401k Results improve with thoughtful use of auto features The assumption when plan sponsors began to include auto features in their 401(k) plans was that participation rates and deferral amounts would increase — but no one knew for sure. As time has passed, it appears the assumption was good: auto-enrollment and auto-increases have had very [...]
Q: We know that emotion plays a role in money, and therefore retirement. What are some ways we can help employees offset less-than-rational emotion and thus make better decisions about their retirements? A: Behavioral economics have been the subject of much discussion in recent years, as you know. Money is a deeply personal subject for [...]
Q: In reviewing employment data at our company, we were surprised to find the average time our employees stay with us to be about 6 years. Considering that many employees who leave us take a lump sum distribution from their 401(k) accounts, it made us wonder what we can do help more transient employees prepare [...]
Looking to max out your contributions to your retirement plan? Here are your limits: 401(k) Maximum Participant Deferral $19,000* *$25,000 for those age 50 or over, if the plan permits Defined Contribution Maximum Annual Addition $56,000 Highly Compensated Employee Threshold $125,000 Annual Compensation Limit $280,000 Remember: There's still time to set up your Safe Harbor [...]
Financial wellness and financial literacy is important for individuals and their employers, in part because of the role it may play in retirement. Individuals benefit when they are financially healthy, because it makes them more prepared to retire on time and with enough money. Companies benefit, too, because along with the potential for better-controlled benefit- [...]
As an employer, you face a challenge: attracting and retaining the right talent is necessary to drive your business forward. At the same time, you likely feel a responsibility to help your employees achieve retirement financially prepared. Your 401(k) plan can help manage both of these goals. Keeping an eye on the latest trends and [...]
401k Plan Sponsor’s Quarterly Calendar April If a plan audit is required in connection with the Form 5500, make arrangements with an independent accountant/auditor for the audit to be completed before the Form 5500 due date (calendar-year plans). Audit first quarter payroll and plan deposit dates to ensure compliance with the Department of Labor’s rules [...]
To help allay their fears, MetLife has issued the first of four white papers on financial wellness. Fifty-three percent of employees worry about their financial future, and 46% feel overwhelmed by financial decisions, according to MetLife’s annual Employee Benefit Trends Survey (EBTS). In response, MetLife has created a four-part white paper series, “Financial [...]
Travel Insurance is offered by many providers and readily available but do you need it? Whether you need travel insurance is likely to depend on your level of coverage from existing homeowner's, medical, automobile, and life insurance policies. In many instances, travel insurance may duplicate coverage that you already have. Travel insurance is likely to include [...]
When investing, don't put all of your eggs in one basket. Use diversification to manage risk and potentially enhance performance. In today's market environment, diversification is more important than ever.(1) But what is the thinking behind this big word? The process of diversifying -- or dividing your money among different types of investments -- is [...]
