Articles

Posted on Aug 25, 2023

The SECURE 2.0 Act, implemented in December 2022, introduces changes to retirement savings catch-up contributions, allowing Americans over 50 to contribute more to their 401(k) accounts, with special provisions in 2024 for high-earners to make Roth contributions and a new contribution limit in 2025 for those aged 60-63. These catch-up contributions aim to help older Americans bridge the gap in their retirement savings.

Posted on Jul 21, 2023

Saving for retirement is not just a prudent financial choice but an essential one for most Americans. Social Security is a safety net but is not meant to be the sole support for people when they retire, and the monthly benefits may not be enough to maintain a desired standard of living. Personal savings, investments, and employer-sponsored retirement plans such as 401(k)s ensure a more secure and comfortable retirement.

Posted on Jun 21, 2023

This article emphasizes the importance of retirement savings and suggests methods to augment them, such as creating a realistic budget, automating contributions from paychecks, and taking full advantage of employer-matching contributions. It also advises individuals to make small financial changes and take advantage of the power of compound interest to secure a comfortable retirement.

Posted on May 10, 2023

Money is a leading cause of stress for many Americans, even those considered wealthy. Research shows that people worry about retirement savings, college tuition expenses, student loans, health care costs, credit card debt, and the ability to cover the monthly rent or mortgage payment. Employers are recognizing that these financial stressors can have a negative impact on employee productivity and overall well-being.

Posted on Apr 16, 2023

Learn the benefits of an unbundled retirement plan over a bundled plan. Unbundled plans offer tailored services, open architecture for investment options, and personalized customer service, whereas bundled plans are standardized with limited investment options. Employers looking for flexibility, choice, quality, and customer service should consider an unbundled retirement plan.

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.

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.

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.

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.

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.