Defined Benefit Plans Are Not Extinct

Posted on Mar 7, 2023

While it’s true that many private companies have switched from defined benefit plans to defined contribution plans (such as 401(k) plans), it’s worth considering whether a defined benefit plan would benefit you as a business owner and help you meet your tax and savings goals. Generally, the employer makes the most contributions in a defined benefit plan, although sometimes voluntary contributions by employees are permitted or required.

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Secure Act 2.0: What You Need to Know

Posted on Mar 2, 2023

Learn about the key provisions of the SECURE Act 2.0, a new legislation that aims to expand access to retirement savings and simplify plan administration for employers. Discover how TPS Group's mission aligns with this legislation to promote a secure financial future for all.

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What Employers Should Know About Safe Harbor 401(k) Plans

Posted on Feb 13, 2023

This article explains the difference between a traditional 401(k) and a safe harbor 401(k) plan. A safe harbor 401(k) plan offers benefits for business owners and employees as it is not subject to annual nondiscrimination testing and employees are immediately vested when employer contributions are made. Employers must make mandatory contributions and there are different types of safe harbor plans to choose from.

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Auto-Enrollment and Auto-Escalation in 401(k) Plans: How to Optimize Retirement Outcomes for Your Employees

Posted on Jan 18, 2023

Auto-enrollment and auto-escalation features in 401(k) plans can greatly benefit employees by encouraging them to save for retirement at an early stage and at a high enough rate to meet their future income needs. However, these features should be reviewed to ensure they are optimized and not just offered to new employees, as existing workers can also benefit from them.

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The Pros and Cons of 401(k) Loans and Hardship Withdrawals

Posted on Jan 9, 2023

Employers may allow employees to take loans or hardship withdrawals from their 401(k) accounts, but they come with risks and potential tax consequences. Hardship withdrawals can reduce an employee's account balance, and loans may incur taxes and penalties if not repaid. Employers should carefully weigh the benefits and risks before offering these options to employees.

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Is a Roth 401(k) Right for You?

Posted on Dec 6, 2022

The pre-tax advantages of a 401(k) plan make it a very effective way for employees to save for retirement and lower their tax burden. Since taxes on a 401(k) are deferred until funds are actually withdrawn, the premise is that in retirement, the individual will be in a lower tax bracket than while employed.

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Is Your Retirement Plan Still Aligned with Your Business Needs?

Posted on Nov 21, 2022

With 2023 right on the horizon, now is a good time for employers to review whether their retirement plans are still in alignment with their business needs and goals.

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Understanding ERISA Fidelity Bonds and Fiduciary Liability Insurance

Posted on Oct 13, 2022

Fidelity bonds are an ERISA requirement for people who manage plan funds and other property. These bonds protect the plan from losses due to fraud or dishonesty, which may include theft, embezzlement, forgery, misappropriation, and other acts.

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Defined Benefit Plans are Alive and Well

Posted on Sep 26, 2022

You’ve likely heard about a decline in the number of Defined Benefit plans. But the reality is a DB plan is still a great tax and retirement savings vehicle that can produce superior retirement outcomes for the right client. Are you one?

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Fiduciary Considerations in a 401(k) Plan

Posted on Sep 12, 2022

It’s important for employers to understand and meet their 401(k) fiduciary responsibilities and comply with ERISA rules to ensure the proper management of their workers’ and retirees’ plan assets. A 401(k) plan must have at least one named fiduciary, either a person or entity, that has control over the plan’s operation.

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