Plan Sponsor Education Blog

The need to attract and retain top talent is a key consideration when companies establish employee benefits plans. Providing workers, including highly compensated employees, the opportunity to invest in company stock can be an enticing recruitment tool and can also establish both a sense of loyalty and commitment through stock ownership. 

Just when you thought it was safe to assume your benefits package was meeting all your needs, the always unpredictable nature of the regulatory environment governing retirement plans has created a potential issue for highly compensated employees (HCEs). 

In today’s world, attracting, motivating, and retaining key employees to help build a successful business —while remaining on budget—has become more challenging than ever.

For small business owners, 401(k) plans can be a powerful tool to enhance financial security in retirement for both you and your employees. Plus, a 401(k) plan can help you attract and retain top talent and even offer your business significant tax advantages. However, navigating the complexities of setting up a 401(k) plan can feel daunting.

Individual(k)^TM plans, also known as Solo 401(k) plans or self-employed 401(k)s, are designed for self-employed individuals or small business owners with no additional non-spouse employees. These plans offer many of the same benefits as traditional 401(k) plans, including tax-deferred growth and the potential for employer contributions. However, there are some requirements you need to consider before your spouse can participate in your plan.

As a plan sponsor, you may be wondering if you are required to provide a 401(k) match for long-term, part-time employees. Although the rules and regulations of the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act) and the SECURE 2.0 Act of 2022 (SECURE 2.0) have changed the eligibility rules for long-term, part-time employees, the requirements for matching contributions have stayed the same. Read on to learn more about these provisions and why offering an employer 401(k) match can be valuable to your small business.

Fiduciary. It's become somewhat of a buzzword over the last few years in the retirement industry—and for good reason. With many retirement plan sponsors falsely believing they don’t have fiduciary responsibilities in relation to their plan, and the Employment Retirement Income Security Act of 1974 (ERISA) holding them to a rigorous standard regardless, there’s a clear disconnect when it comes to who is a plan fiduciary is and what their responsibilities are.

You've probably heard that the only two guarantees in life are death and taxes—but with recent stock market volatility, many retirement plan participants would like to add three more items to that list of guarantees: preservation of principal (I can't lose what I contributed), investment return (I know how much my money will earn), and lifetime income (I can't outlive my investments).

Growing your business is always top of mind, and as a small business owner, you have to work strategically to earn community support and grow brand awareness. While holding a sale or giving out coupons may facilitate the expansion of your business, consider how offering a 401(k) and financial wellness education as part of your benefits package can be an alternative strategy to stand out, as well as attract and retain team members who can help your business grow in the long-term.

As tax time approaches each year, small business owners often begin scrambling to find ways to decrease their annual corporate taxable income—sometimes resorting to making large purchases to write off as a business expense or even adding employee benefits, like a retirement plan, to their benefits package. And lately, profit sharing has become a hot topic in the industry.