It’s hard to believe, but the fourth quarter of 2018 has already arrived. And as year-end approaches, many business owners begin scrambling to find ways to maximize potential tax benefits for the year. Perhaps your financial advisor suggested saving any big company purchases for the end of the year in a last-ditch effort to lower your profit margins and drop your business into a lower tax bracket. Or maybe you instead decided to ramp up your employees’ Christmas bonuses right at year-end to lower your tax rate. But if you’re looking for the best way to maximize your business’s tax benefits for the year, while also making a tangible difference in your employees’ financial future, starting a 401(k) or similar retirement plan should be front and center in your mind.
Life has a bad habit of getting in the way of our carefully laid-out plans, no matter how hard we work to achieve a financially-secure retirement. And as traditional pension offerings have declined in popularity, more and more workers have found themselves struggling just to pay the bills in retirement. Clearly, our workforce needs a little bit of help—and states are stepping in.
The old adage says that only two things in life are guaranteed: death and taxes. While we may not have much control over the first of life’s guarantees, we can aim to fully understand and be prepared for the second, right? Unfortunately, this isn’t always the case; tax time often leaves people feeling overwhelmed and unclear. Things can get especially confusing when you receive a tax form you’ve never seen before or don’t know what to do with—like Form 1099-R.
Unfortunately, too few savers are aware that there are rules, penalties, and potential tax implications for taking money out of their 401(k) plan before they reach retirement age. A 401(k) distribution can come in many shapes and forms—so it’s important that you understand what your options are if you need to access those funds.
By the end of this year, most small employers in the state of Illinois will be required to offer employees a retirement savings program to save in—an attempt from the state government to protect its citizenry from reaching retirement age without having adequate savings to get them to and through retirement. But is Illinois Secure Choice actually mandatory, and if so, how will small employers potentially be affected?
Picture this: you receive an email from someone you work with that you know and trust, maybe an executive of your company or perhaps someone in the finance department, outlining an urgent issue that needs to be solved. The email instructs you to open an attached document for further details, and since nothing really seems to be out of the norm, you go ahead and open the attachment. Unbeknownst to you, a hacker may have just infiltrated your computer.
Oregon has introduced legislation to help close the coverage gap among retirement savers, mandating that small businesses and large business alike provide employees with retirement plan to save in. Employers who don’t already offer a retirement plan to employees will be required to either adopt a qualified plan or register to offer Oregon’s new state-run retirement program, OregonSaves.
Determining the right type of 401(k) plan for your small business can be challenging. With so many options and so much to consider, one key decision you may have to make is whether to go with a traditional plan design or a safe harbor plan design. This is a vitally important decision, as your choice can have long-term implications for both your employees and your company.
Thanks to the new Tax Reform, small business owners now have the chance to take advantage of a new tax benefit: the Qualified Business Income (QBI) deduction. But how does the QBI deduction affect 401(k) and other retirement savings vehicles, and which makes the most sense for owner-only businesses?
Financial Literacy Month reminds us of the importance of overall financial literacy, helping Americans build and maintain healthy financial habits. And whether you’re a seasoned pro or you’re just getting into the financial literacy game, there are a few overall wellness basics you’ll want to know—starting with budgeting, credit scores, and saving and investing.
401(k) plans allow workers to save more for retirement than any other retirement savings vehicle, and the opportunity to reach maximum retirement readiness is exciting, no? But the inner workings of 401(k) plans and the retirement industry in general are complicated, and a little bit of guidance is always needed when so many rules and regulations are put in place. So without further ado, here are five things you need to know if you’re saving in a 401(k) plan for the first time.
Profit sharing seems to become more and more buzzworthy around this time every year—after the fiscal year has concluded but before businesses are required to file their corporate taxes. But profit sharing plans are subject to legal regulations, so before deciding whether to offer profit sharing this year, small business owners will want to make sure they are familiar with the ins and outs of 401(k) profit sharing.
Saving more money is a top priority for millions of Americans, but getting ahead financially isn’t easy by any means. The sheer amount of information out there about personal finance can be overwhelming, and it’s easy to get lost navigating all of the various areas of personal finance. This America Saves Week, we’re cutting through the clutter to deliver five easy, actionable tips that can help you save more money in 2019.
The retirement industry has seen significant changes in recent years—and as the industry continues to change, shouldn’t the way we talk to clients about retirement planning and preparation change, too? How can we change the conversation to get clients and plan participants on track to reach their retirement goals? Enter CoPilot.
Picture this: you’ve left your office for the last time. You’ve spent the better part of your career preparing for this exact moment and have finally reached retirement bliss. Now imagine those magnificent golden years being ripped away from you—and in their place, many more years spent in the workforce. This nightmare is a reality for many American workers, due in part to poor planning, inadequate preparation, and insufficient financial education. And one of the most commonly misunderstood retirement basics? What really happens when you take an early withdrawal from your 401(k) plan.
Each New Year signifies new beginnings—a chance to start over and set yourself up for 365 days of success. We often use New Year’s as an opportunity to introduce better behaviors within our daily lives, setting resolutions to go to the gym more, build better interpersonal relationships, eat healthier, see our family more, and the like. But in 2019, there’s a new trend emerging among the most common New Year’s resolutions. Almost 9 in 10 Americans are planning on making some sort of financial resolution in the upcoming New Year.