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Resources

Hey Joel! – Answers from a recovering former practicing ERISA attorney

Welcome to Hey Joel! This forum answers plan sponsor questions from all over the country by our in-house former practicing ERISA attorney. Hey Joel, What’s the appropriate number of members and positions for a retirement plan committee? – Plannin’ in Pennsylvania Dear Plannin’, There is no specific guidance on the appropriate number of committee members. It’s important to have committee members who can contribute to the topics to be focused on. When there is one committee, as opposed to…

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How many Investment Options Should You Offer?

Many plan sponsors struggle with deciding how many investment options to offer in their retirement plans. While people generally like to have lots of options when making other decisions, having too many plan options can potentially lead to poor investment decisions by plan participants. In addition, increasing plan options can also increase plan costs, as well as the administrative paperwork associated with the plan. In a study on retirement plan options, researchers concluded that it is possible to present…

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Four Ways to Increase Employee Retirement Contributions

Michael Viljak, Manager, Advisor Development As a retirement plan sponsor, you want your employees to save the most they can in order to reach their maximum retirement potential. A significant amount of research says that you can improve both employee participation and their saving rates. Here are four ways you can help your employees start building a confident retirement: Boost employee participation with automatic enrollment. Choosing to automatically enroll all new employees in your retirement plan can dramatically improve…

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Staying the Course

Covid-19 Market Crash

“Stay Calm” is the advice from Pat Zumbusch, Wellspring’s Founder and CEO. “Unless something dramatic has changed in someone’s life, then don’t let the current market volatility cause you to change your 30-year financial horizon and road map.” We have been here before. Coronavirus and Past Market Epidemics As of February 28, 2020, global stock markets have entered “correction” territory, defined as a 10% decline from the index high. This is in large part due to the uncertainty surrounding…

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The CARES Act

Below is a communication that Wellspring Financial Partners has prepared to help participants understand the potential relief available to them and their families through the recently signed CARES Act. Though the Act is 880 pages long, and not all items are perfectly clear from Congress, below are a few key provisions that could be of benefit to you. The CARES Act “Coronavirus Aid, Relief, and Economic Security Act” The CARES Act is the fiscal stimulus bill signed into law…

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Tips for Preventing Uncashed Retirement Checks

Managing uncashed retirement checks may be considered a nuisance by plan administrators. Nevertheless, the employer still has fiduciary responsibility when a former employee fails to cash their distribution. Search efforts to locate a missing plan participant consume time and money and may fail to locate the participant. Likewise, going through the process of turning over dormant accounts to the state can also consume time and resources. Decrease the burden of uncashed checks by: Discussing with terminating employees during the…

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Is Your Turnover Rate Routine? What You Need to Know About Partial Plan Terminations

A partial plan termination is presumed by the IRS to occur when 20 percent or more of a company’s employees are no longer eligible to participate in the plan in a determined span of time (typically one plan year, but it can be other spans of time based on facts and circumstances). Routine turnover during the year is generally not considered a partial plan termination. To determine whether your turnover rate is routine, consider the following factors: What was…

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Considering a Traditional Safe Harbor Retirement Plan?

It may be advantageous for a plan sponsor to consider adopting a traditional safe harbor design for their retirement plan. Adopting a safe harbor retirement plan design permits an employer to essentially avoid discrimination testing (the testing is deemed met). Remember, this testing limits highly compensated employees’ contributions based upon non-highly compensated employees’ contributions. By making a safe harbor contribution highly compensated employees can defer the maximum amount allowed by their plan and Internal Revenue Code limits, without receiving…

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How can I avoid becoming a victim of a social engineering scam?

Imagine that you receive an email with an urgent message asking you to verify your banking information by clicking on a link. Or perhaps you get an enticing text message claiming that you’ve won a free vacation to the destination of your choice – all you have to do is click on a link you were sent. In both scenarios, clicking on the link can accidentally result in revealing your sensitive personal and financial information to a cybercriminal. In…

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Is there any way to stop getting unwanted robocalls?

Whether it’s a helpful announcement from your child’s school or an appointment reminder from a doctor’s office, getting robocalls has become an everyday occurrence. Unfortunately, robocalls are also used by criminals to collect consumers’ personal and financial information and/or conduct various scams. The good news is that consumers have won additional protections against unwanted robocalls under the Telephone Robocall Abuse Criminal Enforcement and Deterrence (TRACED) Act. One of the main goals of the law is to make it easier…

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