Human Interest’s Post

Did you know that there will be 1 million 401(k) plans by 2030? Thank you to PLANADVISER and Natalie Lin for asking Stephen Rubino, J.P. Morgan's Head of Retirement, to share his insights on what’s driving the explosion in new 401(k) plans, one of the key trends driving change -- and progress -- in the retirement space. https://lnkd.in/gUThQK9Y #retirementgoals #retirementsavings #retirementsolutions #financialwellness #definedcontribution #401k #401kplans #wealthmanagement 

Building and running a 401k business model and a personal wealth management business model at the same time has been incredibly challenging. As in, "maybe this was a bad idea. Someone please come save me" type of challenging. It turns out, doing more than one thing, and doing them both well, is difficult. Who woulda thought?! 😂 Anyway, I think we've learned a few things along the way, usually the hard way, and I had the chance to share my thoughts with Alex Ortolani and PLANADVISER. Take a gander if you feel so inclined. #401k #planadviser #retirement #financialwellness

As a self-employed business owner with no employees, can I set up my own solo self-employed 401(k) plan to help save for retirement?   Yes. Self-employed individuals with no employees and owner-only businesses can set up their own solo self-employed 401(k) plan to help save for retirement. The owner's spouse may participate in the plan if they are a compensated employee of the business.   Key Considerations: Tax Benefits: -Enjoy tax-deferred growth, tax-deductible contributions, and pre-tax deferral contributions.   Contributors: -The plan is funded by both salary deferrals and employer contributions.   Contribution Limits: -Individuals can contribute up to $22,500 for 2023 ($30,000 if age 50 or older). -Employers can contribute up to 25% of compensation, with the annual maximum set at $66,000 for 2023. -Total contributions cannot exceed $66,000 for 2023 ($73,500 if age 50 or older and contributing the catch-up contribution amount). -Salary deferral catch-up limits are $7,500 for 2023 (if age 50 or older).   Withdrawals: -Participants can only make withdrawals after a "triggering" event, such as turning age 59½, disability, or death. -A 10% early withdrawal penalty applies if you are under age 59½ and taking a distribution. -Required minimum distributions start at age 73.   Investment Options: -Choose from a diverse range of investment options, including mutual funds, stocks, bonds, ETFs, and more.   Administrative Responsibilities: -An IRS filing is required upon plan termination and, in some cases, on an annual basis.   Establishment Deadlines: -The deadline to open a new plan is generally the tax filing deadline (including extensions) of the sponsoring business. -Note: for partnerships and corporations establishing their plan after the business's year-end, only employer profit-sharing contributions are permitted for the first year.   Disclosures Securities and Advisory Services offered through LPL Financial, a Registered Investment Advisor. Member FINRA/SIPC. This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

What are the most important features to a 401(k)? Some same lower fees, and yes this is important, but the fees need to make sense for what services are being offered. The more impactful the service provides, the better the opportunities to drive better outcomes. Discuss with your retirement plan consultant if you are missing out on features. CSi Advisory Services

In a panel hosted by the National Association of Plan Advisors at the NAPA 401(K) Summit, on Tuesday, April 9, 2024, a group of advisers and recordkeepers met to discuss the “big opportunities” around small plan creation and the opportunity to close the coverage gap for 57 million workers.   But, as the group discussed, in the case of small plans, growth in numbers is not necessarily a slam dunk for advisory firms.   How big is the opportunity? A recent Cerulli Associates report forecasted that the 401(k) market would grow from about 668,419 total plans at the end of 2022 to nearly 1 million by the end of the decade. The opportunity is there but is the industry ready for it to serve the market? At Pension Resource Institute, LLC, our view is not dissimilar to that of Mike Dullaghan, AIF® when he states: “It doesn’t look possible to double the number of advisers to cover this space. To help solve that issue advisers need to get comfortable and even “addicted” to fintech companies and resources that can help with plan sign-up and management”.   Our mission is to make retirement plan compliance accessible and affordable. We do this by identifying the right services to deliver and building compliance resources from there. Our service is delivered through a turnkey compliance, practice management, and training platform, backed by unlimited consulting to grow your business.   Alex Ortolani writing for PLANADVISER provides advisers and recordkeepers insights as to the viability of working in the small plan space amid anticipated growth here:   https://lnkd.in/eWUF96Nk   #retirement #retirementplans #erisa #401k #planadvisers

I've been critical of many practices in the retirement industry, and the problem of hidden fees is a good example of why. 401k providers deserve to get paid for the work they do. Of course. And participants deserve to know what fees they are paying and have the freedom to choose how their money gets spent. Hidden fees basically come in two varieties. First, revenue sharing fees are corrupt by nature. They represent an inherent conflict of interest that often results in lower returns for participants. Second, annuity wrap fees are unnecessarily exorbitant, resulting in substantial lost opportunities for investors. A bigger problem is that providers are allowed to hide these fees. They are not required to be transparent and openly disclose them, and so... they don't. The fees are well hidden and the average 401k participant is not savvy enough to find these fees, let alone understand the impact they have on the bottom line of their retirement accounts. If providers had any integrity, they would be more transparent with these fees, or even better, not charge them in the first place. How will participants and employers trust plan providers if they obfuscate something this important? Eric Droblyen, CPC, QPA is absolutely right. Participants need to be fanatical about watching their #401k fees. #investing #retirementplanning https://lnkd.in/gRhSGKxQ

📣 Attention small business owners! 📣 If you are overwhelmed by the task of choosing a retirement strategy for your business, then you may want to consider whether a Simplified Employee Pension Individual Retirement Arrangement (SEP-IRA) may be right for you. A SEP-IRA can be established by sole proprietors, partnerships, and corporations, including S corporations. Some advantages of the SEP include: 1.      Flexibility to vary employer contributions 2.      Low admin fees and responsibilities 3.      Employees establish their own accounts and self-direct the investments If you want to learn more about SEP-IRAs, click here: https://lnkd.in/eEctRpKV #SEPIRA #SEP #SmallBusinessOwners #Route65Financial #PersonalFinances #FinancialServices #WealthManagement #SocialSecurityPlanning #IndependentFinancialFirm #FinancialPlanning

Client win: I have a client couple, blue-collar business owners earning ~500K+ in any given year. 🤑 LLC filing as S-Corp, no employees, just contractors they pay via 1099. They have been maxing out 2 Traditional IRAs for years... So no more than $15,000 total as of last year. Fellow advisors, you might see where this is going... 💡 Neither their CPA nor their previous "financial advisor" have ever mentioned an alternative over their Traditional IRAs for retirement savings / tax benefits as business owners. 😑 Enter the Solo 401(k) 💰 As business owners with no W-2 employees, they are eligible to both open an Individual 401(k), aka Solo 401(k). Sure, a little more setup paperwork and admin involved than a Traditional IRA. But going forward they will be able to contribute and deduct up to... wait for it... 🕗 $76,500 EACH (Over age 50, 2024) - $30,500 as "employee" contributions - $46,000 as "employer" contributions for a total of $153,000, pre-tax, to these accounts. 💸 At the 32% tax bracket that's $48,960 LESS in taxes they'll have to pay this year vs. $5,120 if they continued on with the Traditional IRAs. Not to mention supercharging their retirement savings. ⚡ Business owners have such powerful tools available to them when it comes to investing and tax savings. But if they aren't aware themselves, they have to work with professionals that know the ins and outs of these tools or risk missing out.

Are you a small business owner caught up in the daily hustle and bustle of running your own business? Retirement planning might be the last thing on your mind, but it doesn't have to be complicated. You might want to consider a Simplified Employee Pension Individual Retirement Arrangement (SEP-IRA) as a stress-free retirement strategy for your business. 📈 Here are some benefits to a SEP-IRA: ·        Flexibility ·        Employee benefits ·        Simple administration ·        Tax efficiency Unlike some other plans, a SEP-IRA offers a simplified approach to retirement planning, allowing you to maximize contributions while keeping administrative duties to a minimum. Read more here: https://lnkd.in/eEctRpKV #SmallBusiness #RetirementPlanning #SEPIRA #Route65Financial #PersonalFinances #FinancialServices #WealthManagement #SocialSecurityPlanning #IndependentFinancialFirm #FinancialPlanning

Are you a small business owner looking for a simple and flexible retirement plan? If so, you may want to consider a SEP-IRA. A SEP-IRA allows you to contribute up to 25% of your compensation, with a maximum of $66,000 in 2023, to your own and your employees’ retirement accounts. You can vary your contributions each year and you don’t have to file any plan documents with the IRS. Plus, your employees can choose their own investments within their SEP-IRA accounts. To learn more about the benefits and requirements of a SEP-IRA, check out our latest article: Is a SEP-IRA Right for Your Business? https://lnkd.in/eb9F9Cgi