401(k) Archives - Page 3 of 4 - HFM Investment Advisors, LLC

For part-time workers, saving for retirement can be a challenge. Many part-time employees are often excluded from 401(k) plans because they often don’t meet the plan’s eligibility requirements. This includes many students, parents and individuals with multiple part-time jobs. However, new legislation that goes into effect on January 1, 2024, is about to change that. Long-Term, Part-Time Eligibility Rules for 2024 Effective on January 1, 401(k) plans must allow employees who have worked more than 500 hours of service in three consecutive 12-month periods to contribute elective deferrals to the plan. Let’s look at an example. Example 1 Alex was…

Can Our 401(k) Plan Help Us Attract and Retain Star Employees?

401(k)

With thoughtful design features, you can structure a 401(k) plan that stands out in a time of talent scarcity and meets your employees’ needs. Looking to attract and retain high-quality talent in today’s competitive labor market? Enhancing your 401(k) plan design could be the answer. It could increase your employees’ retirement security and financial well-being while motivating talent to join and stay with the company long-term. With many businesses struggling with staffing issues, savvy executives are realizing that boosting their retirement plan benefits can be a valuable part of the solution. In fact, 35% of employers have already taken…

Rich vs. Wealthy: What’s the Difference?

401(k), Financial Wellness, Podcast

Although the two might be used interchangeably, rich and wealthy have two meanings in financial planning. CERTIFIED FINANCIAL PLANNERS Jason Gabrieli and Catherine Allen-Carlozo discuss the importance of saving, building wealth, and aligning spending with financial goals. They emphasize the role of net worth and assets in achieving financial freedom, dispel the belief that wealth is only about lifestyle and consumption, and stress the significance of living below one's means and making wise financial choices. They provide examples and insights to encourage long-term wealth building and advise against get-rich-quick schemes. Tune into this episode to also learn: Is income…

Compete for Top Talent in a Tight Labor Market

401(k), Financial Wellness

To compete for top talent, companies are looking for innovative ways to stand out in a competitive labor market. Employees are looking for beefed-up benefits that support their social, physical, mental, and financial well-being. Focusing on employee well-being is a key strategy companies use to compete for top talent. Creating a culture of wellness in the workplace is a trend that’s catching on with employers across the country. Especially with the tight labor market in New Jersey, this could be a way to stand out from the competition. A culture of wellness encourages employee health and well-being holistically by…

Is Financial Education on Company Time Worth It?

401(k), Financial Wellness

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,…