Latest news with #SummaryPlanDescription
Time Business News
15-07-2025
- Health
- Time Business News
Five Tips for Seamless ERISA Compliance
It can be quite scary navigating through complying with ERISA requirements, as you have to take care of deadlines, deal with a lot of documentation, interact with employees, make sure that they are aware of their rights, and feel threatened by the heavy fines that can be imposed on you. Here are some ways that you can make sure your company is following the rules and does not get stuck in any unwanted compliance issues. Many documents update employees on their rights and allow them to know what benefits they are getting, such as how the costs are being shared, the medical tests and procedures that the company will cover and the list of preventative services they will provide, and the list of new or existing drugs, amongst many other things. These documents are comprehensive, and participants have a right to know if there have been any changes made to them. So, as an employer, it is your right to update participants of changes made in a timely manner. These documents include the Summary Plan Description (SPD) that highlights the details of the benefits the employees will be receiving and whether they are eligible for them. The Summary of Benefits and Coverage (SBC) document covers all the health rights that the employees will be given. The HIPAA privacy notice informs employees about how their health information is being utilized. The Children's Health Insurance Program (CHIP) Notice explains how the company can aid your children. Employers also need to submit reports to the Department of Labor annually and on time. If they fail to do so, it will result in complications against the business as the DOL can penalize you for late submission of these documents. If you fail to provide any of these documents, the Department of Labor can charge you. It can charge $195 daily for failing to provide SPD, $145 daily for not providing CHIP, and $1443 in the case of a SPD, which is why ERISA compliance is essential. All these penalties can add up to a huge amount that will only affect your company negatively. Make yourself prepared for the audit by understanding the process fully and keeping all the documents in one place. You should also train your HR professionals for this and ensure that those in the benefits teams fully comprehend the importance of ERISA and what its compliance requires from the company. Also, work with your legal advisors and auditors to make sure that you have all the necessary documents and procedures in place. Here are the documents that you should keep prepared: 01k and employee benefits regulation: Family and Medical Leave Act (FMLA) compliance, Employee Retirement Income Security Act (ERISA) compliance, Employee timekeeping, Wage and hour compliance, Child labor law compliance, Wage deduction processes, and Accurate payroll and recordkeeping. Regularly update all the employees about any changes in the documents and inform them about the rights they have. If they are planning to invest, explain to them their choices fully and completely so that they can know the risks that come with their investments, as they have a right to know where their money is going and how it will be used. The process of compliance with ERISA may seem overwhelming and overburdening, but it does not have to be like that if you have a team that focuses on ensuring regulations by timely filing forms and telling employees about changes in documentation. Since it is not a one-time thing, but rather an ongoing process that you have to keep up with regularly, you will have to ensure that your compliance policy also evolves and adapts. TIME BUSINESS NEWS
Yahoo
11-04-2025
- Business
- Yahoo
Is this the No. 1 401(k) move for 2025?
If you're watching the markets in 2025 and feeling uneasy, you're not alone. Recent tariffs announced between the U.S. and China – along with retaliatory measures – have rattled investor confidence and pushed major indexes into correction territory with the S&P having the worst quarter since 2022. The headlines scream uncertainty, portfolios are flashing red, and it's natural to wonder if now is the time to retreat or lean in and make a bold move. But, what if this dip presents a golden opportunity? Specifically, could frontloading your 401(k) right now be one of the smartest financial moves you make this year? Frontloading means contributing a significant portion – or even the entirety – of your annual 401(k) limit early in the year, rather than spreading it out evenly over each paycheck. For 2025, the IRS allows up to $23,000 in contributions (or $30,500 if you're 50 or older). Here's What Trump Is Really Up To With High-stakes Tariff Gambit Instead of monthly contributions, you might hit the cap by spring – locking in more shares while the market is still down. If you have money in the bank to pay your bills, there could be a brilliant time to rob Peter to pay Paul and put more in your 401(k) while prices are cheaper. Read On The Fox Business App 1. You're Buying While It's On SaleWith markets down thanks to tariff-fueled volatility, prices on stocks and index funds are lower than they've been in months. Especially in technology. Frontloading lets you scoop up more shares for the same dollar, positioning you to benefit when the market eventually rebounds. 2. Time in the Market Beats Timing the MarketBy getting your money in earlier, you give those dollars more time to grow. Compounding works best with time on your side, and historically, markets bounce back – often when investors least expect it. This is what helps the "snowball" effect. 3. It Takes the Emotion OutIt's hard not to let emotions cloud your decisions during turbulent times. Frontloading is a way to make a strategic move and then let the market do its thing, without constantly second-guessing yourself throughout the year. 1. You Could Miss the Employer MatchSome companies only match contributions per pay period. If you max out early, you might leave employer dollars on the table for the rest of the year. It's important to read the company Summary Plan Description (SPD) to see how your plan handles matches before frontloading. 2. You Might Not Be Catching the BottomMarkets can always fall further. Frontloading doesn't guarantee you're buying at the lowest point, and there's a chance your investments dip more before they rise. If the tariff war continues, this could send markets further down this year before they rebound. 3. Cash Flow Can Get TightFrontloading requires having the flexibility to take a hit to your take-home pay early in the year. If that's going to put stress on your budget or force you to dip into savings, it might not be worth it. Click Here To Read More On Fox Business If going all-in feels too aggressive, consider a partial frontload. Increase your contributions for the next few months while prices are still down, then return to your regular pace. This gives you some upside potential while keeping cash flow manageable. It's easy to get spooked when the market drops. But often, the best financial moves are made when things feel uncertain. If your budget allows and your plan supports it, frontloading your 401(k) in a down market – especially one driven by temporary shocks like tariffs – might just be the best financial move you make in 2025. Click Here To Read More From Ted JenkinOriginal article source: Is this the No. 1 401(k) move for 2025?
