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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.

Blog Feature

Retirement Plan Types | Plan Design

Are Profit Sharing Contributions Right for Your 401(k) Plan?

By: Eric Droblyen
January 10th, 2018

Bar none, profit sharing contributions are the most flexible type of employer contribution a company can make to their 401(k) plan.  These contributions are not only discretionary, but they can be made to any eligible plan participant – even if the participant fails to make 401(k) deferrals themselves.  They can also be allocated using dramatically different formulas – allowing employers to meet a broad range of 401(k) plan goals with them. 

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Plan Design | 401(k) Studies

Automatic Enrollment – Is It Right for Your Small Business 401(k) Plan?

By: Eric Droblyen
October 4th, 2017

Last year, we studied the plan designs of 2,767 small business 401(k) plans that averaged approximately 25 participants and $1M in assets.  We found only 8.71% of these plans automatically enroll eligible employees who fail to make their own affirmative enrollment election.  In contrast, a 2014 Willis Towers Watson study found 68% of 457 larger 401(k) plans include an automatic enrollment feature.

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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.

Blog Feature

Retirement Plan Types | Plan Design

403(b) vs. 401(k) Plans for Non-Financial People

By: Holly Roussel-Godfrey
July 26th, 2017

You’ve been taxed with the responsibility of setting up a retirement plan for your tax exempt organization and now you’re trying to decide between a 403(b) or a 401(k) plan. You’ve Googled, you’ve read, you’ve cringed at the technical language presented to you, desperately trying to understand the differences. Been there, done that.

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Retirement Plan Types | Plan Design

New Comparability 401(k) Plans - Are They Right for Your Small Business?

By: Eric Droblyen
April 19th, 2017

One of the most common goals for a small business 401(k) plan is maximizing owner contributions up to the legal limit - $60,000 for 2017 (assuming employee catch-up contributions). Often, the cheapest way to meet this goal is using a new comparability profit sharing contribution. Unlike other types of 401(k) profit sharing, these contributions permit an employer to allocate multiple contribution rates to different employee groups – making larger contribution rates to business owners possible.

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Blog Feature

Roth 401(k) | Retirement Planning | Plan Design

Roth 401(k) Deferrals — Answers to Common Questions

By: Eric Droblyen
January 25th, 2017

In a 2016 401k plan design study of 2,767 small businesses, we found 66% permit participants to make after-tax Roth deferrals to their personal account. I think it’s safe to assume the high adoption rate of this 401k plan feature is due to participant demand.

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Retirement Plan Types | Fiduciary Responsibiilty | Safe Harbor 401(k) | 401(k) Fees | Plan Design | 401(k) Studies

Our Top 10 401k Blogs of 2016: What Topics Were the Most Popular?

By: Eric Droblyen
December 28th, 2016

Happy Holidays from the Frugal Fiduciary! As 2016 comes to a close, we looked back through this year’s blogs to find the most read.  It turns out our most popular blogs related to the following topics:

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