Small Business 401(k) Blog

The Frugal Fiduciary Small Business 401(k) Blog

Get the latest industry news, deadlines and tips you need to know to help tackle your fiduciary responsibility needs.

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401(k) Fees | Plan Design | Fiduciary Responsibility

401(k) Plan Restatements - Save Fees With These Amendments

By: Eric Droblyen
February 3rd, 2021

401(k) plans must operate according to the terms of a written plan document to meet IRS qualification requirements. Most plans use an IRS “preapproved” document for this purpose. These documents must be fully rewritten (or “restated”) every six years to reflect recent law changes. The last 6-year restatement cycle was called “PPA” after the Pension Protection Act of 2006. A new cycle - called "Cycle 3" or "Post-PPA" - opened last year. From August 1, 2020 to July 31, 2022, all pre-approved 401(k) plans must be restated onto a post-PPA document.

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Roth 401(k) | Retirement Planning | Plan Design

Roth vs. Traditional 401(k) Contributions – How to Choose

By: Eric Droblyen
August 5th, 2020

The most expensive thing you’ll probably buy during your lifetime is retirement. Perhaps you’ve never thought of “buying” retirement, but that’s exactly what you do when you participate in a 401(k) plan – you’re saving now to buy retirement income later. When you consider that income may need to last 10, 20, even 30 years, it’s easy to understand why retirement is not cheap. However, by following a simple 3-step plan during your working years - save early and often, invest appropriately, minimize account fees - you can reduce the out-of-pocket cost of your retirement by a lot.

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401(k) Plan Design Checklist

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Subscribe to the The Frugal Financial Small Business 401(k) Blog and receive this free checklist for help in determing the best 401(k) plan design options and fit for your company.

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Provider Shopping | Plan Design | 401(k) Studies

The 5 Most Popular Types of Small Business 401(k) Plans

By: Eric Droblyen
July 22nd, 2020

Tens of thousands of dollars are on the line.  This might sound a bit sensational, but when it comes to choosing the right type of 401(k) plan, this is true a lot more often than many small business owners realize. 

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Retirement Plan Types | Plan Design | 401(k) Administration

401(k) vs SIMPLE IRA: Which is Right for Your Business?

By: Eric Droblyen
May 27th, 2020

401(k) or SIMPLE IRA?  Whether you’re just looking to confirm a choice or haven’t even begun to make one, you know this is an important decision. The kind of plan you pick could have an enormous impact on the finances of everyone involved in your business. 

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Blog Feature

Retirement Planning | Plan Design

The CARES Act - 401(k) Participant Distribution and Loan Options

By: Eric Droblyen
April 15th, 2020

The Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law on March 27, 2020 in response to the COVID-19 crisis. The Act allows – but does not require - employers to loosen the participant distribution and loan provisions of their 401(k) plan and any Coronavirus-affected individual to reduce the tax burden of most 401(k) distributions. 401(k) participants should understand their options under the CARES Act as soon as possible – this economic relief is temporary.

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Retirement Plan Types | Safe Harbor 401(k) | Plan Design

Safe Harbor 401(k) Plans: Answers To Common Questions

By: Eric Droblyen
March 18th, 2020

Safe harbor 401(k) plans are the most popular type of 401(k) sponsored by small businesses today. They can help business owners maximize the contributions made to their personal account each year by automatically passing the ADP/ACP and top heavy nondiscrimination tests. However, to achieve safe harbor status, a 401(k) plan must meet certain contribution and participant disclosure requirements. For many business owners, this trade-off is worth it. Here’s why:

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