Stay Ahead with a Mid-Year 401(k) Audit

Mid-Year: The Perfect Time for a 401(k) Plan Check-In

Time flies, and here we are, midway through the year! It's an excellent opportunity to revisit and refine your company's 401(k) plan. Performing a mid-year check-in allows you to evaluate the plan's effectiveness and make necessary adjustments before the year-end deadlines approach. Such proactive measures ensure the plan aligns with your company's goals and supports employee financial wellness.

Assess Participation Rates

Begin your check-in by reviewing the participation rates. How many employees are contributing to the plan? Look for trends in participation and strategize on ways to increase engagement if needed. Consider education campaigns or enhancing employer-matching incentives to encourage more employees to enroll and actively participate.

Evaluate Contribution Levels

Take a closer look at the contribution levels. Are employees maximizing their contributions to take full advantage of employer matches? Now is the time to tweak contribution strategies, which can lead to stronger retirement outcomes for your employees. Ensuring employees are informed about the benefits of maximizing contributions can make a significant difference in their financial futures.

Ensure Compliance

It's crucial to ensure your 401(k) plan complies with regulatory requirements. Failing compliance can lead to penalties and complications later in the year. Identify common pitfalls and address them now to avoid these issues. Staying ahead of compliance ensures smooth operations and protects the plan's integrity.

Assess Competitiveness

How does your 401(k) plan stack up against industry standards? Conduct benchmarking analyses to assess its competitiveness. Ensuring the plan is attractive can be a powerful tool in recruiting and retaining top talent. Competitive plans contribute to a positive workplace environment where employees feel valued and supported.

Stay Proactive and Prevent Last-Minute Issues

A mid-year check-in is more than a routine exercise; it's a strategic move to keep your retirement plan on track. Early adjustments can prevent last-minute issues, ensuring that the plan works effectively for your business and supports the financial well-being of your employees. This proactive approach sets the stage for a successful year-end closeout when it comes to retirement planning.