Kickstart Your 401(k) Evaluation

As we breeze past the year's midpoint, now is the optimal time to give your company's 401(k) plan a thorough review. It's a chance to ensure the plan aligns with your business goals and prioritizes employee financial wellness before the end-of-year rush catches up.

Review Participation Rates

Start by examining the participation rates in your 401(k) plan. How many employees have enrolled? Identifying trends in participation is essential. If there's a lag, consider introducing strategies to boost engagement. Educational campaigns or enhancing employer-matching incentives can make a significant impact.

Evaluate Contribution Levels

Take a close look at whether employees are contributing enough to leverage the full benefits of the 401(k) plan, including employer matches. Mid-year adjustments can be a pivotal factor in ensuring stronger retirement outcomes for your employees.

Ensure Compliance

It's crucial to reaffirm that your 401(k) plan is compliant with regulatory requirements. Overlooking this aspect may lead to penalties or complications later on. Familiarize yourself with common compliance issues and implement processes to address them effectively.

Assess Competitiveness

Evaluate your 401(k) plan against industry standards to ensure it remains a valuable asset in recruiting and retaining top talent. Benchmarking strategies can help ensure that your plan is not only competitive but also appealing to prospective employees. A mid-year 401(k) check-in is invaluable for maintaining the plan's efficiency. Being proactive now prevents last-minute issues, ensuring the 401(k) plan functions optimally for both the business and its employees as the year progresses.