Reviving your 401(k) plan…and making it “rock”
The year-end keeps most people busy preparing for the holidays and completing projects at work. For some, tax planning and considering how investments will affect their tax bill on April 15 are also annual rituals. Employees looking to limit their tax liabilities are grateful that they contributed all year to their 401(k) plan.
However, with the losses employee retirement plans suffered during the 2008 market crash, are your employees still satisfied with their plan’s performance? Are they looking for new ways to invest their money?
And employees aren’t the only ones noticing that 401(k) plans have taken a beating. In an effort to ensure that employees understand their plans and the risks involved, the Department of Labor recently issued new rules. Employers are now required to disclose various fees and offer transparency in fund performance and comparisons.
So how can you restore confidence in your 401(k) plan? This Thursday, Dec. 16, Frank Armstrong of Investor Solutions will present “401(k) Plans That Rock,” an audioconference sponsored by Workplace HR & Safety. His list of best practices include the following:
• Ensure a stable plan structure.
• Choose varied and high-performing investment choices.
• Create model portfolios.
• Spend time on enrollment and education.
• Monitor investment choices.
• Rebalance and monitor model portfolios.
If you sign up for the audioconference, feel free to share, during the presentation, how your organization has renewed employees’ confidence in its 401(k) plan.