Managing a 401(k) plan involves more than offering retirement benefits—it requires fulfilling fiduciary duties under ERISA (Employee Retirement Income Security Act). Many plan sponsors don’t fully understand these legal responsibilities, putting themselves at risk....
Courtney Brown
Unlocking Savings and Tax Sheltering Potential Via Cash Balance Plans
Many businesses are seeing the benefits of Cash Balance (CB) plans Offering Cash Balance as a sidecar to a 401(k) plan unlocks an additional retirement savings benefit for highly compensated employees. For high-income business owners or partners, a CB plan may create...
Auto-Enrollment Becomes Mandatory for New 401(k) Plans in 2025
Starting in 2025, most new 401(k) and 403(b) plans will be required to automatically enroll eligible employees, a change brought by the SECURE 2.0 Act passed by Congress in 2022. The provision aims to boost retirement savings by making enrollment the default option...
401(k) vs. SIMPLE IRA: The Optimal Retirement Choice
When deciding to implement a retirement plan for your business, you will be presented with two options: a 401(k) or a SIMPLE IRA. While a 401(k) is more recognizable, both options offer retirement savings for eligible employees, and can include contributions from both...
Understanding State-Mandated Retirement Plans
In an attempt to address the country’s retirement savings crisis, several states have now started requiring certain employers to offer a retirement savings option. If employers are unable to provide a private retirement plan, they must adopt their state-mandated plan....
401(k) Nondiscrimination Testing: What You Need to Know
As the calendar flips into the new year, 401(k) compliance teams across the country are prepared for long days as they race against a March 15 deadline to complete the required Nondiscrimination Tests. These tests are required by the IRS to ensure that every employee...
2025 Contribution Limits
Each year, the Internal Revenue Service (IRS) raises the contribution limits for 401(k) retirement plans, allowing employees to put aside more for the future. Below you will find an overview of the current 401(k) contribution limits for 2024 and the updated limits for...
American Trust Retirement Review Insights, Trends and Strategies for Success
At American Trust Retirement, it’s our goal to keep you informed. We are dedicated to adding value to your retirement plan practice by helping to keep you up-to-date on what’s going on in the industry. With 2024 nearing its end, we wanted to share a list of some of...
Cash Balance Plans: A High-Impact Solution for Financial Advisors and Clients
When it comes to retirement planning, options like 401(k)s and IRAs are popular, but business owners and high-income earners often seek more robust solutions. Cash Balance Plans offer a compelling alternative, blending the benefits of a traditional defined benefit...
The Importance of 401(k) Benchmarking
In 2012, the Department of Labor issued final regulations for Section 408(b)2, requiring all 401(k) providers to fully disclose direct and indirect fees in a standardized format. This transparency has pressured Plan Sponsors and Advisors to scrutinize 401(k) fees,...