When you work a job, you are entitled to many benefits including a retirement plan. Often, this is a 401(k) retirement plan. If you’ve never set up a 401(k), you should know what complications may arise so you can prepare for them. 

Administrative Requirements 

Before you can reap the benefits of a 401(k) plan, you need to first meet all the qualifications. Some of these qualifications are simple. In general, you need to be 21 years old or older in order to be put on a company’s 401(k) plan. However, things get more complicated from there. Some businesses will require that you work for at least one year before you can qualify for the plan. 

This can either be counted as you working exactly 365 days or you being at the company for 365 days regardless of how many you actually worked. Depending on the employer contributions made to your plan, you might need to work two years before getting a 401(k) plan. All these qualifications and requirements make it more complicated just to get started. 

Non-Discrimination Testing 

401(k) plans are meant to provide people with a means of saving money for their retirement. Many laws are put in place in order to make this fair. For example, plans have contribution limits and once you max out your contributions for the year, you can’t add more to your account. 

Another way things are made fair is through non-discrimination testing. This testing makes sure highly-compensated employees (HCEs) aren’t disproportionately benefited and that everyone is equally and fairly being compensated. Non-discrimination testing can make it harder to set up your plan. Safe harbor plans can help you resolve discrimination issues in your plan.

Understanding Contributions 

A 401(k) plan can work differently for everyone. You have options for how much you will contribute and it can be complicated to understand the whole process. Understanding the contributions you will make is step one. Each plan has limitations on what you can contribute and the exact amount changes from year to year. It is your choice how much you will actually contribute. Some sources recommend contributing 10-20% of your salary. You may also want to contribute up to what your employer will match. Some people even choose to max out their accounts each year. Before you get started, you need to know what the best option for you is. 

It can be difficult to get your 401(k) started, but if you know what to expect then things can be easier. Having a 401(k) is a great way to prepare yourself for retirement. You just need to get the ball rolling. 

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As we approach the end of another year, it’s time to start thinking about resolutions for the New Year. For business owners, there are a few things that should be on your list. 

Here are three resolutions that you should make to help your business grow in the coming year.

Grow Your Customer Base

Now that the New Year is here, it’s the perfect time to set business resolutions and make an action plan on how to achieve them. If you’re looking to take your business to the next level, a great place to start is by focusing on growing your customer base. This could mean expanding into new markets, running targeted ads, improving your reach through digital marketing strategies, or simply leveraging existing customers for referrals and reviews. 

Whatever direction you decide to go in, there are definite benefits that come from expanding and engaging with more customers—namely increased revenue and insights into crafting even better products or services. A resolution this year should include taking steps to grow your customer base and tap into more opportunities for expansion.

Create a New Vision

As the New Year approaches, it’s the perfect time for business owners to evaluate their current objectives and resolutions. One resolution that could help ensure success in the coming year is to create a new vision for your business. Thinking big doesn’t necessarily have to go hand-in-hand with grand-scale change. 

Sometimes, even small changes can effectively turn around a business. While 1% improvements may seem small, they can produce exponential change. Having a clear vision will equip you with the right frame of mind to carefully consider and make better decisions, ultimately yielding positive results and helping you achieve excellence in the upcoming year.

Introduce a New Product or Service

As we move into the New Year, it’s a great time to reflect on how to help your business continue to grow and further engage with customers. Introducing a new product or service can be an effective way to stay ahead of the competition. Not only can you match customer demands by providing niche offerings, but you can also create additional revenue streams for increased profits. Thinking outside the box and adding something new and innovative could add that special spark of creativity to your business. Relationships established through such creative endeavors will only forge stronger connections with customers and open up numerous opportunities for continued success.

There is no time for setting goals like the New Year, both for yourself and your business. To keep your business ahead, you need to know where to focus. Keep these three resolutions in mind for your business this New Year.

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