Mid-Year Momentum: Time for a 401(k) Check-In

Wow, can you believe we're already halfway through the year? It's a great time for employers to perform a mid-year 401(k) check-up. This proactive move ensures your company's retirement plan is on track and aligns with your goals—and those of your employees—before the year's end and any regulatory deadlines sneak up on you. It's also a great time to calculate your Risk Score here: https://rtservices.us/

 

Review Participation Rates

Start by assessing how many of your employees are enrolled in the 401(k) plan. Analyzing trends in participation will help you identify areas needing improvement. If participation is low, consider strategies like educational campaigns or enhancing employer-match contributions to increase engagement and demonstrate your commitment to their financial health.

 

Evaluate Contribution Levels

It's crucial to look at whether employees are contributing enough to maximize their benefits, especially matching contributions. Encourage them to adjust their contributions now, which can positively impact their retirement outcomes. Providing resources or workshops on financial literacy could empower employees to make informed decisions about their saving strategies.

 

Ensure Compliance

No one wants to face penalties for non-compliance. Make sure to review your 401(k) plan's alignment with regulatory requirements to avoid complications later in the year. Be aware of common compliance pitfalls and take preventive action to ensure your plan meets all necessary standards.

 

Assess Competitiveness

To remain competitive in attracting and retaining talent, compare your 401(k) plan features with industry benchmarks. Offering a robust retirement plan can be pivotal for your recruitment strategies. Consider benchmarking against industry standards to ensure your plan’s competitiveness and appeal to top talent.

 

Keep Your Plan on Course

A mid-year check-in isn’t just a box to tick off; it’s a strategic step to keep your 401(k) plan effective. Early adjustments help prevent last-minute scrambles and ensure your retirement strategy is beneficial for both your business and employees. By focusing on these crucial areas now, you're setting up both the company and its workforce for a prosperous future.

 

Reach out to your adviser today to schedule your personalized financial review!