Why Mid-Year is Perfect for a 401(k) Check-In

It’s hard to believe the year is already halfway through. With time flying by, now is an ideal moment for businesses to pause and evaluate their 401(k) retirement plans. Mid-year check-ins allow employers to assess if their plans are meeting company goals and contributing to employee financial wellness, well before year-end deadlines.

Review Participation Rates

Start by examining how many employees are currently enrolled in the 401(k) plan and identify any trends. If participation is lagging, this is an opportunity to implement strategies to boost employee engagement, such as launching educational campaigns or introducing employer-matching incentives.

Evaluate Contribution Levels

Review whether employees are contributing enough to take full advantage of the benefits, including any employer matches. Encouraging adjustments now can lead to significant improvements in employees' retirement funds, offering them stronger financial outcomes.

Ensure Compliance

Your 401(k) plan must meet all regulatory requirements to prevent penalties. Conduct a thorough compliance review to avoid any complications later in the year. Highlight and address common compliance issues to keep the plan running smoothly.

Assess Competitiveness of the Plan

Benchmark your 401(k) features against industry standards to ensure it remains attractive to current and potential employees. A competitive retirement plan can be a powerful tool for acquiring and retaining top talent. This can involve regular benchmarking and adjustments to maintain competitiveness.

The Importance of a Mid-Year Check-In

Revisiting your 401(k) plan mid-year allows for early detection and resolution of issues, preventing any last-minute rush to make changes. It’s a proactive approach that ensures your retirement plan is effective for both the business and its employees, aligning with financial and strategic goals.