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With the recent passage of SECURE Act 2.0 and the IRS' release of substantially higher contribution limits for 401(k)s, small employers are only just beginning their journey to design and offer robust retirement benefits.
As background, changes made by the Tax Cuts and Jobs Act in 2017 required the IRS to revise the withholding tables and develop new forms to use to withhold taxes from periodic payments.
By educating employees in these final weeks of 2022, you can help them make the most of their contributions while also helping them stay happy, healthy, and productive.
The actuarial group relayed its support of automatic enrollment in new 401(k)s, benefit portability and other key provisions of the landmark legislation, expected to become law by the end of 2022.
In some cases, plan sponsors are being told that their termination basis funding levels are significantly lower than they actually are, which could be a result of misinformation tied to outdated glide paths or lump sum pension payouts.
Looking to the year ahead, now's the time to take stock of your company's retirement plan to ensure it has adopted the following automatic features that help set your workforce up for investment success.
While this isn't a straightforward issue, there are options available to employers of all sizes as long as you carefully consider the best fit from a coverage, compliance, and administration perspective.