…There? Matching and profit sharing contributions represent the primary two types of contributions that are seen in 401(k) plans. A matching contribution can be based on a specific amount of employee contribution (a 50% match on the first 6% of an employee’s contribution, for example)….
…plan year. The notice must describe your plan’s safe harbor provisions and the employees’ rights and obligations under the plan. For employees who become eligible to join the plan after the start of the year, notice must be provided not more than 90 days before…
…presumably “key” employees, while younger, and/or lower paid employees receive a lower percentage of the total employer contribution to the plan. New Comparability plans are typically designed to benefit owners and key employees over rank and file employees, and can be used if the employer…
…their retirement accounts without committing any of their own money.” Employee Benefit News listed several other features of the arrangement: Employees who join the program are still allowed to defer money into the plan in the traditional sense, but they cannot receive an employer contribution…
…so at a savings rate of 6 percent of pay or higher. Provide easy-to-use tools for employees. Again according to Alight, companies are increasingly adding personalized help tools or products and services to help employees who may want to go beyond auto-enroll. 61 percent of…
…supersede. When it comes to employee benefits, however, you can help separate yourself from the crowd. For our purposes, let’s divide benefits into “tangible” and “intangible.” Tangible benefits can include – but are not limited to — retirement savings options, both employee– and company-contributed. This…
…employees. In addition, other advantages include: Simplicity. Benefits are structured in a way that is easily communicated to employees. Employees are better able to appreciate the value of the plan since benefits are communicated in the form of a lump sum account balance, including…
…tend towards a hands-off approach when it comes to “getting too personal” with employees. Also, their older employees tend to already “get it” when it comes to retirement savings. But, again, those companies are doing themselves a disservice, as those older employees retire and the…
…under which an employee must complete either a one year of service requirement (with the 1,000-hour rule) or three consecutive years of service where the employee completes at least 500 hours of service. Again, anything that encourages employers and employees to save – or expand…
…and redo their contribution tracking, make corrections, and ultimately pay a penalty. Bonuses. Some clients give employees a monetary bonus at the end of the year, and they don’t want to see deductions taken from those bonuses. There are a couple of potential problems here:…
Have you or your employees ever wondered about the most efficient ways of drawing down your retirement assets? Are you offering a plan with enough flexibility to meet the needs of your diverse employee group? With so many different puzzle pieces, it’s no wonder so…
…retains the policy on the employee’s life even if that employee retires. Most BOLI providers track plan participants on a quarterly basis via their Social Security numbers, and can therefore learn of the retired employee’s death within a reasonable time frame. The key factor to…