HealthEquity blog

Why employees leave and how to keep them using a health and wealth strategy

Posted by HealthEquity on Sep 25, 2018 8:30:00 AM

Since the inception of the employer-employee relationship there has been employee turnover. Every employer knows that turnover is inevitable and have factored in the costs into the price of doing business.

One way to lengthen tenure among your workforce is an effective health and wealth strategy, which introduces a long-term partnership where both employers and employees are mutually invested in growing wealth and improving health through knowledge, savings and investing.

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Topics: HSA, Employers, tax savings, retirement, 401(k), HSA contributions

What are the differences between a 401(k) and a SIMPLE retirement plan?

Posted by HealthEquity on Jul 18, 2018 4:40:00 PM

Companies moving from a SIMPLE IRA to a 401(k) plan are usually seeking some additional flexibility and have outgrown their current SIMPLE plan. The questions arise: What is a SIMPLE retirement plan? And how is it different from a 401(k)?

SIMPLE is an acronym for a Savings Incentive Match Plan for Employees. There two SIMPLE plans, SIMPLE IRA and SIMPLE 401(k). Both are tax-deferred retirement plans provided by employers. The goal of a SIMPLE plan is similar to other retirement plans: to allow employees a simple way to save and invest money for retirement. We’ve outlined a few of the basics of SIMPLE and traditional 401(k) plans to highlight some important similarities and differences.

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Topics: retirement, 401(k), Financial Advisors

The lowdown on 401(k) plan audits

Posted by HealthEquity on Jun 13, 2018 4:03:00 PM

Have you ever had to endure a 401(k) Audit? For most plan sponsors, they are not a pleasant experience. We're not referring to being audited by the DOL or IRS, we're referring to the annual audit attached to Form 5500 that is required for “large plans”. Plan sponsors dread the annual audit because of the time, effort, energy, and cost required. But it doesn’t have to be that way.

In an effort to alleviate the pain caused by the annual 401(k) audit, we have prepared a few pieces of information that you should know about these audits. If you take advantage of even a couple of these, you will have a better experience moving forward.

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Topics: retirement, 401(k), Financial Advisors

A simple guide to 401(k) testing

Posted by HealthEquity on Jun 11, 2018 11:17:00 AM

The 401(k) industry is a complex mixture of rules and regulations that are written and enforced by numerous government entities. Due to this arrangement, there are a lot of complications that can arise. Every year, 401(k) plans around the country are subject to government non-discrimination and coverage testing. Because the Federal Government offers substantial tax benefits with the 401(k) plan, they want to ensure that owners, executives, highly-compensated, and key employees aren’t unduly benefited from the plan compared to all other employees.

Failing an annual test may result in possible refunds, fines, and tax penalties. It is vital that an employer understands how the testing works to better fulfill fiduciary responsibilities. Below, we’ve outlined the most common tests that are performed each year.

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Topics: retirement, 401(k), Financial Advisors

The 3(21) named fiduciary

Posted by HealthEquity on May 23, 2018 3:28:00 PM

In the 401(k) marketplace, you will occasionally find separate companies that will sign onto your 401(k) plan in the role of 3(38) Investment manager, and even 3(16) Plan Administrator. However, when sponsors use these separate companies without a Named Fiduciary, their combined plan services often become fragmented and expensive.

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Topics: retirement, 401(k), Financial Advisors

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