Download a PDF copy of our non-technical review of qualified retirement plan legislative and administrative issues.
Cash or deferred retirement plans, more commonly referred to as 401(k) plans, have become the backbone of the private pension system in America. They long ago replaced employer-sponsored pension plans as the most common vehicle for retirement savings.
These plans, which are primarily funded by employee contributions, typically give employees more control, allowing them to direct their own investments and providing more access to their money in times of financial need. But workers can also choose whether or not they want to participate at all. According to the Department of Labor, approximately one-third of eligible employees do not participate in their company’s 401(k) plan.
Is your 401(k) an asset or a liability for your small business? Read article from “Industry Insider Advantage”
by W. Scott Simon
In my last four columns, I described how the sponsor of a qualified retirement plan such as a 401(k) plan–the “sponsor” actually being real flesh-and-blood people who serve as trustees and other named and functional fiduciaries of the plan–can insulate itself from virtually all day-to-day fiduciary investment risk as well as operational/administrative risk to which the sponsor would otherwise be subject as a result of sponsoring the plan.
The stock-market meltdown has dealt a crushing blow to retirement plans. Brace for repercussions.
