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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 MoreThose two simple steps allow compound interest to work its powers and easily set you up for retirement. Unfortunately, it’s a lot easier said than done. Especially for Millennials, who have more debt than any other generation, according to the New York Federal Reserve. Millennials — anyone born between 1981 and 1996 — are experiencing student loan debt, car loan debt and worst of all, credit card debt. Simple math suggests it’s probably better to pay off debt before saving for retirement, but one could argue that you should always save for retirement while paying off debt. Let’s first discuss the importance of savings for your future.
Read MoreThe recent market sell-off may seem alarming but we can find comfort in the history of the markets. It shows us that all things are cyclical and we’ll likely see a return to good times before too long. Instead of making emotional investment decisions, now is a great time for retirement savers to revisit their long-term plans and make sure they’re still on track toward their retirement goals. Part of that could mean rolling over an old 401(k) or IRA into their current LT Trust 401(k). For the retirement saver who isn’t sure why a rollover makes sense, we discuss considerations in this post.
Read MoreDetermining 401(k) participation rates has historically been less a science and more of an estimate. You may ask yourself, what criteria makes up these rates? I did some digging and have found that the common assumption to define participation rate is to divide eligible participants with a balance by total eligible participants, and explain the details in this post.
Read MoreThe CARES Act was passed by Congress to provide economic relief in response to the COVID-19 pandemic. The new legislation created changes to both 401(k) loans and withdrawals. To be eligible for the new loan and withdrawal provision, the individual participant, or his or her spouse or dependent, must have been diagnosed with COVID-19, or the individual has suffered adverse financial consequences du to COVID-19. We outline what that may mean for you.
Read MoreWith the U.S. taking precautionary measures to control the spread of COVID-19, small businesses are rightfully concerned for their future. Although we pray for an end to this virus, there is a silver lining. Small business owners not adversely affected are finding that right now is a great time to add an important employee benefit – a retirement.
Why is now an opportune time to start a 401(k)? Read to find more.
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