The Human Resources, Inc. approach to retirement plan management
We work with businesses both large and small. Our benefits specialists can set up a retirement plan for your company, such as a 401(k), that is completely tailored to fit your needs. Money put into a 401(k) may be withdrawn directly from an employee’s paycheck on a pre-tax basis. Defined benefit pensions are largely a thing of the past and we’ve found that having a 401(k) retirement plan in place helps to maintain employee satisfaction and retention. We work with nationally recognized mutual funds, including Vanguard and Fidelity.
Let us take all the administrative tasks off your hands so you can spend more time growing your business, such as:
- Calculating employer contributions
- Keeping employee contributions up-to-date
- Conducting annual discrimination testing, as required by the IRS
- Filing annual 5500 reports
- Handling the annual audit
Your 401(k) made easy!
Not everyone has a financial advisor, so we can simplify the plan to make it easier for employees to figure out which mutual funds to invest in. How do we do this? By offering balanced funds aimed at their anticipated date of retirement. Participants looking to retire in 2025 or 2030 would select funds with their retirement year in the name – i.e. “Vanguard Target Retirement 2030 Fund”. What’s more, employees will be able to access their accounts 24/7 online.
What is non-discrimination testing?
The IRS has rules that limit how much your highly compensated employees (HCEs) can contribute to their 401(k), based on how much the rest of your company contributes. Basically, if non-highly compensated employees (NHCEs) participate more in the retirement benefit, then your executive level employees will be able save more too. This rule is enforced through non-discrimination (ADP and ACP) testing. There are a variety of complex and onerous discrimination tests that must be satisfied on an annual basis. HRI can ensure that you comply with mid-year testing and safe harbor provisions.