401(k) Archives - Page 2 of 3 - HFM Investment Advisors, LLC

Financial education is becoming increasingly important in today's world, but is it worth the company's time and resources to provide such a service? Helping employees reduce financial stress can help improve wellness, retention and productivity – and cost a fraction of the time lost from overwhelmed employees. Looking for a way to combat high turnover and stress? Financial education and wellness programs for employees may help! Not only do financial issues affect employee productivity, but they can also impact your ability to retain staff. A recent survey found that more than half of stressed employees (55%) are distracted by…

How Financial Stress Impacts Your Company

401(k), Financial Wellness

Financial stress is having a profound impact on workers, and in turn, New Jersey business leaders. Stressed employees are feeling the pinch; this can affect productivity, retention, and engagement at work. Financial education could be an easy solution that helps your employees and overall business. Many employees are having a difficult time coping with financial stress. Weathering the last several years – a pandemic, geopolitical tensions and economic uncertainty – has only exacerbated their stress levels. Unsurprisingly, elevated stress carries into the workplace impacting operational costs including retention, mental health expenses, productivity and the company’s bottom line. Inflation, Debt…

Cash Balance Plan: Could You Save Even More?

401(k), Business Owners, Retirement Planning

If you are a New Jersey business owner looking to maximize tax deductions and accelerated retirement savings, you might consider a cash balance plan! Cash balance plans provide a unique way to save for retirement that combines features of both traditional defined benefit plans and 401(k) plans. A cash balance plan can help you and your key employees save upwards of $200,000 per year for retirement! If you are looking for larger tax deductions and accelerated retirement savings, a Cash Balance Plan may be a perfect solution for you. Cash Balance Plans at a Glance Key Benefits Include: Tax advantages…

Fiduciary Best Practices: Why Investment Oversight is Important for 401(k) Committees

401(k), Business Owners

Selecting and monitoring investment options for your company’s retirement plan is just one part of your fiduciary responsibility. How do you evaluate, benchmark and assess your plan and what other expertise or protection should you consider? An investment committee has a lot of responsibilities, including selecting and monitoring the investment options for the retirement plan; but there are plenty of resources available to help make informed decisions. By being proactive and educated on these topics, you can reduce the risk of lawsuits related to excessive fees or violations of ERISA. In recent years, class action lawsuits have been filed against…

5 Things You Need to Know About Secure Act 2.0

401(k), Investments, Podcast

You’re probably not going to read the Secure Act 2.0’s ~100 provisions, so we’re telling you the top 5 things you need to know about it, even if you’re not retiring. The act is being phased into implementation from 2023 - 2033. We’ll let you know the key dates you need to keep in mind. Tune into this episode to also learn: How the Secure Act 2.0 will affect you When key aspects of the Secure Act 2.0 will go into effect What you need to know if you aren’t retiring soon WHAT WE DISCUSSED (00:31) Secure Act 2.0: what…

Defining Workplace Goals is a Vital First Step to an Effective Retirement Plan

401(k), Business Owners

Retirement plans can be as unique as your company and its employees. Yet many committees do not take the time to set specific goals for their plans. Without defined goals, it can be difficult to create an effective retirement plan that meets expectations. Here’s helpful guidance about defining your plan goals and offering this benefit which helps everyone save toward retirement success. Each time you discuss the company’s 401(k) plan, it is an opportunity to identify goals and align plan design. Aligning plan goals with specific features has the potential to improve outcomes. Plan considerations might include who is eligible,…

SECURE Act 2.0 – What Employers Need to Know

401(k), Business Owners

After a lot of excitement, Congress finally passed the Consolidated Appropriations Act, which included several new retirement plan legislations. The SECURE 2.0 and other provisions strive to expand access to retirement plans, increase retirement savings, help American’s preserve income and streamline retirement plan rules. With over 92 different retirement plan provisions, we want to make it easier for employers, fiduciaries and administrators to digest. In this summary, we focus on the most common sections that are most applicable in your leadership position. Let's work together to secure a bright future. Effective Immediately | 2023 Roth Employer Contributions Employers may now…

Build a 401(k) Dream Team with the Power of Partnership

401(k), Business Owners

Leverage service providers to help your 401(k) plan run more smoothly. As a retirement plan sponsor, you are a valuable member of a team that includes your recordkeeper, third-party administrator (TPA), financial wellness provider and retirement plan advisor. Each member must uphold their roles and responsibilities to maintain a stable and well-standing retirement plan. Much like a table, if one leg fails to support it, you may find yourself with a mess on your hands. Your retirement plan service providers can help support critical functions such as recordkeeping, plan design, compliance, administration, participant education, investment selection, management and monitoring —…

5 Financial Wellness Tips Your Employees Will Thank You For

401(k), Business Owners, Financial Wellness

A financial wellness program can be an extremely valuable benefit. Learn how it can help employees reduce stress while improving workplace productivity. Financial wellness programs are becoming an important benefit for companies of all sizes. In 2021, almost half (46%) of all employers offered financial wellness programs, up from 40% in 2020. Additionally, interest from the workforce had only increased as they assessed how their finances were impacted due to the COVID-19 pandemic. The primary focus of a financial wellness program is to provide education and resources to help employees better manage their finances and reduce related stress. A recent…

4 Simple Steps to Help Understand the Transition to a New 401(k) Recordkeeper

401(k), Business Owners

Learn what to expect when changing recordkeepers to avoid unpleasant surprises. Change can be exciting but is sometimes stressful. However, transitioning to a new 401(k) recordkeeper shouldn’t be a taxing experience. In this article, we’re going to talk step-by-step through the events that may take place and provide inside knowledge about what to expect, so there are few surprises for you. With our clients, we have found that when they are properly prepared for the events ahead, everyone experiences a smooth recordkeeper transition process. STEP 1 | RECOGNITION Congratulations! Recognizing the need for change is the first step toward finding…