Most types of financial accounts allow you to designate a beneficiary, from checking and savings accounts to life insurance policies, 401(k)s, IRAs, pensions, and trusts. But when was the last time you looked at your beneficiary designations across all your accounts? Do you know which of your accounts have beneficiary designations and which ones do not?
Defined Contribution Plans Plus
For employers who have taken on the responsibility of offering sponsored retirement plans such as 401(k), profit sharing, or defined benefit plans, the task is not as simple as just presenting the plan. They need to gather extensive employee census information yearly, and one term that frequently comes up in these discussions is “Highly Compensated Employee” or HCE. But what does being an HCE mean, and why is it important to understand this classification?
401(k) Options for Small Business Owners
Regardless of the business’s size, small business owners have 401(k) retirement savings plan options that may be suitable for their situation. Business owners must plan for retirement by utilizing retirement savings vehicles that may provide them with common IRS tax savings incentives when funding specific 401(k) options.