Broker Check

Encouraging Participation in Your Benefits Plan

October 24, 2023

Do you have an 85% or more participation rate in your retirement plan?

Getting employees to contribute to the plan can be difficult, but low participation is concerning. Not only is it a sign your plan might not be as competitive as you thought, you could also risk losing tax benefits if participation doesn’t meet IRS discrimination tests.

A financial professional for retirement plans of small- to mid-sized companies can help you set up a quality retirement plan and increase employee participation. The goal is to provide your employees access to the tools and resources they need to make informed decisions about their retirement.

To encourage enrollment in your company's 401(k) plan, there are a number of strategies we can work together to implement, such as setting up group or one-on-one education sessions or creating automatic enrollment features. We can also make sure your plan provides competitive incentive options, such as employer matching, profit sharing, and a Roth feature.

Give the office a call today to discuss ideas for improving 401(k) plan participation at your firm. Working together, we can help your employees take advantage of this valuable benefit and pursue retirement readiness.

Distributions from traditional employer sponsored retirement plans are taxed as ordinary income and, if taken prior to reaching age 59½, may be subject to an additional 10% IRS tax penalty. This communication is designed to provide accurate and authoritative information on the subjects covered. It is not however, intended to provide specific legal, tax, or other professional advice. For specific professional assistance, the services of an appropriate professional should be sought.