An AARP study found that 47% of American workers in 2022 were employed by a business that does not offer any type of retirement plan. They also found that Americans are 15 times more likely to save for retirement when they have a workplace plan and 20 times, when the contributions are automatic. With such a low rate of employees saving for their retirement, many states are looking at closing that gap through state-facilitated programs and mandating employers in their state to offer a retirement plan. If you are an employer who does not have a retirement plan, such as…
Posts tagged as “Pension”
Most years, the only thing we have to worry about when it comes to retirement plan administration is adjusting for the cost-of-living increase to contribution limits. Some years we don’t even have that, but this year is an exception with that, plus major changes you will need to make and consider. So first, the easy stuff. The cost-of-living increase, to the maximum amount an individual can contribute to their 401(k), 403(b), governmental 457 and the Thrift Savings plans, will be increased to $23,500, up from $23,000 in 2024. The catch-up contribution will remain at $7,500 and the limit on annual…
There is a direct correlation between the size of an employer’s workforce and the likeliness of their offering a retirement plan. While about 92% of companies having greater than 10,000 employees offer a 401(k)-style plan, those with under 10 employees, the rate drops to 8%. The flip side is that 86% of employers do not offer a plan, which translates to about 68 million Americans without access to a employer-sponsored plan, and states have taken notice. Beginning in 2017, a number of states have implemented laws requiring smaller businesses to implement a plan with many more in the legislative proposal…