401(k) Archives - Page 4 of 6 - HFM Investment Advisors, LLC

For business owners, striking a balance between operating costs and profit is the cornerstone of success. Operating costs include everyday expenses like salaries, rent and supplies. Profit, on the other hand, is what remains after all these operating costs have been paid. It's the reward for the risks taken and the value created by your business. Often, savvy business owners will look to tax strategies to help find the sweet spot, where operating costs are managed efficiently while maximizing profit. By utilizing tax-friendly strategies, owners can reduce their tax liability, effectively boosting profits without increasing sales or cutting costs. Let's…

6 Common Administrative Tasks That Can Morph Into 401(k) Plan Headaches

401(k)

Managing a 401(k) plan can leave even the most seasoned administrators feeling overwhelmed. With proper support, you can simplify the complex task of retirement plan management. Top 401(k) Plan Headaches The first step is to understand the potential problems. Here are some common issues that can cause headaches for plan sponsors: Uploading Payroll Determining Eligibility Over-Contributions Investment Changes Distributing Notices Regulatory and Legislative Updates Navigating the labyrinth of retirement plan management can seem like a daunting challenge for any plan sponsor, employer or 401(k) plan administrator. The various administrative tasks, ranging from uploading payroll to handling investment changes, can…

Talent Management and Total Rewards Newsletter

401(k), Retirement Planning

The landscape of talent management and total rewards is transforming rapidly; it's vital to ensure that your 401k plan design adapts to the changing times of employment. The future of talent management and total rewards is changing. With the SECURE Act 2.0 now in effect, the field of plan design must keep pace with the ever-evolving employment landscape. There are a number of ways that can help you stay ahead of the competition, toward securing better outcomes for your workforce. Our plan sponsor newsletter focuses on: Total Rewards: Helping define and implement effective compensation strategies tailored to individual needs. Plan…

SECURE Act Update: Two-Year Delay in Roth Catch-Up Requirements

401(k), Secure Act

The Internal Revenue Service (IRS) has granted a two-year delay in the Roth catch-up requirements. This decision brings relief to retirement plan participants and sponsors who were facing looming compliance deadlines. Let's delve into the details of this breaking news. Key points to note: Catch-up contributions are available to plan participants over age 50, regardless of income, the catch-up contribution limit is $7,500 in 2023. Section 603 of SECURE 2.0 states that catch-up contributions for qualified retirement plans are subject to Roth tax treatment, except for participants with Social Security tax wages of $145,000 or less (indexed for inflation). The original…

Is the Stock Market Affecting Your Retirement Savings?

401(k), Investments

One of the keys to a successful retirement is to keep saving, no matter what the stock market is doing. The stock market is unpredictable. It goes up, it goes down, and it often leaves investors feeling uncertain about their financial future. But what does that mean for people saving for retirement? While it may be tempting to pull out of the market during a downturn, history tells us it’s often better to stay invested. HFM Investment Advisors, LLC. 856-232-2270 401kteam@hfmadvisors.com 102 West High Street Suite 200, Glassboro, New Jersey 08028 HFM Investment Advisors, LLC is a registered…

Unlock Employee Potential with an Effective and Appealing Total Rewards Program

401(k), Financial Wellness

New Jersey businesses are adding holistic benefits and introducing Total Rewards programs designed to improve employee satisfaction. You may have heard of a Total Rewards Strategy. It is a recruiting and retention strategy given that it goes beyond the traditional salary benefits by providing holistic rewards that entail added motivation for employees. This strategy allows companies to improve employee satisfaction without compromising business goals – it's an all-around win! What is a Total Rewards Strategy? A Total Rewards Strategy is an approach that organizations take to structure and manage employees' compensation and benefits programs, encompassing both financial and non-financial incentives…

SECURE Act Update: Will Your 401(k) Plan Be Compliant in 2024?

401(k), Secure Act

Here are the SECURE Act provisions New Jersey businesses need to be aware of for next year. SECURE Act Provisions Required for 2024 Luckily, the required changes for 2024 are minimal. Long-term, Part-time Employees As part of SECURE 1.0, there is an important provision about long-term, part-time employees and retirement plan eligibility. In short, effective January 1, 2024, 401(k) plans must allow employees who have worked 500 hours or more in the past three consecutive 12-month periods to contribute elective deferrals to the plan. Changes for High Earning Pre-Retirees (DELAYED FOR 2 YEARS) Employees looking to maximize their retirement savings with…

Should You Add an Automatic Safe Harbor IRA to Your Plan?

401(k)

High employee turnover could lead to a rise in small 401(k) accounts. Explore how adding an automatic Safe Harbor IRA provision to your plan may help reduce plan costs and potential fiduciary risks. In 2022, more than 50 million Americans left their jobs and in the last two years, there has been record-breaking employee turnover.[1] While the number of employee departures has begun to decrease, it still remains higher than pre-pandemic levels. Employee turnover can cause problems for employers, such as many small 401(k) accounts being left behind in the company's plan. Such accounts can amplify plan costs and…

Long-Term Part-Time Employees Get a Boost from the SECURE Act in 2024 and Beyond

401(k)

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…