More from the LT Trust Blog
In May, the House Ways and Means Committee unanimously approved the Securing a Strong Retirement Act of 2021 (SECURE Act 2.0). This proposed legislation is building on top of the original SECURE Act that went into effect in December 2019 with ideas that the Biden Administration has floated in the past. Unlike the typical gridlock that encompasses Washington D.C., the original SECURE Act enjoyed large bi-partisan support on all sides of the political spectrum. By all indications, the SECURE Act 2.0 is also going to enjoy broad support across political divides and should easily become the law by the end of the year. This bill’s passage would conclude two years of the most significant changes since 401(k) plans became the most common retirement vehicle in America.
On September 18, 2021, the Department of Labor’s (DOL) interim final rule on lifetime income disclosures for defined contribution plans will take effect. All 401(k) providers will be required to show participants the equivalent of their retirement savings as monthly retirement income under two potential annuity scenarios.
1. A Single Life Annuity (SLA)
2. Qualified Joint and 100% Survivor Annuity (QJSA)
As an employer, there are considerable benefits by offering a 401(k) plan that go unnoticed. Whether it is the tax savings or being able attract and retain top talent. It remains an essential benefit to run a successful business. The good news is, it has never been more efficient, affordable, and easier to understand.
401(k)s plan more feasible to employers of all sizes. There are several varied factors a business owner needs to address when selecting the 401(k) provide. Learn more on how to choose the best small business 401(k) provider at LT Trust.
By reviewing the 401K’s of 59,000 American workers across all 50 states during 2020, we discovered that those who were fortunate enough to remain employed during this historic economic downturn were actually able to save more than they had in previous, non-pandemic years that saw the economy fare far better overall.
Before your employee becomes a participant in your 401(k) Plan, they must satisfy the 401(k) eligibility
requirements, as written in your Plan’s document. The Plan document is the rule book for how you want to administer
your Plan within the confines of IRS rules. You can always amend your document in the future, but you always must
follow its written provisions in the present.
Starting and maintaining a 401(k) plan is a straightforward process compared to other employee benefits such as health care. With 4 simple steps, an employer can set up a 401(k) plan that will provide an invaluable benefit to their employees.
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.
Joseph R. Biden was sworn in as the 46th President of the United States on January 20. While the incoming administration is expected to take significant steps on a host of issues in the coming weeks and months, there are several proposed changes to the American retirement system that could impact 401(k)s for people across the income spectrum and some that will increase awareness of the benefits of offering 401(k)s to employees.
Over the past year, the average women’s retirement savings compared to men has decreased. Women have 68 cents saved for retirement to every dollar saved by men. This is a decrease from 70 cents in 2019.