When was the last time your retirement plan got a checkup?
- Nicholas Winn
- 1 day ago
- 4 min read
In today’s fast-paced work environment, it’s easy to forget about the key details of your company’s retirement plan. Similar to how a car requires regular tune-ups to perform effectively, your retirement plan needs frequent assessments to ensure it’s running at peak efficiency. If your company has a retirement plan already in place, now is the ideal time for a checkup.
This post will highlight why reviewing your retirement plan is essential, what to examine during a checkup, and how we can help you identify hidden fees, missed tax-saving opportunities, and compliance gaps under California’s new retirement law.
The Importance of a Retirement Plan Checkup
A retirement plan isn't just an employee perk; it's an important part of your business strategy. An optimized retirement plan can draw in top talent, boost employee morale, and provide tax deductions that benefit your organization. But if your plan is outdated, it might be costing you and your employees more than you realize.
For instance, according to a recent survey, nearly 30% of employees consider retirement benefits crucial when deciding whether to stay at their jobs. Regular reviews can help pinpoint areas of improvement, ensuring your retirement plan stays attractive and meets current legal standards.
Hidden Fees Eating into Your Returns
Hidden fees can be a sneaky drain on retirement plans. These costs can come from various sources, such as:
Fund management fees: These are the costs associated with managing the investments in your plan.
Administrative costs: Expenses tied to running the plan, like record-keeping and compliance reporting.
Even minor fees, when compounded over time, can erode your employees' savings. For example, a 1% increase in fees may result in a 30% reduction in retirement savings over 30 years. During a checkup, our team will thoroughly analyze your current plan to pinpoint any hidden costs. We'll help you make informed choices like switching to more cost-effective investment options or negotiating lower fees with service providers.
Missed Tax-Saving Opportunities
A retirement plan checkup also serves as a chance to uncover missed tax-saving opportunities. Many businesses overlook the tax incentives available for retirement plans. For example:
Contributions to a plan can be tax-deductible, reducing your total taxable income.
Small businesses can qualify for tax credits when establishing new retirement plans.
By reviewing your plan, we can help ensure you're maximizing these benefits. In 2022 alone, businesses that took advantage of tax credits saved an average of $2,000 annually.
Compliance Gaps Under California’s New Retirement Law
California’s new laws mandate that businesses either offer a retirement plan or enroll in the state-run CalSavers program. While CalSavers is an option, it is not your only choice. A bespoke retirement plan can deliver better employee benefits, increased flexibility, and greater tax advantages.
During a checkup, we'll assess your compliance with California’s laws, identifying any gaps. For instance, failing to meet deadlines could lead to penalties of up to $500 per employee. Our team is here to simplify the compliance process, ensuring your business meets all legal obligations.
Comparing Your Plan to Other Options
After evaluating your current plan, we will show you how it stacks up against other options in the market. This comparison is crucial for understanding if your existing plan offers the best benefits for both your business and your employees.
A well-structured retirement plan can provide:
Lower fees to increase savings.
Better investment options that can enhance growth.
Exploring alternative plans ensures you are providing optimal retirement benefits for your team.
The Benefits of a Customized Retirement Plan
While CalSavers is a default program, a customized retirement plan has distinct advantages. By tailoring your plan, you can better meet the goals of your business and the needs of your employees.
Customized plans may feature:
Matching contributions to encourage employee saving.
Profit-sharing options to reward your team for their hard work.
Plus, these plans offer enhanced flexibility, enabling adjustments as your business evolves.
Making Compliance Simple
Understandably, navigating the intricacies of retirement plan compliance can seem overwhelming. However, our team specializes in simplifying this process. We will ensure your plan aligns with all regulatory requirements without causing additional stress to your business operations.
Partnering with us means you can focus on your strengths—running your business—while we take care of optimizing and ensuring compliance for your retirement plan.
Don’t Wait Until the Deadline
The deadline for compliance with California's new retirement law is December 31, 2025. Waiting until the last moment to review your retirement plan can lead to complications and lost opportunities.
Now is the time to ensure your plan is optimized and compliant. Taking action today can secure a better financial future for both your employees and your business.
Take Action Now
In summary, a retirement plan checkup is vital for any business that values its workforce and aims for long-term success. By addressing hidden fees, discovering tax-saving opportunities, and closing compliance gaps, you can improve your retirement plan for the benefit of your team.
Don't wait for deadlines—schedule your plan checkup today. Your employees deserve a robust retirement plan that supports their future. Taking proactive steps now will pave the way for a brighter tomorrow!
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