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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Safe Harbor 401(k) | Retirement Planning | Plan Setup

Deadlines for 401k Adoption – Including SECURE Act Changes

By: Eric Droblyen
September 2nd, 2020

On December 20, 2019, the Setting Every Community Up for Retirement Enhancement (SECURE) Act was signed into law. The legislation made many significant retirement plan changes, including later deadlines for adopting a new 401(k) plan or amending a traditional 401(k) into a safe harbor plan. For most small businesses, these changes took effect January 1, 2020. 

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Safe Harbor 401(k) | Thought Leadership | Fiduciary Responsibility

COVID-19 – 401(k) FAQs for Business Owners and Plan Participants

By: Eric Droblyen
March 31st, 2020

Without question, the COVID-19 pandemic has created a great deal of economic uncertainty. In response, we have received numerous crisis-related 401(k) questions from small business owners. In general, they want to know their options for cutting (or delaying) plan expenses and participant options for taking a 401(k) distribution and loan. This FAQ includes answers to many of the most common questions we have received.

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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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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 annual contributions made to their personal account 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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Safe Harbor 401(k) | Plan Design | Plan Setup

Traditional Safe Harbor 401(k) Plan vs. QACA – How to Choose

By: Eric Droblyen
August 21st, 2019

Safe harbor 401(k) plans are the most popular type of 401(k) used by small businesses today. Unlike a traditional 401(k) plan, they automatically pass the ADP/ACP and top heavy nondiscrimination tests when certain contribution and participant disclosure requirements are met. This trade-off is well worth the cost for many business owners, who often bear the brunt of the consequences when their 401(k) plan fails testing.

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

Safe Harbor or Traditional 401(k) Plan – How to Decide

By: Eric Droblyen
March 6th, 2019

Safe harbor 401(k) plans are the most popular type of 401(k) used by small businesses today. Unlike a traditional 401(k) plan, they automatically pass the ADP/ACP and top heavy nondiscrimination tests when mandatory contribution and participant disclosure requirements are met. This trade-off is worth it for many business owners, who often bear the brunt of the consequences when their 401(k) plan fails testing. However, a safe harbor 401(k) plan is not the best fit for every small business. They can cost more than a traditional 401(k) plan, but offer less plan design flexibility – making it harder for some business owners to meet their plan priorities

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Safe Harbor 401(k) | Testing | Fiduciary Responsibility

401(k) Contribution Deadlines – You Don’t Want to Miss Them!

By: Eric Droblyen
January 9th, 2019

All 401(k) plan contributions have deposit deadlines – and it’s up to 401(k) fiduciaries to meet them. Yet, many employers are unclear about the deadlines applicable to their 401(k) plan. That confusion can easily lead to late contributions. When that happens, there are always consequences for the employer. They range from mild (losing a tax deduction, making participants whole for lost earnings) to severe (plan disqualification, IRS and/or civil penalties). Fortunately, these consequences are easily avoided with some basic education.

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