Have 401(k) questions? Let us help!

Have 401(k) questions? Let us help!

Both employers and participants have asked our customer service and sales representatives some great questions. From loans, to catch-up contributions and fiduciary responsibility, we’ve got your answers. Check out our Oldies But Goodies 401(k) replay list.  Here are the 10 most frequently asked questions:

Q1: How much money will I need to save before I can retire?

Answer: As a group, American workers are $6.6 Trillion short of what we need to retire comfortably. At PAi, we want to change that. One of the challenges in planning for retirement is finding simple, straightforward ways to share information. This calculator cuts through the clutter, showing participants the impact of their retirement savings decisions. Use a retirement calculator to project how much you’ll need to save for the retirement you want.

Q2: What is an employer’s fiduciary responsibility? 

Answer: A retirement plan is a complex benefit that is regulated by Employee Retirement Income Security Act (ERISA). Often times employers/plan sponsors don’t know that they have fiduciary responsibility to the retirement plan they offer. By downloading this white paper you’ll learn what a fiduciary is and how it affects you and your plan. Download the free Fiduciary Playbook

Q3: How do I know if my 401(k) is fiduciary compliant?

Answer: As an employer, you have a responsibility to make sure your 401(k) plan is operating correctly and is maintained in the best interest of your employees, which is what being Fiduciary Compliant means.  However, you’re not a retirement expert, so it can feel overwhelming when you encounter all the rules and regulations regarding retirement plans. You have to take it seriously because the consequence of a plan falling out of fiduciary compliance could be a personal liability for Read on >>

Q4: Could the proposed tax reform affect my 401(k) retirement savings?

Answer: An estimated 52 million American workers now have over $4 trillion, in more than half a million 401(k) plans. That’s an enormous slice of the population that is now worrying about potential tax ramifications to their retirement savings accounts. Read on >>

Q5: Can I take out a loan through my 401(k)?

Answer: The rules governing 401(k) plans allow plans to provide loans, but employers don't need to make it a plan feature. If offered, there are some very strict and detailed guidelines on making and administering them the employer must adhere to. Before you take the loan out remember, one of the top rules of retirement planning hasn't changed. Read on >>

Q6. As an employer I want to make sure I have the right 401(k) plan for me and my employees. What should I be looking at when I shop around?

Answer: As a responsible plan sponsor you may occasionally wonder if there’s a different retirement plan provider that’s more beneficial to your employees and your organization. Before you do any legwork, and certainly before you make any decisions, it’s important to:  Read on >>  

Q7: What are catch-up contributions?

Answer: Catch-up contributions are just that – an opportunity for people age 50 and older to “catch up” on retirement savings by putting additional money into their retirement plans over and above standard limits.  If your plan allows, after you contribute the maximum regular contribution ($18,000 for 2017) allowed for the year, you may make an additional catch-up contribution. Read on >>

Q8: Are there fees charged to my 401(k) plan?

Answer: From consulting and advising, to recordkeeping and administration, these fees ensure that a business is compliant, investments are appropriate, and participants are educated, engaged and given the right tools to work toward their future financial readiness. Here’s how you can tell if fees are reasonable Read on >>

Q9: I am an employer that currently does not offer a retirement savings plan for my employees. I heard there may be some tax benefits for both of us; is that true?

Answer: Whether you are an employer or employee, one of the most appreciated benefit of a 401(k) retirement savings plan is that participant contributions can be made on a pretax basis, effectively decreasing the income participants need to report to the IRS. In addition, retirement accounts grow tax-free Read on >>

Q10: Can a small business with less than 10 employees offer a 401(k) plan?

Answer: In spite of the widely held belief that certain businesses are simply too small to offer a workplace 401(k) plan, the reality is there are no size restrictions on 401(k) plan eligibility. In fact, small businesses without a retirement plan could be denying themselves and their employees important advantages.

Still have questions? Let CoPilot help. CoPilot, powered by PAi, is a managed retirement savings service that works hard to make things as simple and easy for you as possible. Part of that is working out all the confusing things so you don't have to. So, if you're interested, here are the nuts and bolts:

  • Meets all required criteria for new DOL fiduciary standards.

  • Fund selection, monitoring and benchmarking.

  • Ensures all plan fiduciaries are ERISA compliant.

  • Participant-level fund selection review.

  • Development and maintenance of investment policy statement.

  • Operates within ERISA safe harbor provisions.

Contact us online or call to start a 401(k) conversation: 800-236-7400.