Time for a 401(k) wellness check

 What’s going on in the world of company retirement plans? Competition for employee talent remains high, and 401k plans are an important employee benefit. Retirement plans enable business owners to shelter taxable income and diversify personal assets outside of their business assets.

The mandated Cal Savers deadlines, impacting companies with 5 or more employees, have come and gone. We hope you have communicated with Cal Savers and avoided fines. To get started, google the phrase “cal savers opt out” to learn what you need to do and let us know if you have any questions. Cal Savers’ phones are answered, which isn’t always the case these days.

By now you have heard about the generous mega-plan available through the Carlsbad Chamber. It benefits many thousands of small businesses and allows chamber members to enjoy economy-of-scale including low costs, lower liability and expansive service only available to very large companies. Like any plan, each company establishes their own plan design features such as eligibility, vesting and matching parameters. This plan is tough to beat but you won’t know until you benchmark your plan in comparison. This is a great start up plan too.

O’Reilly Wealth Advisors, contact information below, will assist you with plan assessment and evaluating options including the Chamber option. Any licensed financial professional chamber member can work with the Chamber plan and bring it to their chamber member clients.

We encourage you to annually assess your plan’s goals and value. So many companies set up the plan and then leave it on cruise control.

Business owners and executives have a fiduciary duty to perform regular “wellness checks” on their 401k plan, and document the results, since employees’ hard earned money is in the plan.

Plans and accompanying financial wellness options are evolving rapidly. For example, we offer on-line financial planning and estate planning to give our retirement plan clients’ employees more ability to reach their goals. Studies show that employees’ productivity increases through financial wellness programs.

 Your plan may have been adequate years ago, but now? The answer is to benchmark it! Ask a fiduciary like us with no conflicts of interest to perform the benchmark.

Start off 2023 right. Review your plan’s employee benefit role and benchmark it using an independent third party fiduciary – we’re happy to help. It’s an easy and fast process which we can do remotely or in person. You will reduce your oversight liability by benchmarking regularly and documenting your actions. 

We can be reached at [email protected], oreillywealthadvisors.com,