The key intent of this strategy is to allow freedom to and reward long-term employees who have accumulated the skills the company needs to compete.
Tag "retirement"
So what if a few very high net savers end up with bigger retirement plans? Good for them. The point is to make it easier for more people to save more.
Well, if we’re thinking outside the box, why not go big? It turns out, retirement planning isn’t just about accumulating sources of future funds.
Here’s the irony of the tax saving incentive. If it’s wildly successful and leads to very large retirement accounts, the required minimum distributions at retirement may place the now retired employee in a higher tax bracket than the one experienced while working.
Retirement plan sponsors may also benefit from teaching entrepreneurial skills to their employees. Such lessons could also provide employees with opportunities to begin to practice what they learned directly for their current employer.
From an employer perspective, it’s not just about the 401k plan. There are greater realities that must be dealt with. Different firms, however, will find distinct—and differing—realities.
It’s critical that plan sponsors consult with compliance professionals before adding the Deemed IRA feature.
The story arc of the 401k mimics that of software. Each release adds to and builds on features and benefits over and above those of previous releases.
We asked retirement advisors from across the country whether they felt SECURE 2.0 had been over-hyped or represented a game changer. Here’s what they said on a few key issues.
Unlike previous definitions, this version takes a definitive step towards allowing plan sponsors to forgo traditional financial measures. Rather than relying on extensive academic studies, this new Rule represents a certain leap of faith.
