How Companies Can Ensure Their Plans Align with Employee Goals-And How RWM Financial Group Can Help

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Alright, let’s cut to the chase—everyone wants to feel like they’re part of something meaningful, right? For companies, aligning their big plans with what their employees are aiming for isn’t just a nice-to-have; it’s a must if they want everyone on board, motivated, and ready to go the extra mile (without a grumble). Here’s a laid-back take on how companies can connect their big dreams with their people’s personal goals—and how RWM Financial Group is here to support you, from financial education to setting up 401(k)s that bring everyone closer to their goals.

Keep It Real with Open Communication

Start with good ol’ fashioned honest talk. Regular check-ins, genuine chats about ambitions, and the kind of culture where everyone can throw their ideas on the table make all the difference. Leaders, don’t just nod along—ask employees about what lights their fire! Whether it’s career growth or financial stability, open conversations lay the groundwork for connecting individual goals with company plans. Here at RWM Financial Group, we help companies communicate the importance of financial wellness by offering tailored workshops and one-on-one sessions on topics like retirement savings and 401(k) options.

Get Clear on Shared Goals

If the company’s goals are a mystery, how’s anyone supposed to get excited about them? Lay it out clearly—where’s the company headed, and why? When everyone knows the end game, it’s way easier to see how their own goals fit in. Clear goals aren’t just for big shots at the top; they’re for everyone, so make them simple, relevant, and inspiring. For instance, sharing the company’s commitment to providing a top-notch 401(k) plan can help employees see how their long-term financial goals line up with the organization’s priorities. With RWM Financial Group’s support, companies can set up retirement plans that serve everyone, from seasoned execs to the newest hires.

Give Development a Front Seat

If you want people to stick around and feel pumped, invest in them. We know that financial security is high on the list for most employees, which is why we offer services that encourage financial growth—like educating employees about maximizing their 401(k) contributions or saving for personal goals. These resources can make a big difference in how people feel about their jobs. From small business teams to larger corporations, RWM Financial Group provides tailored support for your unique workforce’s financial future.

Use a Goal-Setting Game Plan

Think frameworks like OKRs or SMART goals. Yeah, they sound a little corporate, but bear with us. These systems give structure to goal-setting and make it easy to see who’s crushing it. Plus, they give everyone a chance to brag (or reflect) on their progress. And just like with career goals, financial goals benefit from structure. We at RWM can help you create a structured 401(k) plan for your employees, enabling them to set, track, and adjust their retirement goals as they grow with your company.

Roll with the Punches

Employees’ goals aren’t carved in stone, and that’s a good thing. New skills, new passions, and sometimes just life mean goals change. Be open to mixing things up—whether it’s remote work, new projects, or different roles. A little flexibility keeps things fresh and lets people feel like they’re growing with the company, not just for it. RWM’s flexible approach to financial planning works the same way: we’re here to make sure your employees’ financial plans grow with them, whether that means updating 401(k) offerings, adjusting contributions, or addressing new financial education needs.

Show Some Love for a Job Well Done

When employees hit a milestone or crush a goal that matters to them (and the company), throw a little celebration! Public recognition, a bonus, or even a well-timed “Thank you!” can work wonders. Financial rewards and benefits—like a robust 401(k) match—are a big part of showing employees they’re valued. At RWM, we can help you set up a 401(k) plan that gives employees a financial boost as they work toward their personal and professional milestones.

Embrace Feedback and Keep It Moving

The road to alignment is paved with feedback—so make it a two-way street. Regular check-ins, team debriefs, and the occasional survey help everyone stay connected and keep strategies relevant. It’s like tuning a car; little tweaks here and there make sure it’s still running smoothly, no matter how long the journey. RWM Financial Group offers feedback loops for your financial plans, too, helping employees and employers review, tweak, and optimize 401(k) plans and other financial resources to keep everyone on track.

Share the Big Picture (Because It Matters!)

Employees don’t just want to clock in and out; they want to see the impact of their work. Tie their goals and contributions back to the company’s purpose—whether it’s creating the next great product, helping customers in meaningful ways, or just making the world a better place. When people see the bigger picture, it makes the day-to-day a whole lot more satisfying. At RWM Financial Group, we believe in building financial stability and growth for your team, which ultimately feeds into a stronger, more motivated company culture. With the right financial tools, like a well-managed 401(k) plan, employees feel more secure about their future—allowing them to focus on their work with confidence.

Aligning company plans with employee goals takes some effort, but the payoff? Worth every bit. By keeping communication open, investing in growth, and celebrating achievements, companies can build a workplace that’s fulfilling for employees and productive for the business. And RWM Financial Group is here to support every step—from helping employees get the most out of their 401(k)s to providing financial education for small businesses and large corporations alike. When everyone’s in sync, working together becomes a lot more fun, and success turns into a team sport.

This information was developed as a general guide to educate plan sponsors, but is not intended as authoritative guidance or tax or legal advice. Each plan has unique requirements, and you should consult your attorney or tax advisor for guidance on your specific situation. In no way does advisor assure that, by using the information provided, plan sponsor will be in compliance with ERISA regulations.

End of Year Retirement Plan Checklist: October -December Compliance Guide

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As we approach the final quarter of the year, it’s crucial to stay on top of important retirement plan deadlines to ensure compliance with the U.S. Department of Labor and IRS regulations. From timely deposits to participant notices, adhering to these deadlines will help keep your plan in good standing. Here’s a month-by-month guide to help you navigate the final months of 2024.

OCTOBER: Payroll and Enrollment Checks

Audit Payroll and Plan Deposits

Ensure that all third-quarter payrolls and plan deposit dates comply with the U.S. Department of Labor’s rules. This means verifying the timely deposit of participant contributions and loan repayments to avoid penalties.

Enrollment Follow-Up

Employees who became eligible for your retirement plan between July 1 and September 30 should have received and returned their enrollment forms. If any forms are missing, this is the time to follow up to avoid compliance issues.

Safe Harbor Notices

If you offer a calendar-year safe harbor plan, you must issue the required notices to employees during October or November. These notices are critical as they must be provided within 30–90 days of the beginning of the plan year. Additionally, if your plan includes features like an Eligible Automatic Contribution Agreement (EACA), Qualified Automatic Contribution Agreement (QACA), or Qualified Default Investment Alternative (QDIA), make sure the appropriate notices are distributed during this time.

NOVEMBER: Preparation and Communication

Plan Announcements

Start preparing announcements to educate employees on the advantages of your retirement plan and any upcoming changes that will take effect in January. Communication is key to ensuring employees understand and appreciate their benefits.

Encourage Address Updates

With Form 1099-R for reportable transactions set to be mailed in January, now is a good time to run a campaign encouraging participants to update their mailing addresses to avoid missing documents.

Update Enrollment Materials

Verify that all enrollment materials, fund prospectuses, and other plan-related information provided to employees are current. These materials should reflect any changes in the plan and align with regulatory requirements.

Quarterly Statements

Within 45 days of the end of the last quarter, distribute the quarterly benefit and disclosure statements to plan participants. This should include a detailed breakdown of plan fees and expenses charged to individual accounts during the prior quarter.

Annual Plan Notices

Prepare and distribute any necessary annual plan notices, including 401(k) safe harbor notices, QDIA annual notices, and automatic enrollment/default investment notices. These notices must be sent at least 30 days before the end of the plan year.

DECEMBER: Year-End Preparations

Year-End Compliance Testing

Begin preparing to send year-end payroll and updated census data to the plan’s recordkeeper in January for year-end compliance testing. This is essential for calendar-year plans and ensures that your plan is in line with regulatory testing requirements.

Distribution Options for Terminated Participants

Verify that participants who left the company during the second half of the year have selected a distribution option for their account balance and returned the necessary forms.

Plan Operations Review

Conduct a thorough review of plan operations to identify any possible Employee Retirement Income Security Act (ERISA) or tax-qualification violations. If any issues are discovered, it might be necessary to use an IRS or U.S. Department of Labor self-correction program to remedy them before they become a larger issue.

By following these monthly action items, you can ensure that your retirement plan remains compliant and that participants are well-informed and supported. Staying proactive in the final quarter helps avoid last-minute stress and ensures a smooth transition into the new year.

Unveiling the Hidden Pitfalls of Retirement Planning: A Mission for Financial Maverick

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In the high-stakes world of retirement planning, navigating hidden fees and complex investment structures can feel like flying a jet through a storm without a radar. Much like the iconic pilots of Top Gun, who train to be the best in high-pressure situations, understanding and mastering your financial landscape is a mission that requires precision, skill, and the right team by your side. At the 28th Annual Conference in Durant, Oklahoma, RWM Financial Group took the stage—aviators on, Top Gun music playing—to guide attendees through the hidden pitfalls of retirement planning in their presentation, “Vanishing Assets: The Hidden Pitfalls of Retirement Planning.

Understanding the Roles: Financial Advisor, TPA, and Custodian – Your Financial Wingmen

Just as Maverick relies on his wingmen to execute a flawless mission, your retirement plan relies on key players: the Financial Advisor, Third-Party Administrator (TPA), and Custodian. These roles work together like a well-coordinated flight team. The Financial Advisor, your “Top Gun” pilot, leads the charge by guiding investment decisions, educating participants, and ensuring regulatory compliance. The TPA handles the operational logistics, while the Custodian safeguards your assets. Each plays a critical role in ensuring your retirement mission succeeds without a crash landing.

Hidden Fees: The Financial MiG Threats

In the same way Maverick faces unexpected threats in the sky, hidden fees are the silent MiGs of your retirement plan, capable of chipping away at your wealth without warning. RWM Financial Group emphasized that these hidden costs—whether embedded within investment products, commissions, or referral fees—can undermine your financial altitude. To stay in control, it’s crucial to demand transparency and keep your financial radar sharp, ensuring that every fee is disclosed and accounted for.

Best Practices: Your Flight Manual for a Successful Mission

Just as Top Gun pilots follow their flight manuals to complete each mission, RWM Financial Group recommends following best practices to ensure your retirement plan stays on course. Establishing an Investment Policy Statement, reviewing fee structures regularly, and ensuring that fiduciary duties are met are essential steps in your financial playbook. Like any good pilot, you need to know your instruments—monitor your fees, evaluate service quality, and always be prepared for course corrections when necessary.

Key Insights: Lessons from the Top Gun School of Retirement Planning

The conference highlighted that Tribal communities, much like elite pilots, face unique challenges and need specialized strategies to succeed. RWM Financial Group encourages building a strong support network—your own “squadron”—that understands Tribal needs and values. By tailoring programs to serve not just the current generation but the next seven, you create a lasting legacy, much like how the Top Gun academy molds future leaders.

Actionable Takeaways: Execute Your Mission with Confidence

As Top Gun teaches, executing your mission requires preparation, precision, and the ability to adapt under pressure. The RWM team’s actionable takeaways—such as conducting fee comparisons, ensuring fee transparency, and engaging specialized advisors—are designed to keep your retirement plan flying high. By reclaiming hidden assets and refining your strategies, you can lead your financial squadron to victory.

Flying through the complexities of retirement planning doesn’t have to be a solo mission. With the right team and a keen understanding of the landscape, you can navigate past hidden threats and secure a prosperous future. Just like Maverick and his wingmen, RWM Financial Group is here to guide you through the turbulence, ensuring your retirement mission ends with a successful landing.

Ready to take command of your retirement planning? Our team of financial “Top Guns” is ready to help you soar toward your financial goals with precision and confidence.

Understanding the Different Types of 401(k) Plans for Businesses

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A guide from RWM Financial Group

As a small business owner, providing a retirement plan for your employees not only helps attract and retain talent but also offers significant tax advantages for your business. However, navigating the variety of 401(k) plans can be daunting. This guide will help you understand the differences between traditional and Roth 401(k) plans, as well as other retirement savings options, so you can choose the best plan for your business and employees.

Traditional vs. Roth 401(k) Plans

Both traditional and Roth 401(k) plans allow employees to save for retirement, but they differ in terms of tax treatment:

Traditional 401(k):

  • Tax-Deferred Contributions: Employee contributions are made pre-tax, reducing their taxable income for the year.
  • Taxable Withdrawals: Distributions in retirement are taxed as ordinary income.
  • Employer Contributions: Matching contributions are also tax-deferred, providing immediate tax benefits to the business.

Roth 401(k):

  • Post-Tax Contributions: Contributions are made with after-tax dollars, meaning there’s no immediate tax break.
  • Tax-Free Withdrawals: Qualified distributions in retirement, including earnings, are tax-free, offering potential long-term tax savings.
  • Flexibility for Higher Earners: Unlike Roth IRAs, Roth 401(k)s have no income limits, making them accessible to all employees regardless of their salary.

Both plans allow for high annual contribution limits and employer matching, which can enhance the retirement savings of your employees.

Other Retirement Savings Options

Aside from traditional and Roth 401(k)s, small businesses have other retirement plan options:

SIMPLE 401(k):

  • Designed for businesses with 100 or fewer employees.
  • Offers a simpler, less costly alternative with fewer compliance requirements.
  • Employer contributions are mandatory, but they can be structured as either a matching contribution or a non-elective contribution.

Safe Harbor 401(k):

  • Helps employers pass non-discrimination tests by making mandatory contributions to employees’ accounts.
  • Contributions are immediately vested, which can be a strong incentive for employee retention.
  • Can be paired with traditional or Roth 401(k) options.

SEP IRA and SIMPLE IRA:

  • Easier to set up and maintain, with lower administrative costs compared to 401(k) plans.
  • Ideal for very small businesses or sole proprietors.
  • SEP IRAs are funded entirely by employer contributions, while SIMPLE IRAs require both employer and employee contributions.

Choosing the Right Plan for Your Business and Employees

Selecting the best retirement plan involves understanding your business goals, budget, and the needs of your employees. Here are some key considerations:

Business Size and Resources:

  • For small businesses with limited resources, SIMPLE 401(k) or SEP IRA plans may offer a good balance of benefits and ease of administration.
  • Larger small businesses looking to maximize contributions and offer robust benefits may prefer traditional or Roth 401(k) plans.

Employee Preferences:

  • Understanding your employees’ preferences regarding tax treatment can guide whether a traditional or Roth 401(k) is more attractive.
  • Offering a mix of plans can cater to a diverse workforce, enhancing overall satisfaction and participation rates.

Cost and Compliance:

  • Consider the administrative costs and compliance requirements of each plan. For instance, 401(k) plans, while more complex, offer higher contribution limits and potential for employer matching.
  • Safe Harbor 401(k)s can alleviate some compliance burdens but require mandatory contributions.

Long-Term Goals:

  • If long-term tax savings for employees are a priority, a Roth 401(k) may be appealing.
  • For businesses looking to maximize immediate tax deductions, traditional 401(k) contributions provide a clear benefit.

RWM Financial Group is dedicated to helping businesses and individuals achieve financial security through tailored retirement planning and investment solutions. Contact us today to learn more about how we can support your financial goals.

Interested in Setting Up a 401(k) Plan for Your Business?

Setting up a 401k retirement savings plan for your business is a great way to save money on taxes and provide your employees with a valuable benefit. 

Consider contacting our team for assistance. At RWM, we provide a clear path to secure retirement for employers and employees of successful businesses.

This information was developed as a general guide to educate plan sponsors, but is not intended as authoritative guidance or tax or legal advice. Each plan has unique requirements, and you should consult your attorney or tax advisor for guidance on your specific situation. In no way does advisor assure that, by using the information provided, plan sponsor will be in compliance with ERISA regulations.

Fiduciary Tips from RWM Financial Group

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In the world of financial advice, discovering reliable guidance can seem as challenging as finding a needle in a haystack. Amidst a myriad of conflicting opinions and concealed motivations, individuals often feel overwhelmed and uncertain. However, there’s a beacon of integrity in this chaos: fiduciary responsibility.

At RWM Financial Group, we hold ourselves to the highest standard of fiduciary duty, prioritizing the interests of our clients above all else. We believe that financial success is built on a foundation of trust, transparency, and expert guidance. As part of our commitment to empowering individuals with the knowledge they need to make informed decisions, we’re excited to share some valuable fiduciary tips to help you navigate the complexities of personal finance.

Tip 1: Choose Your Advisor Wisely

When it comes to selecting a financial advisor, not all are created equal. It’s crucial to choose an advisor who is held to a fiduciary standard, meaning they are legally obligated to always act in your best interests. This ensures that their advice is unbiased and free from conflicts of interest. Before entrusting someone with your financial future, be sure to ask if they are a fiduciary and inquire about their qualifications, experience, and approach to financial planning.

Tip 2: Understand Fees and Compensation Structures

Transparent fee structures are a hallmark of fiduciary advisors. Before engaging the services of a financial advisor, make sure you clearly understand how they are compensated. Fiduciaries typically charge fees based on a percentage of assets under management or a flat fee for financial planning services. Beware of advisors who earn commissions or receive kickbacks for selling specific products, as these incentives may influence their recommendations.

Tip 3: Establish Clear Goals and Objectives

Successful financial planning begins with a clear understanding of your goals and objectives. Whether you’re saving for retirement, planning for your children’s education, or building wealth for the future, articulating your priorities is essential. A fiduciary advisor can help you define your goals, develop a customized financial plan, and provide ongoing guidance to keep you on track.

Tip 4: Diversify Your Investments

Diversification is a cornerstone of sound investment strategy. By spreading your investments across a variety of asset classes, sectors, and geographic regions, you can help mitigate risk and improve your chances of achieving long-term returns. A fiduciary advisor can help you construct a diversified portfolio tailored to your risk tolerance, time horizon, and financial goals.

Tip 5: Stay Informed and Engaged

Financial planning is not a one-and-done activity but an ongoing process requiring regular review and adjustment. Stay informed about changes in the market, tax laws, and economic trends that may impact your financial situation. Schedule regular check-ins with your fiduciary advisor to review your progress, reassess your goals, and make any necessary course corrections.

Conclusion

Navigating the complexities of personal finance can be daunting, but with the guidance of a valued fiduciary advisor, it’s entirely achievable. At RWM Financial Group, we’re dedicated to helping our clients achieve their financial goals with integrity, transparency, and expertise. By following these fiduciary tips and partnering with a fiduciary advisor, you can take control of your financial future and unlock new opportunities for success. Contact us today to learn more about how we can help you on your journey to economic well-being.

This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

Writing Your Company’s Retirement Plan Goals

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Guess what? Your company’s retirement plan is like a superhero cape for your organization’s goals. But hold up, before you dive into the superhero action, let’s figure out what you really want to achieve.

So, you know how employers sometimes feel a bit lost when setting up those retirement plan goals? Well, no worries! We’re here to change that and lead your team on a path towards a retirement that screams confidence.

Ready for some questions?

What’s the grand goal of your company’s retirement plan?

Your company’s retirement plan isn’t just a financial tool; it’s the cornerstone of your employees’ future. Are you aiming for financial security, early retirement options, or perhaps a plan that fosters a strong company culture? Clarifying these goals ensures your plan aligns with your company’s vision and the well-being of your team.

How are you handling those fiduciary responsibilities?

Fiduciary responsibilities aren’t just a checkbox; they’re a commitment to your employees’ trust. Beyond legal obligations, it’s about ensuring your investment decisions, communication strategies, and plan management prioritize the best interests of your workforce. Regular assessments guarantee you’re not just meeting requirements but exceeding them.

Are your plan fees playing fair?

Uncover the true cost of your retirement plan. Beyond the surface, scrutinize fees, and explore whether there are more cost-effective options. This not only saves money for both the company and employees but also enhances the overall value of your retirement offering.

And hey, what about the latest legislation – how’s that affecting your retirement game?

The retirement landscape is ever-evolving, influenced by legislative changes. Stay ahead by understanding how new laws impact your plan. This knowledge not only ensures compliance but opens opportunities to optimize your strategy and keep your plan in sync with the latest regulations.

Any room for improvements in the plan design?

Don’t settle for the status quo. Explore innovative plan designs that could potentially enhance outcomes for your employees. From investment options to contribution structures, a proactive approach to design ensures your plan evolves with the needs of your workforce, fostering financial wellness.

Conclusion: Don’t let your company’s retirement plan wander.

Now armed with a more profound understanding of your goals, fiduciary responsibilities, fees, legislative impacts, and potential design enhancements, it’s time to take charge. Set a clear direction, map out a strategy, and ensure your company’s retirement plan isn’t just a benefit but a dynamic force propelling your team toward a secure and confident future.

And guess what? We’ve got your back every step of the way. Reach out to us today, and let’s give your retirement plan a well-deserved checkup. Your company’s retirement plan isn’t just a plan-it’s a journey, and RWM Financial Group is here to make it a remarkable one. Contact RWM Financial Group

This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

2024 Compliance Calendar

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Stay ahead of deadlines with help from our annual Compliance Calendar. If you have any questions about deadlines or the information requested, please get in touch with us to review today!

Download the 2024 Compliance Calendar

RWM Financial Group is committed to providing solutions and support for yours and your employees’ retirement. Here’s a handy checklist to keep your retirement plan running smoothly:

  • Review plan documents: Ensure all information is up to date and compliant with current regulations. Don’t let any outdated policies slip through the cracks!

  • Communicate with participants: Engage your employees by sharing important updates, educational resources, and reminders about upcoming deadlines. Let’s keep them informed and motivated!

  • Evaluate investment options: Take a close look at your plan’s investment lineup. Are there any adjustments needed to align with participants’ goals? Let’s ensure a diverse and appealing selection.

  • Assess plan fees: Scrutinize the fees associated with your plan. Can any be renegotiated or reduced? It’s time to optimize your plan’s cost-effectiveness!

  • Conduct plan audits: Regular audits are crucial to maintaining compliance and identifying any potential issues. Stay ahead of the game and ensure your plan is in tip-top shape.

  • Enhance financial education: Empower your employees with financial literacy tools and resources. Help them make informed decisions for a secure retirement future.

RWM Financial Group takes pride in our roles as your Plan Advisors; we are dedicated to you, your plan, and your employees. We are here to support you every step of the way.

Securities and advisory services offered through LPL Financial, a registered investment advisor, member FINRA/SIPC.

This information was developed as a general guide to educate plan sponsors and is not intended as authoritative guidance or tax/legal advice. Each plan has unique requirements, and you should consult your attorney or tax advisor for guidance on your specific situation.

Checking Under the Hood

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How to Perform a Six-Step Maintenance Checkup on Your Retirement Plan

Does your retirement plan make curious noises when it travels over a few market bumps? Are you getting enough mileage out of your savings rate? Is your diversification strategy as energy-efficient as it should be? Performing annual maintenance on your 401(k) can help make the road to retirement as smooth as possible. Here’s a six-step checkup that can be performed in just a couple of hours over a weekend.

STEP 1: Review Your Goals and Plans

Each year you should ask yourself if you’re on track to reach your retirement goals. Part of that process is imagining (in detail) what you would like to be doing during that stage of your life. Are your goals and plans realistic? Has your thinking changed at all — and why? The American Savings Education Council (www.asec.org) has a wealth of resources to help you review and adjust your goals and plans as needed, including their “Savings Goal Calculator” and other tools that can help you determine how much money you need to save for retirement.

STEP 2: Maximize Your Contributions

If you’re not contributing the maximum possible to your plan, increase your contributions by at least 1% each year, with a general goal of eventually reaching around 15% of your salary. Try to contribute at least enough right now to get the full employer match (if offered). It’s one thing to read this and say to yourself “yes, I can definitely increase by 1%.” But it’s only going to happen if you stop everything you’re doing right now, log into your account on your recordkeeper’s website and make the change!

STEP 3: Review Your Investment Strategy

Given all the market turmoil over the past few years, including inflation and economic events beyond our control, it’s smart to ask yourself each year if your asset allocation is still appropriate. Or, if your tolerance for risk has fundamentally changed. Your plan recordkeeper likely has a risk tolerance assessment exercise you can access on their website. In addition, consider working with a financial advisor to help you determine if your investment strategy is in sync with your current personal situation.

STEP 4: Rebalance

Rebalancing is the process of adjusting your portfolio’s investments so they match your original allocation. When your portfolio gets out of balance, you may stray from your original risk comfort zone. For example, due to ongoing market volatility, your portfolio may have drifted toward either a more aggressive or conservative allocation than you are comfortable with. Rebalancing keeps your portfolio risk within your tolerance limits.

STEP 5: Check Beneficiaries

Your spouse is automatically the primary beneficiary of your 401k plan. But, if you are divorced, widowed or remarried, you should review your beneficiary designations to make sure the correct person is named. Also, if you want to name someone else (such as a child) as your primary beneficiary, and you are married, your spouse needs to sign a waiver of rights to your 401(k) benefits.

STEP 6: Check on Retirement Plan Changes

Does your retirement plan offer any new plan features, tools, or resources? What can you do to take advantage of these opportunities? Also, be sure you have a copy of the Summary Plan Description for your plan (available for free from Human Resources). The Summary Plan Description defines, in plain language, how your plan works and what its features are.

This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

Kmotion, Inc., 412 Beavercreek Road, Suite 611, Oregon City, OR 97045; www.kmotion.com

©2023 Kmotion, Inc. This newsletter is a publication of Kmotion, Inc., whose role is solely that of publisher. The articles and opinions in this newsletter are those of Kmotion. The articles and opinions are for general information only and are not intended to provide specific advice or recommendations for any individual. Nothing in this publication shall be construed as providing investment counseling or directing employees to participate in any investment program in any way. Please consult your financial advisor or other appropriate professional for further assistance with regard to your individual situation.

RP-840-0523 Tracking #1-05376250

Exciting Announcement: Introducing Our New Chief Investment Officer and Operations Team

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We have some thrilling news to share! Brahm Rossiter is stepping into the role of Chief Investment Officer (CIO). Brahm Rossiter will be overseeing all investment strategies and decision-making processes, ensuring the utmost level of expertise and attention to detail in managing your accounts. Brahm will be working with each team member behind the scenes. As always, Brahm is available by phone and in person.

To ensure a seamless transition and uninterrupted day-to-day operations, we’ve assembled a powerhouse team. They will be responsible for handling all administrative tasks, client inquiries, and operational aspects of your accounts. Allow us to introduce you to the members of our operations team:

Jake Taylor

Jake brings a wealth of experience in financial operations and client service. He will be a key point of contact for your account-related inquiries and will work diligently to ensure your needs are met promptly and efficiently.

Marcus Sasaki

Marcus is a seasoned professional with a strong background in investment management. He will play a crucial role in supporting the execution of investment strategies and monitoring market trends to optimize your portfolio.

Kirby Moreno

Kirby is a highly organized individual with a keen eye for detail. She will be responsible for the administrative aspects of your accounts and facilitating smooth operations.

Desiree Jacobs

Desiree is a dedicated professional with extensive experience in business operations. She will work closely with our team to ensure streamlined processes and effective communication, ultimately enhancing your overall client experience.

Rest assured, Brahm Rossiter will lead with unparalleled expertise, and our team will guide you toward financial success.

RWM Financial Group consultation
401K INVESTMENT ADVISORY SERVICES Brahm going over papers

Our team remains dedicated to understanding your unique financial goals and tailoring strategies to help you achieve them.

If you have any questions or concerns regarding this transition, or if you would like to schedule a meeting to discuss your portfolio, please do not hesitate to reach out to us. We are here to address any queries and provide you with the support you need.

We are thrilled about this positive change and the enhanced capabilities it brings to our firm. Thank you for entrusting us with your financial journey, and we look forward to continuing our partnership with you.

Addressing Common Employee Questions and Concerns about 401(k) Plans

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As an employer offering a 401(k) plan, it is important to provide your employees with the necessary information and support to help them make informed decisions about their retirement savings. In this blog, we will address common questions and concerns that employees often have regarding 401(k) plans. By proactively addressing these issues, you can promote employee engagement, boost participation rates, and enhance overall satisfaction with your retirement benefits program.

What is a 401(k) plan, and how does it work?

We’ll start by providing a clear and concise explanation of what a 401(k) plan is and how it functions. We’ll cover topics such as employee contributions, employer matching contributions, vesting schedules, investment options, and the tax advantages of participating in a 401(k) plan.

How much should I contribute to my 401(k) plan?

This section will guide employees on determining an appropriate contribution level based on their individual circumstances and financial goals. We’ll explain concepts like the power of compounding, maximizing employer matching contributions, and the potential long-term benefits of consistent contributions.

What investment options are available in a 401(k) plan?

Employees often have concerns about choosing the right investments within their 401(k) plan. We’ll provide an overview of common investment options such as mutual funds, target-date funds, and individual stocks. Additionally, we’ll emphasize the importance of diversification and the benefits of consulting with a financial advisor for personalized investment advice.

Can I access my 401(k) funds before retirement?

This section will address common questions about accessing 401(k) funds in case of financial emergencies or other unexpected circumstances. We’ll explain the rules and potential implications of early withdrawals, loans, and hardship distributions. It is crucial to educate employees about the potential impact on their long-term retirement savings and encourage them to explore alternative options before tapping into their 401(k) funds prematurely.

What happens to my 401(k) if I leave my job?

Employees often express concerns about their 401(k) funds when changing jobs. We’ll explain the available options, such as leaving the funds in the current plan, rolling them over to a new employer’s plan, or transferring them to an individual retirement account (IRA). By providing clear guidance, employees can navigate these transitions and make informed decisions regarding their retirement savings.

​​What is the difference between a traditional 401(k) and a Roth 401(k)?

Employees may have questions about the distinction between these two types of 401(k) plans. In response, explain that a traditional 401(k) allows pre-tax contributions, reducing taxable income in the year of contribution, while a Roth 401(k) allows after-tax contributions, with tax-free withdrawals during retirement. Discuss the advantages and considerations of each option to help employees determine which is more suitable for their needs.

How can I monitor and track the performance of my 401(k) investments?

Employees may express concerns about tracking the performance of their 401(k) investments. Provide guidance on accessing online portals or tools offered by the plan provider for monitoring account balances, investment performance, and contribution history. Explain the importance of regularly reviewing investment performance and making adjustments as needed to align with long-term goals.

What are the penalties for early withdrawals from a 401(k) plan?

Discuss the penalties associated with early withdrawals from a 401(k) plan. Explain that if funds are withdrawn before the age of 59 ½, they are generally subject to income tax and a 10% early withdrawal penalty. Emphasize the long-term impact of early withdrawals on retirement savings and encourage employees to explore other options, such as loans or hardship distributions, only as a last resort.

Are there any limits on annual contributions to a 401(k) plan?

Inform employees about the annual contribution limits set by the IRS. Explain that for 2023, the limit for employee elective contributions is $19,500, with an additional catch-up contribution of $6,500 for individuals aged 50 and older. Discuss the benefits of maximizing contributions up to these limits to take full advantage of the tax benefits and potential employer matching contributions.

Can I roll over funds from a previous employer’s retirement plan into my current 401(k) plan?

Explain the process of rolling over funds from a previous employer’s retirement plan into the current 401(k) plan. Discuss the benefits of consolidation, such as simplified account management and potential access to a broader range of investment options. Encourage employees to consult with their plan administrator or a financial advisor for guidance on the rollover process.

Final Notes

Addressing common employee questions and concerns about 401(k) plans is essential for fostering a sense of financial security and well-being among your workforce. By providing clear and accessible information, you empower your employees to make informed decisions about their retirement savings. Remember to encourage employees to seek professional guidance from financial advisors and periodically review their retirement strategies to ensure they stay on track towards a financially secure future.

By proactively addressing these questions and concerns, you can create a positive and supportive retirement benefits program that helps your employees achieve their long-term financial goals.

Learn More About RWM

There are many moving parts when designing, implementing, and administering a retirement plan. However, when you focus on the key areas in your initial design or partner with a professional specializing in retirement plans and administration, you can strive to avoid the common challenges and unnecessary costs while helping your employees succeed.

At RWM Financial Group, we help commercial businesses and governmental agencies design and oversee well-managed retirement plans in non-tribal and tribal organizations. Learn more about building a custom, cost-effective strategy that is compliant and promotes success for you and your employees.

This information is not intended as authoritative guidance or tax or legal advice. You should consult your attorney or tax advisor for guidance on your specific situation. In no way does the advisor assure that, by using the information provided, plan sponsor will be in compliance with ERISA regulations.