PODCAST >> Grow Your Business and Grow Your Wealth

Grow Your Business and Grow Your Wealth

Click here to listen episode 188 of Gary Heldt's podcast, Grow Your Business and Grow Your Wealth, featuring BidMoni's CEO, Stephen Daigle. 

 

Key Takeaways:

🚀 Embracing Technology for Simplification: Technology is a game-changer, making retirement planning more accessible and less intimidating for business owners.

🛡️ The Power of Fiduciary Shields: Ensuring compliance and transparency, fiduciary shields are essential for protecting business owners and their employees.

💰 Leveraging Secure 2.0 for Tax Advantages: Discover how Secure 2.0 legislation can provide substantial tax credits, making retirement benefits more attainable for small businesses.

🌱 Strategic Cash Management: Effective cash management is pivotal for daily operations and a cornerstone of a robust retirement strategy.

 

What or Who is a 401k Plan Sponsor?

Plan Sponsor

A 401k plan sponsor is an employer or organization that establishes and maintains a 401k retirement plan for the benefit of its employees or members. The plan sponsor is responsible for selecting the investment options available in the plan, determining the plan's administrative and operational features, and ensuring that the plan complies with applicable laws and regulations.

The plan sponsor may also hire third-party service providers, such as recordkeepers and investment advisors, to assist with the administration and management of the plan. However, the plan sponsor retains ultimate responsibility for the plan's operation and fiduciary duties.

Plan sponsors have a legal obligation to act in the best interests of plan participants and beneficiaries and to fulfill their fiduciary responsibilities under the Employee Retirement Income Security Act (ERISA). This includes ensuring that fees and expenses associated with the plan are reasonable and disclosing all relevant information to plan participants.

Can I Make Roth Contributions in a 401k Plan?

Can I Make Roth Contributions in a 401k Plan?

Yes, some 401k plans offer a Roth option that allows you to make after-tax contributions. These contributions are then invested and grow tax-free, and you won't have to pay taxes on the money when you withdraw it during retirement.

However, not all 401k plans offer a Roth option, so you should check with your plan administrator to see if it's available. Also, there are limits to how much you can contribute to a Roth 401k each year, just like with traditional 401k contributions. In 2023, the annual contribution limit for both traditional and Roth 401k contributions is $22,500, with an additional catch-up contribution of $7,500 for those age 50 and older.

What is a Safe Harbor Plan?

 

Safe Harbor Plan

A safe harbor plan is a type of retirement plan designed to help employers comply with certain non-discrimination requirements set by the IRS. These requirements prohibit highly compensated employees (HCEs) from receiving disproportionate benefits or contributions compared to non-highly compensated employees (NHCEs) in a 401k or other qualified retirement plan.

By adopting a safe harbor plan, an employer can automatically satisfy certain non-discrimination testing requirements and avoid costly penalties that can arise from failing to meet these requirements. Safe harbor plans offer several benefits, including:

  1. Enhanced contribution limits for HCEs: In a safe harbor plan, HCEs can make larger contributions to their retirement accounts without worrying about violating non-discrimination rules.

  2. Reduced administrative burden: Safe harbor plans typically have fewer administrative requirements than traditional 401k plans, which can save employers time and money.

  3. Greater employee satisfaction: Safe harbor plans can be designed to provide generous matching contributions, which can help attract and retain talented employees.

Overall, safe harbor plans can be an effective way for employers to offer a valuable retirement benefit to their employees while minimizing their own administrative burden and legal risk.

State Retirement Plan Mandates: What States Have Them and When Do They Take Effect?

State Retirement Plan Mandates: What States Have Them and When Do They Take Effect?

Webinar Replay: BidMoni Small Market Solution

BidMoni Small Market Solution Webinar Replay

 

BidMoni has partnered with five national Recordkeeping firms and one national TPA firm to create the first ever fully digital 401K marketplace.  We have worked with advisors across the country to remove the friction points in selling smaller plans, including:

  • Identifying opportunities
  • Generating proposals
  • Running plan comparisons
  • Plan onboarding