The adoption agreement is your guidebook on the features associated with your retirement plan, and is something you and your administrative team should be very familiar with. It is critical that you follow the rules in your adoption agreement to help ensure the Plan stays compliant.
For the majority of the Plans we work with, adding a Roth feature is a great way to attract and retain employees. It’s a fairly easy option to administer within the Plan, assuming your payroll provider can integrate this feature, and it gives employees flexibility and control over their retirement dollars. But does it make sense for your Plan?
On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act as part of the federal stimulus package intended to stabilize the economy during the COVID-19 pandemic. The CARES Act has opened up a number of provisions for employer-sponsored retirement plans by making additional funds available to Plan participants who are impacted by COVID-19.
We’ve spoken with thousands of participants regarding retirement planning, and while most of that time is spent planning how to get dollars into their retirement plan (e.g., how much to save, how to invest), it is equally important that you and your participants understand how that money will come back out. We’re all saving for a reason, and that is to eventually use this money. So what sort of options do you have to offer your employees?