Q4 2022: ADAPTING TO CHANGE EDITION

Posted on by Jerome.Pfeffer

As 2022 ends, it is time to shift your focus to optimizing your workplace and workforce. The future looks toward powerful partnerships between employers and service providers, successful financial wellness programs and smooth 401(k) plan transitions.

Get excited for the Q4 2022 Newsletter: Adapting to Change Edition.

Jerome Pfeffer, CRC, AIF

Managing Director

INVESTMENT SOLUTIONS GROUP

6020 Academy NE, Suite 206

Albuquerque, NM  87109

(505) 888-4015 Direct

(505) 515-0036 Fax

Jerome.Pfeffer@lpl.com

www.investmentsolutionsgroup.com

Securities and Advisory Services Offered Through LPL Financial. A Registered Investment Adviser. 

Member FINRA / SIPC.

This information was developed as a general guide to educate plan sponsors and is not intended as authoritative guidance or tax/legal advice. Each plan has unique requirements, and you should consult your attorney or tax advisor for guidance on your specific situation.

©401(k) Marketing, LLC.  All rights reserved. Proprietary and confidential. Do not copy or distribute outside original intent.

7 EMPLOYER CONSIDERATIONS FOR A REWARDING WORKPLACE RETIREMENT PLAN

Posted on by Jerome.Pfeffer

Do you want to get the most out of your retirement plan?

A plan should benefit both the employer and employees. It’s important to review your plan regularly to learn if more efficient plan design options available.

Here are 7 considerations for a rewarding workplace retirement plan.

Jerome Pfeffer, CRC, AIF

Managing Director

INVESTMENT SOLUTIONS GROUP

6020 Academy NE, Suite 206

Albuquerque, NM  87109

(505) 888-4015 Direct

(505) 515-0036 Fax

Jerome.Pfeffer@lpl.com

www.investmentsolutionsgroup.com

Securities and Advisory Services Offered Through LPL Financial. A Registered Investment Adviser. 

Member FINRA / SIPC.

This information was developed as a general guide to educate plan sponsors and is not intended as authoritative guidance or tax/legal advice. Each plan has unique requirements, and you should consult your attorney or tax advisor for guidance on your specific situation.

©401(k) Marketing, LLC.  All rights reserved. Proprietary and confidential.  Do not copy or distribute outside original intent.

BUILD A 401(K) DREAM TEAM WITH THE POWER OF PARTNERSHIP

Posted on by Jerome.Pfeffer

Leverage service providers to help your 401(k) plan run more smoothly.

As a retirement plan sponsor, you are a valuable member of a team that includes your recordkeeper, third party administrator (TPA), financial wellness provider and retirement plan advisor. Each member must uphold their roles and responsibilities to maintain a stable and well-standing retirement plan. Much like a table, if one leg fails to support it, you may find yourself with a mess on your hands.

Your retirement plan service providers can help support critical functions such as recordkeeping, plan design, compliance, administration, participant education, investment selection, management and monitoring — all while keeping costs reasonable.

To be sure, partnering with a team of supportive, knowledgeable providers has the potential to contribute to the success of your 401(k) plan and make your life easier.

The Benefits of Partnership  

Many plan sponsors opt to outsource to a small but mighty team of partners for support with various duties, from plan governance and administration to investment management and financial wellness. Depending upon the provider, some responsibilities may overlap. For instance, some recordkeepers have responded to the financial uncertainty of the past few years by offering emergency savings products that employers can provide as an employee benefit. In the past, these products were primarily in the hands of financial wellness providers.

Generally, however, plan sponsors can get the best “bang for their buck” by utilizing providers according to their strengths. For example, a TPA likely has expertise when it comes to compliance testing, while a recordkeeper may be more knowledgeable about integrating payroll systems and keeping tabs on key plan and participant data.

Partnering with external service providers can deliver several benefits for plan sponsors and participants including improvements in:

Keep in mind that outsourcing doesn’t absolve you or your retirement plan committee of fiduciary duties. Ultimately, you are responsible for ensuring that plan providers fulfill their responsibilities and deliver a level of value and service that’s worthy of their fees. That said, these partnerships can help lighten your load and allow you to focus on your core competencies while benefiting from solid partnerships with quality providers.

Who Does What?

In short, there is no cut-and-dried answer. Providers will have varying services and specialties in the areas of 401(k) plan management. In the case of redundancies, you may choose to assign specific responsibilities to the vendors you determine are the most qualified.

Generally speaking, here are some of the 401(k) plan responsibilities your recordkeeper, third party administrator, financial wellness provider and retirement plan advisor partners may take on in whole or in part:

Recordkeeper*

Third Party Administrator (TPA)*

Financial Wellness Provider*

Retirement Plan Advisor*

* This list is not a complete list. Contact your service provider for an accurate list of services provided to your plan. 

Building Your Dream Team

No two plans are alike, so your best bet may be to determine what works for your business and employees and make sure your provider partners deliver on those expectations. 

We help our clients evaluate their current service providers, the tools and technology they offer and the value they bring. If you have questions about how to optimize your plan provider partner relationships, we can help. Contact us for additional guidance and to learn more about partnership opportunities.

Jerome Pfeffer, CRC, AIF

Managing Director

INVESTMENT SOLUTIONS GROUP

6020 Academy NE, Suite 206

Albuquerque, NM  87109

(505) 888-4015 Direct

(505) 515-0036 Fax

Jerome.Pfeffer@lpl.com

www.investmentsolutionsgroup.com

Securities and Advisory Services Offered Through LPL Financial. A Registered Investment Adviser. 

Member FINRA / SIPC.

This information was developed as a general guide to educate plan sponsors and is not intended as authoritative guidance or tax/legal advice. Each plan has unique requirements, and you should consult your attorney or tax advisor for guidance on your specific situation.

©401(k) Marketing, LLC. All rights reserved. Proprietary and confidential. Do not copy or distribute outside original intent.

2023 CONTRIBUTION LIMITS

Posted on by Jerome.Pfeffer

The new Retirement Plan Contribution Limits are official!

The following limits are going up for 2023:

Review the full list of contribution limit changes below and share with your plan participants!

4 SIMPLE STEPS TO UNDERSTAND THE TRANSITION TO A NEW 401(K) RECORDKEEPER

Posted on by Jerome.Pfeffer

Learn what to expect when changing recordkeepers to avoid unpleasant surprises.

Change can be exciting but is sometimes stressful. However, transitioning to a new 401(k) recordkeeper shouldn’t be a taxing experience. In this article, we’re going to talk step-by-step through the events that may take place and provide inside knowledge about what to expect, so there are few surprises for you. With our clients, we have found that when they are properly prepared for the events ahead, everyone experiences a smooth recordkeeper transition process.

Step 1 | Recognition 

Congratulations! Recognizing the need for change is the first step toward finding a solution. In this case, you have decided to move to a new retirement plan recordkeeper. Chances are, you have evaluated a few different options, then based on your plan’s needs, you selected the best one.

To officially begin the relationship, your new recordkeeper will request New Business Paperwork. That typically involves:

Those are the initial documents needed to move forward and begin the transition process.

Step 2 | Review

Once all the above documents are received, your recordkeeper relationship manager will review them and confirm that the information is in good order. Typically, this process takes a few days to a couple of weeks, depending upon how quickly the documents are received and reviewed.

Keep in mind that this is an opportune time to make changes to your current retirement plan. For example, if you have been thinking about auto-enrollment, auto-escalation, plan design changes, force-out provisions or other adjustments, now is the ideal time to discuss them and update your plan prior to implementation.

Step 3 | Setup

There are four important functions going on during this time:

  1. Payroll. The new recordkeeper will walk your team through the process of uploading and submitting payroll. If not already provided, they will most likely ask for a company census to assist with the initial upload.
  2. Transfer of assets. By now, your former recordkeeper has been informed that your plan is moving to a new recordkeeper. The formal process is begun by sending a Liquidation Request letter to your former recordkeeper. Most recordkeepers have a department that specializes in transfers. Your new department will work together with your old one to coordinate the transfer of assets. Then, the next step is to distribute a Blackout Notice to your employees, which notifies them that for a window of time (usually between 3 – 10 days), they will not be able to make any changes to their retirement plan account. This is when the entire plan’s assets are in motion (meaning being transferred).
  3. Account openings. Your participants accounts are opened on the new recordkeeper’s system. These accounts are not funded at this time because the assets are in transit. Once the assets are transferred, your participants will see the same accrued account balances.
  4. Enrollment meetings. Let’s get excited: it’s time to enroll and educate your employees about the new recordkeeper and the opportunity to share details of any new capabilities. These may include online tools, financial wellness resources, income projections and more. Depending upon how the plan is setup and potential enhancements to design features, meetings are a way to inform employees about how you are helping them on their savings journey toward retirement.

Also, remember to communicate with former participants. They are still active members of the plan and need to be informed of changes.

Step 4 | Completion

The plan conversion is nearly complete. The last steps include the transfer of assets, followed by the confirmation that everything has been successfully transferred and allocated into the correct participant accounts. The final stage effectively ends the Blackout Notice period, meaning your plan participants can view their account balances and make investment changes.

Going forward, all new payroll uploads will happen on the new recordkeeper’s platform, and your dedicated relationship manager will be available for questions, comments and ongoing support.

In This Together

For our clients, we aim to provide clarity and consistent communication throughout the recordkeeper conversion process. We realize that this is outside the normal course of business, which is why we are here to guide you step-by-step through the process. Changing retirement plan recordkeepers can be stressful, but we have found that when our clients are prepared beforehand, the process is much more effective, making the conversion a win-win-win process for you, your business and your employees.

Jerome Pfeffer, CRC, AIF

Managing Director

INVESTMENT SOLUTIONS GROUP

6020 Academy NE, Suite 206

Albuquerque, NM  87109

(505) 888-4015 Direct

(505) 515-0036 Fax

Jerome.Pfeffer@lpl.com

www.investmentsolutionsgroup.com

Securities and Advisory Services Offered Through LPL Financial. A Registered Investment Adviser. 

Member FINRA / SIPC.

This information was developed as a general guide to educate plan sponsors and is not intended as authoritative guidance or tax/legal advice. Each plan has unique requirements, and you should consult your attorney or tax advisor for guidance on your specific situation.

©401(k) Marketing, LLC. All rights reserved. Proprietary and confidential. Do not copy or distribute outside original intent.

8 CREDIT BUILDING TIPS FOR THE MODERN AMERICAN

Posted on by Jerome.Pfeffer

Credit is your financial reputation. It shows financial organizations how reliable you are when re-paying money or following through with terms of a contract. 

The quality of your credit can impact:

Attaining good credit score shouldn’t intimidate anyone. Here are some helpful tips to build and repair credit for long lasting impact. 

Jerome Pfeffer, CRC, AIF

Managing Director

INVESTMENT SOLUTIONS GROUP

6020 Academy NE, Suite 206

Albuquerque, NM  87109

(505) 888-4015 Direct

(505) 515-0036 Fax

Jerome.Pfeffer@lpl.com

www.investmentsolutionsgroup.com

Securities and Advisory Services Offered Through LPL Financial. A Registered Investment Adviser. 

Member FINRA / SIPC.

This information was developed as a general guide to educate plan sponsors and is not intended as authoritative guidance or tax/legal advice. Each plan has unique requirements, and you should consult your attorney or tax advisor for guidance on your specific situation.

©401(k) Marketing, LLC.  All rights reserved. Proprietary and confidential.  Do not copy or distribute outside original intent.

5 FINANCIAL WELLNESS TIPS YOUR EMPLOYEES WILL THANK YOU FOR

Posted on by Jerome.Pfeffer

A financial wellness program can be an extremely valuable benefit, learn how it can help employees reduce stress while improving workplace productivity

Financial wellness programs are becoming an important benefit for companies of all sizes. In 2021, almost half (46%) of all employers offered financial wellness programs, up from 40% in 2020. Additionally, interest from the workforce had only increased as they assessed how their finances were impacted due to the COVID-19 pandemic.[1]

The primary focus of a financial wellness program is to provide education and resources to help employees better manage their finances and reduce related stress. A recent survey found that 60% of workers were concerned about their current level of debt, adding to their financial stress. Employees are seeking opportunities to improve their well-being, and many are interested in benefits like access to a financial professional (56%), financial planning tools (62%) and financial education (54%).[2]

What’s in a Financial Wellness Program?

Companies can offer a variety of financial topics to assist employees. Financial wellness programs should address every aspect of a participant’s life while offering support around:

Addressing each of these components can be accomplished in several ways, including regular employee meetings and providing financial how-to materials from reputable sources. Setting up access or classes with a financial advisor is a good first step to address a wide range of financial topics.

Tips for Building a Powerful Program

Here are 5 key recommendations to help plan, implement and maintain a powerful financial wellness program:

  1. Prioritize employee needs. Understanding the specific hurdles your employees face is an important step toward providing the resources and education when they need it.
  2. Empower employees. Provide support for employees at every stage of their savings journey so they can keep control of their financial futures and work toward retirement goals.
  3. Provide education. To encourage good financial habits, provide education to employees that helps assess their current situation and plan for what’s next.
  4. Diversity matters. A workforce is often a unique blend of genders, ages and backgrounds, so it is important to adapt support and education to address individual needs.
  5. Think digital. Employees are increasingly more comfortable using digital apps, which can be useful in keeping employees engaged and empowered.

Different Strokes

Each of your employees are in different stages of their savings journey. For example, when it comes to retirement readiness, many workers fall into two categories: “undersavers” (not saving enough for retirement) or “oversavers” (those who have saved enough to achieve financial goals but are still working, saving and limiting expenditures). Ensuring you have financial wellness initiatives in place that address the specific and unique needs of a wide spectrum of savers is a key component of any financial benefits program.

More Than a “Feel-good” Benefit

While employers may consider starting a financial wellness program because it’s the right thing to do, it’s more than just a “feel-good” benefit. Helping employees reduce their personal financial stress can also have a number of positive impacts on the overall workplace. Each week, workers spend an average of 9.2 hours addressing their personal finances while at work. Improving employees’ financial well-being could have a positive ripple effect:[3]

Overall, employers of all sizes can implement some aspect of a financial wellness program to help employees reduce financial stress, improve personal well-being and get on the path toward financial security. We are here to help when you are ready to discuss your retirement plan needs and its financial wellness strategy.

Jerome Pfeffer, CRC, AIF

Managing Director

INVESTMENT SOLUTIONS GROUP

6020 Academy NE, Suite 206

Albuquerque, NM  87109

(505) 888-4015 Direct

(505) 515-0036 Fax

Jerome.Pfeffer@lpl.com

www.investmentsolutionsgroup.com

Securities and Advisory Services Offered Through LPL Financial. A Registered Investment Adviser. 

Member FINRA / SIPC.

This information was developed as a general guide to educate plan sponsors and is not intended as authoritative guidance or tax/legal advice. Each plan has unique requirements, and you should consult your attorney or tax advisor for guidance on your specific situation.

©401(k) Marketing, LLC. All rights reserved. Proprietary and confidential. Do not copy or distribute outside original intent.


[1] Bank of America. “2021 Workplace Benefits Report.” 22 Sept. 2021.

[2] Franklin Templeton. “Voice of the American Worker.” 2 Feb. 2022.

[3] SoFi. “The Future of Workplace Financial Well-being.” 30 Mar. 2022.

Q3 2022 NEWSLETTER: OPTIMIZING SAVINGS STRATEGIES

Posted on by Jerome.Pfeffer

Use these insights and help optimize your 401(k) plan to align with savings and talent management strategies.

Jerome Pfeffer, CRC, AIF

Managing Director

INVESTMENT SOLUTIONS GROUP

6020 Academy NE, Suite 206

Albuquerque, NM  87109

(505) 888-4015 Direct

(505) 515-0036 Fax

Jerome.Pfeffer@lpl.com

www.investmentsolutionsgroup.com

Securities and Advisory Services Offered Through LPL Financial. A Registered Investment Adviser. 

Member FINRA / SIPC.

This information was developed as a general guide to educate plan sponsors and is not intended as authoritative guidance or tax/legal advice. Each plan has unique requirements, and you should consult your attorney or tax advisor for guidance on your specific situation.

©401(k) Marketing, LLC.  All rights reserved. Proprietary and confidential.  Do not copy or distribute outside original intent.

VIDEO: ADVANTAGES OF RETIREMENT PLAN AUTO FEATURES

Posted on by Jerome.Pfeffer

With certain 401(k) automatic features turned on, you can allow your employees to save more while lightening your administrative workload.

Advantages:

See how these features fit into your workplace for streamlined administration and enhanced retirement plan savings.

Jerome Pfeffer, CRC, AIF

Managing Director

INVESTMENT SOLUTIONS GROUP

6020 Academy NE, Suite 206

Albuquerque, NM  87109

(505) 888-4015 Direct

(505) 515-0036 Fax

Jerome.Pfeffer@lpl.com

www.investmentsolutionsgroup.com

Securities and Advisory Services Offered Through LPL Financial. A Registered Investment Adviser. 

Member FINRA / SIPC.

This information was developed as a general guide to educate plan sponsors and is not intended as authoritative guidance or tax/legal advice. Each plan has unique requirements, and you should consult your attorney or tax advisor for guidance on your specific situation.

©401(k) Marketing, LLC.  All rights reserved. Proprietary and confidential.  Do not copy or distribute outside original intent.

3 TIPS TO BUILD AND RUN A SUCCESSFUL RETIREMENT PLAN COMMITTEE

Posted on by Jerome.Pfeffer

If you are looking for ways to improve fiduciary oversight and strengthen your company’s retirement plan, a committee is one of the best places to start. A committee is responsible for the fiduciary oversight of your retirement plan by determining plan administration, investment offerings, costs and enhanced features.

There are fundamental building blocks to running a great committee. Download the guide below to see how it works.

Jerome Pfeffer, CRC, AIF

Managing Director

INVESTMENT SOLUTIONS GROUP

6020 Academy NE, Suite 206

Albuquerque, NM  87109

(505) 888-4015 Direct

(505) 515-0036 Fax

Jerome.Pfeffer@lpl.com

www.investmentsolutionsgroup.com

Securities and Advisory Services Offered Through LPL Financial. A Registered Investment Adviser. 

Member FINRA / SIPC.

This information was developed as a general guide to educate plan sponsors and is not intended as authoritative guidance or tax/legal advice. Each plan has unique requirements, and you should consult your attorney or tax advisor for guidance on your specific situation.

©401(k) Marketing, LLC.  All rights reserved. Proprietary and confidential.  Do not copy or distribute outside original intent.

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