As a retirement plan sponsor, you know that you have a big responsibility. Most plan sponsors find that the responsibility of running a plan and keeping it compliant with federal law is beyond the scope of their interest and skill level. Luckily, there are many service providers and other professionals that can help you fulfill your duties.
Thanks to the popularity of the Roth IRA, many people are familiar with how Roth accounts work. As opposed to most retirement accounts where contributions are made pre-tax and withdrawals are taxed, Roth accounts are funded with after-tax money and qualified withdrawals are not taxed.
Breaches cause an immense headache for businesses, not to mention the financial toll they can take due to damage control and loss of business. The government has tried to help prevent such breaches through laws and regulations such as the Health Insurance Portability and Accountability Act (HIPAA) and PCI Data Security Standard. They provide guidelines for how to handle, store, and protect sensitive information. Lately, cyber security risk has become an important factor for plan sponsors.
The top financial concern for most Americans is not having enough money for retirement. This is a real worry for about ⅔ of workers. As a retirement plan sponsor, you can help combat those fears. Sponsoring a retirement plan is a big responsibility. Are you up to the task? Do you feel that you have the knowledge and expertise to design and run a plan that will maximize participant savings? Most plan sponsors don’t. So they hire a retirement consultant.
Recently we discussed how ERISA litigation is expanding to include a broader variety of claims, putting plan sponsors at greater risk. To combat this risk, plan sponsors need to step up and be more strategic about lowering their lawsuit liability.