As summer temperatures rise and competition in Colorado’s job market heats up, do you have what it takes to rise above the rest? Are you sure your company’s benefits are valued by your employees and by prospective candidates who you want to join your organization?
Corrective distributions occur when a 401(k) plan sponsor has to return a portion of the contributions made by highly compensated employees (HCEs). Corrective distributions arise out of the plan’s failure to pass its annual non-discrimination testing.
As a plan sponsor you have a fiduciary responsibility to your plan participants. This fiduciary duty extends to all aspects of your organization’s 401(k) plan. One of the most important aspects of a 401(k) or any defined contribution retirement plan is the investment menu offered to the plan participants.
As the Millennial generation turns 40, there are encouraging signs that many of this generation’s 72 million members are embracing long-term investing with a sharp eye toward retirement, according to Shelton Retirement Plan Services.
Plan sponsors should be reviewing all aspects of their company’s 401(k) on a regular basis including these three reasons. Your plan’s advisor or consultant should be playing an integral role in this review process. Upgrading your plan every so often can be a good thing for your company and for your participants.