Insider Tip: Revise Your Workplace Retirement Plan (7/5/22)

By Jason T. Lee, CRPC CRPS/Retirement Planner ~ Innovative Financial Solutions

Tuesday July 5th, 2022 ~ Updated 08:04

When building your overall retirement plan, the employer-sponsored retirement plan is an important part of the Social Security supplement for retirement income. There are various employer-sponsored plans. The most popular offered are 401(k), 403(b), and SIMPLE IRAs. For those whose employer doesn’t offer a retirement plan, be sure to consider starting a traditional or Roth IRA. Any retirement plan is better than no retirement plan!

For business owners, it’s very important to review your plan every year to make sure it meets the goals and objectives for you and your employees.

A review of the design of the plan is crucial. There are many ways to structure your plan, so make sure it’s what’s best for your wallet and in the best interest of the employee.

Ensuring that you (and your employees) are not overpaying, be it record keeping fees, investment or TPA fees, etc., is also critical to the success of the plan. These fees are readily available through the fee disclosure document and should be readily available to any attendee.



Another factor that contributes to the success of your retirement plan is having an advisor who will meet with them, answer their questions and give them advice to ensure they are on the right path to retirement. Annual reviews are important in all aspects of retirement, as life unfolds and your needs may change, leading to changes in your retirement plan.

Lack of understanding of the benefits of the Roth option inside the 401(K) is a common mistake I feel. Many employees do not know if this is offered in their plan. Some feel they cannot contribute, among other misunderstandings. The possibility of potentially having tax-free withdrawals in retirement is very appealing to most people. You should at least consider it.

You probably offer retirement benefits to help attract and retain good employees, and it’s just as important to keep track of benefits and ongoing changes to make sure.

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