What 401k improvements are you considering for your plan in 2020? Most leading edge employers will have the following items on their list of 401k improvements for the coming year.
You will be surprised at many of these.
For more than 30 years I have helped plan sponsors design and manage successful 401k plans. From Apple and IBM to John Deere and Mazda Motor Corporation, I have had the privilege of working with a number of great Fortune 500 plans, as well as hundreds of excellent small and medium-sized plans. I have observed that the best plans always seem to possess the following seven attributes.
Having worked as a 401k plan consultant and investment adviser for more than 30 years, I have seen a wide variety of plan designs.
Employers have the responsibility to help their employees achieve retirement readiness by offering a 401k plan with features that guide participants down the path to retirement readiness.
Many 401k plan sponsors have opted to periodically re-enroll all their participants into the Qualified Default Investment Alternative (QDIA) in their 401k plans. You may wish to re-enroll your participants since doing so benefits plan sponsors as well as participants.
Making Roth 401k contributions appears to be better for everyone!
A few changes can make your good 401k plan into a great one. To help your 401k plan achieve greatness, consider making the following 401k plan improvements this year.
401k plan participants often wonder whether they should contribute their hard-earned money to a Roth 401k or a pre-tax 401k account. Depending on their age and tax bracket, the answer may be both!
Recently ThinkAdvisor shared some scary retirement statistics from a report by the National Association of Government Defined Contribution Administrators, Inc. (NAGDCA). These retirement statistics paint an alarming picture of most American’s state of retirement readiness.