. WHY THE CONFUSION? The 401(a)/403(b) plan design is common in the not-for-profit market. When a not-for-profit employer has a 403(b) and a…
…have the plan design conversation? Cash Balance 101. Our virtual classroom is open and we want to provide you with the knowledge you need! Core Curriculum Plan Design best practices Strategic selection – which clients may be the best fit and why Talking points for…