Like many businesses, you may be feeling the financial crunch these days and be tempted to use money you deduct for taxes and retirement plan contributions from employees’ wages. Failing to remit payroll taxes and retirement plan contributions in a timely manner is not only a violation of an employer’s legal obligation, it can also…
A Multiple Employer Plan (MEP) is a qualified retirement plan for two or more employers who are not related. It can be particularly appealing to smaller businesses for a number of reasons. MEPs can be easier and may be cost effective to operate, allowing employers to focus on running their businesses while a professional manages…
The use of auto features in 401(k) plans has continued to climb in popularity over the past decade. In fact, auto features such as automatic enrollment and auto escalation are considered best practices in 401(k) plan design as ways to help boost participation and employee savings rates.1 Many large 401(k) retirement plans offer auto features.…
Last week the yield on 2-year Treasurys eclipsed the yield on 10-year Treasurys for the first time since 2007. This ‘inversion’ of the yield curve is widely-followed because it has preceded every recession post-WWII. That’s not to say that it causes recessions, but it is considered a harbinger of slower growth. (recessions are shaded in gray) Lots…
Qualified employer-sponsored retirement plans can provide a number of tax and nontax benefits to employees. The employee perspective on these plans should certainly consider the obvious tax deferral and retirement savings benefits. Additionally, however, employees should consider various strategies to optimize their benefits. For example, employees will approach their retirement plans most effectively when they…
Successful financial wellness programs help employees feel in control and on track in their financial lives – and that includes planning for retirement. We’ve outlined five quick ways to help your employees work toward financial wellness when savings for their retirement future!
ESG, or environmental, social and governance funds, can be appealing to many investors, including millennials. These funds may be viewed as a proactive way to encourage reluctant and under-prepared millennials to save for retirement. But is it a good idea to include ESG funds in your plan’s investment menu to entice investment do-gooders to boost…
You may have heard about a “cash balance plan” and wondered whether it would be something advantageous for your business. A cash balance plan operates differently from other types of traditional retirement plans in that it combines features of both defined benefit and defined contribution plans. Technically, a cash balance plan is classified as a…
In its 28th annual Retirement Confidence Survey, the Employee Benefit Research Institute (EBRI) discovered that 64% of today’s workers feel very or somewhat confident in having enough money to retire comfortably, up from 60% in 2017. And although far more retirees are very confident in their retirement prospects than workers (32% versus 17%, respectively), retiree…
SIMA supports employers in all areas of their business and is proud to bring you this news regarding Employer Sponsored Retirement Plans. Click here to read the Q2 update.
