200 Meridian Centre, Suite 150
Rochester, NY 14618
585.350.7273
You Can Flip The whole Page , it's a new Advertising Technique invented by Flippy

401K Articles

Mastering A Difficult Conversation: Employee 401k Withdrawals

written by Kay Pfleghardt


If an employee is in a situation of financial hardship, he/she may ask for either a hardship withdrawal or a loan. To begin with, it is essential to know the difference between the two.

A hardship withdrawall can be taken by an employee in times of “immediate and heavy financial need.” Hardship withdrawals limit the amount an employee can withdraw to just the amount needed to satisfy the financial need, plus income taxes. Unlike loans, a withdrawal does not need to be paid back. In fact, the employee is restricted from contributing unused, withdrawn dollars.

Qualifying for a hardship withdrawal is not just a simple process of asking for the money.

Read More

 

Don’t Overlook Your Roth 401K

written by Kay Pfleghardt


On January 1, 2006, employers were given the opportunity to offer their employees the new Roth 401(k) option1. Yet, as of January 1, 2017, only 49% of employers have chosen to implement this feature2.This month we take a look at why the Roth 401(k) is overlooked by so many plan sponsors, and what you can do to “Turbocharge your 401k” to keep your top employees happy.

The Roth 401k Powerplay

Regardless of which end of the wealth spectrum you fall, we can all agree that Roth IRAs are a great opportunity. Unfortunately, high income earners are disqualified from contributing directly to a Roth IRA. In 2016, if you and your spouse made anything over $194,000 you fell into this group. As it turns out, those high income earners are some of your most valued employees. Here’s something big that you can do to help them. Unlike the Traditional Roth IRA, the Roth 401(k) has no income limit restrictions. Under current tax law, employees are eligible to contribute up to $18,000 per year in after-tax money to a Roth 401(k), as long as their employer offers this option.

Read More

 

401k Participant Sues Target Over Company Stock

written by Kay Pfleghardt


“A proposed class action lawsuit filed by a participant in Target Corporation’s 401(k) plan alleges the company violated its fiduciary duties under the Employee Retirement Income Security Act (ERISA) by continuing to allow participants to invest in the company stock fund when it was no longer prudent.”1

In the case of Knoll vs. Target Corporation the plaintiff complains that the defendant should have closed the opportunity for plan participants to invest in the Target Corp. fund itself. Alternatively, the plan sponsor should have directed these funds to be invested in the plan’s default investment option.

Things to Consider

Twenty years ago, the vast majority of company retirement plans were pensions. Employees worked until full retirement age, and their steady pensions allowed them to thrive in retirement.

Read More