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There are three great and simple reasons why every small business owner should consider offering a 401(k) plan to their employees: it’s good for them, it’s good for you, and it’s good for business. Obviously, those are some broad statements, but in this blog, we hope to give you some concrete reasons for starting a small business 401(k) and offer some resources on how to start a 401(k) for small business.
Read MoreA Safe Harbor 401(k) Plan is a type of 401(k) Plan with a mandatory employer contribution that allows the plan to satisfy annual compliance tests. The plan will automatically pass ADP and ACP Nondiscrimination Tests and will be deemed as satisfying Top Heavy minimum contribution requirements. This plan design allows highly compensated and key employees maximize their personal deferral contributions ($19,500) for 2020. If you do not offer a Safe Harbor employer contribution, your plan is subject to these tests, and there may be limitations to deferral contributions for key and highly compensated employees.
Read MoreFiling the Federal Form 5500 is the last step of the compliance process, and needs to be completed by the employer every year, and the process usually begins immediately following the end of a plan year. For most of LT Trust’s small business 401(k) clients, a 12/31 year-end plan date is common, and there is a significant flurry of compliance activity surrounding the process. Although this year’s deadline has been extended for most plans, due to COVID-19, the compliance process remains the same. Let’s take a deep dive into the processes that the LT Trust team uses to ensure each client’s compliance needs are satisfied.
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