Mid-Year 401(k) Check-In: Optimize Your Plan Now

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

As the months swiftly pass us by, it's crucial for employers to take a proactive approach to their 401(k) plans. Mid-year is an optimal time to assess and adjust your company's retirement plan, ensuring alignment with both corporate objectives and employee financial wellness before year-end pressures set in.

Evaluate Contribution Levels

Now is an excellent time to review whether employees are taking full advantage of contribution opportunities, including employer matching. Even small adjustments can significantly enhance retirement outcomes. Encourage your employees to revisit their contribution levels to maximize these benefits.

Review Participation Rates

Gather data on how many employees are actively participating in the 401(k) plan. Identify any trends and strategize ways to boost enrollment. Consider launching educational campaigns or enhancing employer-matching initiatives to increase engagement.

Ensure Compliance

Maintaining regulatory compliance is essential to avoid penalties and complications. Conduct a thorough review of your 401(k) plan to ensure it adheres to all legal requirements. Common pitfalls can often be addressed proactively with proper oversight and planning.

Assess Competitiveness

Leverage industry benchmarks to evaluate whether your plan's features remain competitive in attracting and retaining talent. Ensuring that your retirement offering is appealing can play a pivotal role in your overall talent management strategy.

Conducting a mid-year check-in on your 401(k) plan not only minimizes last-minute adjustments but also ensures your retirement benefits are effective for both your business and your employees. Make the necessary tweaks today to optimize your plan and set a strong foundation for the rest of the year.