Ceilings, floors, pivot points, etc. Technical levels don’t predict the future, but they can provide context for trends. In some cases, they can serve as cues for the next trend. For instance, if a key level is broken, it can be a cue for traders continue pushing in the direction of the breakout or a cue for traders to push back in the other direction. The bullish or bearish outcome often comes down to a key event or piece of data. With all of that in mind, 10yr yields are once again at their 2024 ceiling of 4.32%. Wednesday’s Fed announcement (and dot plot) is likely to determine if 4.32 ends up being reinforced as a ceiling or blamed as a technical trigger for additional selling.
The U.S. Department of Housing and Urban Development (HUD) on Monday announced that it would be bringing its Innovative Housing Showcase back to the National Mall in Washington, D.C., this June. The event is designed to highlights housing solutions and “advancements in housing design, technology and sustainability.”
Taking place on June 7-9, the event is open to the public and will offer an opportunity “to raise awareness of innovative and affordable housing designs and technologies that have the potential to increase housing supply, lower the cost of construction, increase energy efficiency and resilience, and reduce housing expenses for owners and renters,” HUD explained in a news release.
Coming on the heels of a new commitment to housing solutions as outlined by President Joe Biden during his State of the Union address earlier this month, the event is designed to highlight a wider effort by housing professionals and stakeholders to impact housing access, availability and sustainability. The event will also feature interactive exhibits, including full-sized prototype homes and other technology demonstrations.
HUD expects as many as 4,000 people, “including policymakers, housing industry representatives, media, and the public,” to attend the event across all three days.
“The Innovative Housing Showcase is a testament to our nation’s unwavering commitment to moving the housing sector forward,” HUD Secretary Marcia Fudge said in a statement. “The future of housing is innovative. The Showcase provides a unique opportunity to explore technologies that can make housing more affordable and more resilient, while bringing industry leaders and the public together on creative solutions to the challenges facing our communities.”
Technological advancement is key to improving housing across the country, which is why it’s important to highlight advancements in a public setting, according to Solomon Greene, principal deputy assistant secretary for policy development and research (PD&R) at HUD.
“HUD and its Office of [PD&R] have supported innovation in housing and building technologies since the beginning, and these investments have contributed to changes in building codes, improvements in industry practice, and most importantly, lower housing costs for American families,” Greene said. “The Showcase continues that tradition, featuring the latest technologies and designs that can help meet the nation’s growing housing affordability and climate resilience needs.”
HUD recently posted a notice in the Federal Register to solicit exhibitors for the event, with final applications due March 29. Exhibitors and other programming details are expected in May.
Home Depot customers will soon be able to shop the retailer’s most compelling savings for on-trend products in its online decor assortment during its first ever Decor Days event. From October 5-9, 2023, shoppers can enjoy significant savings on quality furniture, stylish home decor and more, available at HomeDepot.com/decor.
“Fall is the time of the year when customers start to get their homes ready for the busy holiday hosting season, and we know they will be looking to The Home Depot for project inspiration,” said Corinne Bentzen, general manager for home decor online. “We are hosting our first Decor Days event in early October to help our customers tackle their DIY and decor projects and find the perfect finishing touches at the right price.”
Exclusive Decor Days savings on national and proprietary brands including Home Decorators Collection, StyleWell and The Company Store, will be announced on September 20. Customers can look forward to offers including:
Up to 60% Off Area Rugs
Up to 50% Off Select Home Decor, Furniture, Lighting and Housewares
Up to 40% Off Bedding, Bath Fixtures, Vanities, Bath Linens and Mattresses
Up to 30% Off Wall Decor and more
“We’re committed to meeting our customers when, where and how they want to shop,” said Jordan Broggi, senior vice president and president – online at The Home Depot. “Today, over 60% of our sales are to customers who shop in multiple channels – they may start their research online, come into the store to shop in person, and then order project completers on our mobile app. Decor Days gives our customers an easy online shopping experience with everything they need for whole-home decor and styling ahead of the holidays.”
The Home Depot’s online destination for home decor offers a wide assortment of on-trend products at quality prices to fit any aesthetic. Features like shop by room inspiration and intent search, which produces narrowed, relevant search results catered to shoppers’ projects, make the online home decor shopping experience more frictionless.
Furthering The Home Depot’s dedication to a strong interconnected shopping experience, Decor Days customers can enjoy the retailer’s everyday free and flexible delivery on more than 10,000 online decor items and free and easy returns in-store or by mail.
To save on quality furniture and find stylish home accents at the right price, visit HomeDepot.com/decor.
When it comes to their kids, many of your employees may be willing to put their retirement on the line.
As HR pros focus on workforce planning, understanding the burden that college costs impose on most employees is a key component for successful financial wellness programs.
Paying for college is a daunting challenge, and even financially savvy parents can become overwhelmed and confused by the college financing process. That’s where employer-sponsored education efforts can help. Employers who understand the following common college financing traps can better plan programs to alleviate the stress of paying for college and improve financial wellness overall.
Trap One: Prioritizing Their Children’s Education Over Their Own Retirement
By now, it’s become a financial wellness mantra: Parents should prioritize their retirement savings before saving for or paying for a child’s college education. After all, the thinking goes, students can borrow for education costs, but parents can’t borrow money to pay for retirement. And if parents don’t properly prepare for retirement, their children may end up supporting them in their later years, jeopardizing their future finances.
But with ever-rising tuition costs and the increasing burden of student debt, it may be harder for your employees to follow that tried-and-true advice. The cost of college has more than doubled over the past four decades — and student loan borrowing has risen along with it. Americans collectively owe more than 1.7 trillion in student loan debt, according to the Federal Reserve .
Trying to ease the burden on their children, your employees may be raiding their future. Among people aged 25 to 80 who are saving for both retirement and future college expenses, 58% say they are delaying retirement, and 41% say they have withdrawn money from their own retirement funds to pay for a child’s (or other relative’s) tuition, according to a July 2023 survey by the Society of Actuaries .
When an employee delays retirement to catch up on missed retirement savings or pay off education loans, it can be costly to an organization. What’s more, if paying for college forces an employee to work longer than they want to, the result may be a less productive, less engaged worker.
Recommended: SoFi Survey: The Future of Financial Well-Being at Work
Trap Two: Mismanaging PLUS loans
Parent Loans for Undergraduate Students (PLUS loans) are underwritten by the federal government and allow families to borrow without the same credit checks and other limits imposed on other types of lending. Because these loans are in a parent’s name, your employees may naturally gravitate to them as a way to help their children avoid debt.
But there are drawbacks. Unlike federal student loans, there are no limits on the amount parents can borrow as long as it doesn’t exceed education costs. To qualify for a PLUS loan, parents need only pass a check for an “adverse event” such as a recent bankruptcy filing or foreclosure. There is no consideration of the borrower’s ability to repay the loan. Given the often astronomical costs of attending a four-year college, your employees may quickly find they have taken on more debt than they can comfortably handle.
In addition, PLUS loan interest rates, set by the government each year, are usually significantly higher than student-held federal loans (8.05% for 2023-2024 versus 5.50%) and sometimes higher than some private college loans.
If parents default or consolidate their PLUS loans, or if they receive a forbearance or a deferment, the interest that continues to accrue is capitalized. That means that principal and payments can become even more unaffordable for employees. In addition, if the loans go into default, the government can garnish wages, Social Security checks, and tax refunds.
Recommended: Preparing for College Resource Guide for Parents
Trap Three: Avoiding College Financing at All Costs
Another common mistake lurks on the opposite side of the spectrum. In an effort to avoid college debt of any kind, parents who have some, but not enough, college savings may decide to forego saving for retirement, dip into retirement savings, or use home equity to pay tuition bills as they come.
Withdrawing 401(k) savings can result in significant penalties, taxes, and, importantly, lost principal and earnings. Cash-out home refinancing can lead to higher and perhaps unaffordable mortgage payments. Even putting retirement savings on hold when the year’s tuition is due can translate into large gaps in savings goals, depending on the number and ages of children attending college.
These are all understandable mistakes. As we saw above, an overreliance on debt to pay college bills can seriously jeopardize financial well-being. But so, too, can dismissing the strategic use of financial aid and loans to finance college costs.
For instance, your employees may neglect filling out the Free Application for Federal Student Aid (FAFSA), figuring that they earn too much to qualify for federal financial aid. According to Sallie Mae’s How America Pays for College 2023 report, 71% of families filed the FAFSA for the 2022-2023 academic year, down from 86% in 2016-2017.
These parents may not realize that without the FAFSA, the student will not be awarded federal subsidized and unsubsidized loans, which can be attractive for their low rates and, in the case of subsidized loan, help from the government in paying interest.
More importantly, many schools require students to submit a FAFSA to be eligible for merit-based scholarships and grants, even though these funds are awarded according to the student’s academic record and other achievements, not financial need. Merit-based aid does not have to be repaid and is usually awarded to undergraduates for the full four years.
While too much debt is never smart, a prudent and affordable mix of well-structured student debt can help parents avoid sacrificing retirement savings, home equity, and other long-term savings to pay for college now.
Employer-sponsored college financing education and one-on-one college counseling can help ensure parents understand the complexities of financial aid and student borrowing so they can balance long-term and current financial needs and goals.
The Takeaway
Employers who help parents avoid these common college financing traps may help alleviate what is fast becoming one of the largest sources of financial stress in your workforce.
SoFi at Work can help with student loan repayment platforms, extensive education efforts, plus a lending suite of student, graduate student, MBA, and parent loans. For organizations that are looking to help their employees get ahead on their education financing goals, SoFi at Work also offers a 529 College Savings Program, which can be integrated into any payroll system.
Photo credit: iStock/Orbon Alija
Products available from SoFi on the Dashboard may vary depending on your employer preferences.
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President Joe Biden, in his ongoing crusade against hidden junk fees, has so far cracked down on event ticketing, airlines, financial companies and rental housing. The next target: junk fees at colleges and in student lending.
On Friday, the Biden administration announced several new actions to alleviate the burden of these superfluous fees. The most significant would be the elimination of origination fees for federal student loans — if it passes muster with Congress.
“We feel strongly that there are times where the American consumer is kind of played for a sucker,” says Neera Tanden, domestic policy advisor to Biden. “There’s a hidden fee or there’s some way in which a company or an entity is basically using its market power to make you pay a fee that you shouldn’t have to.”
Junk fees are the label given to the irksome and often surprise surcharges to what you’re already paying for. This includes things like credit card late fees, overdraft fees at banks, amenity and resort fees at hotels, service fees for event ticketing or food delivery, as well as seat selection fees on airlines. For over a year, the Biden administration has taken several actions to curb junk fees and surface hidden fees.
End student loan origination fees
On the student lending side, Biden would eliminate the student loan origination fee as part of his 2025 budget proposal.
Origination fees are the percentage of the loan amount that’s considered a processing fee. The fee ends up being tacked on to loan balances, which means borrowers would pay interest on the fee over the life of the loan. Origination fee rates range from 1% for undergraduate loans to 4% for graduate and parent PLUS loans.
Tanden, who spoke with NerdWallet in an exclusive interview, calls origination fees a “relic of the past” when private lenders originated student loans backed by the government, which hasn’t been the case since 2010 when the federal government began exclusively lending directly rather than guaranteeing loans made by private financial institutions. She adds that there’s no current rationale for it in federal student lending.
Borrowers collectively spend more than $1 billion annually on origination fees, according to a release by the administration. However, Biden can’t get rid of origination fees unless Congress approves it as part of the nation’s 2025 budget.
Tanden says she hopes the proposal will be treated as a nonpartisan issue. “We know that Republicans have welcomed ways to cut back on taxes for people,” she says. “This is really just a tax on student borrowing.”
If origination fees are eliminated, it would impact future student loans only, not existing debt.
Eliminate junk fees with student banking products
The college-related fees Biden is targeting include “high and unusual fees” associated with student financial products. Colleges and universities often offer bank accounts and credit cards as part of affiliations with financial institutions. These fees include insufficient funds fees, maintenance fees and closure fees.
Biden wants to block financial companies that partner with colleges to disburse Title IV funds (such as student loans) from charging fees to students. The administration says these junk fees are out of step since banks have largely phased them out.
The measure to end junk fees for college banking and student credit cards is currently in the formal process known as negotiated rulemaking. Though it doesn’t require approval by Congress, don’t expect a change anytime soon.
Empower students to authorize tuition charges for textbooks
Many colleges and universities have long included textbooks as part of students’ tuition bills. That means that the charge is automatically included and students have to pay for course materials regardless of the actual costs available on the market. Students might be able to find textbooks cheaper somewhere else, but colleges still bundle those anticipated costs as part of tuition.
Biden is proposing that students be required to authorize a charge on their tuition bill for textbooks and other required materials for their courses. The administration says these changes would provide students with the opportunity to do a cost comparison to find the cheapest options or eliminate the cost altogether by accessing free open-source textbooks.
“The college has a lot of power and sway and these are ways that, you know, essentially consumers — your students — are forced to pay for things that they should be able to look at cheaper costs,” says Tanden.
These changes are also in the negotiated rulemaking process and don’t require congressional approval.
Require colleges to return unused ‘flex dollars’ and meal plans
Students are often required to purchase meal plans with their college or university, which are used for dining hall meals or as “flex dollars” to pay for food elsewhere on campus. But at the end of each semester, schools can rescind any remaining funds. That means students must spend the money before the semester ends or forfeit what they’ve already paid for — often with student loans.
“Students are often taking on debt in their college years to pay for the cost of living, as well as their tuition, and because of interest that could grow in cost,” says Tanden.
The Biden administration would halt colleges from taking leftover funds and instead require them to return the remaining dollars to students.
The administration announced it is now formally considering this regulation. It would need to move through the negotiated rulemaking process and wouldn’t need approval by Congress.
Photo by Drew Angerer/Getty Images News via Getty Images
President Joe Biden, in his ongoing crusade against hidden junk fees, has so far cracked down on event ticketing, airlines, financial companies and rental housing. The next target: junk fees at colleges and in student lending.
On Friday, the Biden administration announced several new actions to alleviate the burden of these superfluous fees. The most significant would be the elimination of origination fees for federal student loans — if it passes muster with Congress.
“We feel strongly that there are times where the American consumer is kind of played for a sucker,” says Neera Tanden, domestic policy advisor to Biden. “There’s a hidden fee or there’s some way in which a company or an entity is basically using its market power to make you pay a fee that you shouldn’t have to.”
Junk fees are the label given to the irksome and often surprise surcharges to what you’re already paying for. This includes things like credit card late fees, overdraft fees at banks, amenity and resort fees at hotels, service fees for event ticketing or food delivery, as well as seat selection fees on airlines. For over a year, the Biden administration has taken several actions to curb junk fees and surface hidden fees.
End student loan origination fees
On the student lending side, Biden would eliminate the student loan origination fee as part of his 2025 budget proposal.
Origination fees are the percentage of the loan amount that’s considered a processing fee. The fee ends up being tacked on to loan balances, which means borrowers would pay interest on the fee over the life of the loan. Origination fee rates range from 1% for undergraduate loans to 4% for graduate and parent PLUS loans.
Tanden, who spoke with NerdWallet in an exclusive interview, calls origination fees a “relic of the past” when private lenders originated student loans backed by the government, which hasn’t been the case since 2010 when the federal government began exclusively lending directly rather than guaranteeing loans made by private financial institutions. She adds that there’s no current rationale for it in federal student lending.
Borrowers collectively spend more than $1 billion annually on origination fees, according to a release by the administration. However, Biden can’t get rid of origination fees unless Congress approves it as part of the nation’s 2025 budget.
Tanden says she hopes the proposal will be treated as a nonpartisan issue. “We know that Republicans have welcomed ways to cut back on taxes for people,” she says. “This is really just a tax on student borrowing.”
If origination fees are eliminated, it would impact future student loans only, not existing debt.
Eliminate junk fees with student banking products
The college-related fees Biden is targeting include “high and unusual fees” associated with student financial products. Colleges and universities often offer bank accounts and credit cards as part of affiliations with financial institutions. These fees include insufficient funds fees, maintenance fees and closure fees.
Biden wants to block financial companies that partner with colleges to disburse Title IV funds (such as student loans) from charging fees to students. The administration says these junk fees are out of step since banks have largely phased them out.
The measure to end junk fees for college banking and student credit cards is currently in the formal process known as negotiated rulemaking. Though it doesn’t require approval by Congress, don’t expect a change anytime soon.
Empower students to authorize tuition charges for textbooks
Many colleges and universities have long included textbooks as part of students’ tuition bills. That means that the charge is automatically included and students have to pay for course materials regardless of the actual costs available on the market. Students might be able to find textbooks cheaper somewhere else, but colleges still bundle those anticipated costs as part of tuition.
Biden is proposing that students be required to authorize a charge on their tuition bill for textbooks and other required materials for their courses. The administration says these changes would provide students with the opportunity to do a cost comparison to find the cheapest options or eliminate the cost altogether by accessing free open-source textbooks.
“The college has a lot of power and sway and these are ways that, you know, essentially consumers — your students — are forced to pay for things that they should be able to look at cheaper costs,” says Tanden.
These changes are also in the negotiated rulemaking process and don’t require congressional approval.
Require colleges to return unused ‘flex dollars’ and meal plans
Students are often required to purchase meal plans with their college or university, which are used for dining hall meals or as “flex dollars” to pay for food elsewhere on campus. But at the end of each semester, schools can rescind any remaining funds. That means students must spend the money before the semester ends or forfeit what they’ve already paid for — often with student loans.
“Students are often taking on debt in their college years to pay for the cost of living, as well as their tuition, and because of interest that could grow in cost,” says Tanden.
The Biden administration would halt colleges from taking leftover funds and instead require them to return the remaining dollars to students.
The administration announced it is now formally considering this regulation. It would need to move through the negotiated rulemaking process and wouldn’t need approval by Congress.
Photo by Drew Angerer/Getty Images News via Getty Images
No matter what age you are, it’s never too soon to start thinking about — and actively saving for — your retirement. With reports coming out regularly about the severe retirement savings gap in the U.S., it seems as though the majority of Americans are vastly underprepared for this life event.
If your employer offers a 401(k) at your place of work, this is a great way to get started (or continue) saving for your golden years. Before you jump in, find out exactly what a 401(k) is and how it can help you prepare for retirement. If you already contribute to a 401(k) plan, make sure you know what to expect when it comes time to retire.
How does a 401(k) work?
A 401(k) plan helps you save while investing your contributions in various mutual funds. Employers offer this type of retirement plan, so you can’t sign up for one unless you go through your place of work.
As an incentive to save, you receive a tax break. Depending on the type of 401(k) you choose (or your company offers), you either receive that tax break when you make the contribution or when it comes time to withdrawal.
Employer 401(k) Matching
Many employers offer a match to any contribution you make. This usually happens in one of two ways: they’ll either match dollar for dollar up to a certain limit or up to a percentage of your salary.
The most common type of 401(k), the traditional 401(k), allows you to make any contribution tax-deductible each year. So if you contribute $6,000 a year, you get to knock that off your taxable income amount. If you’re on the edge of a tax bracket and make a sizeable 401(k) contribution, you might even be able to jump down into a different bracket with a lower tax rate.
401(k) Tax Rules
While your investments continue to grow each year, they remain temporarily protected from taxation. Unlike other types of investments, you don’t pay any annual tax on your 401(k) earnings until you start to make withdrawals. At that point, you’ll be subject to regular income tax when you take out money each month.
As you continue to make 401(k) contributions throughout your year, you can adjust your investments to become increasingly less volatile. The idea is that as you get closer to retirement age, you have less risk to ensure a solid nest egg when you need it.
The Benefits of a 401(k)
A 401(k) is a retirement savings plan sponsored by an employer. It allows employees to save and invest a portion of their paycheck before taxes are taken out. Contributions to a 401(k) are made with pretax dollars, which can lower your taxable income in the current year and potentially result in a lower tax bill.
Some other benefits of a 401(k) include:
Employer matching contributions: Many employers will match a portion of their employees’ 401(k) contributions, effectively giving you free money to save for retirement.
Tax-deferred growth: Any investment earnings on your 401(k) account grow tax-free until you withdraw the money in retirement.
Potential for tax credits: Depending on your income and participation in a 401(k) or other qualified retirement plan, you may be eligible for certain tax credits that can help reduce your tax liability.
Retirement income: A 401(k) can provide a source of income in retirement, which can help you maintain your standard of living when you are no longer working.
Convenience: Many 401(k) plans offer a range of investment options, and the contributions are automatically deducted from your paycheck, making it easy to save for the future.
The money you withdraw from a 401(k) in retirement is subject to income tax, and 401(k) plans have contribution limits. However, overall, a 401(k) can be a valuable tool for saving for the future and reducing your tax liability.
401(k) Contribution Limits
There are limits to your 401(k):
While it’s a great financial tool, you can only contribute up to $22,500 each year, amounting to $1,875 per month if you divide it out monthly. If you’re over the age of 50, you’re allowed to contribute up to $30,000 a year ($2,500 per month). These contribution limits are in place so that you can only benefit from so much tax savings each year.
Required Minimum Distributions
Another rule associated with a 401(k) is that you must start taking “required minimum distributions” at some point. That means once you hit a certain age, you must begin withdrawing funds from your 401(k) account — and paying taxes on them.
Currently, the requirement is that you start taking distributions the year after you turn 70 ½. Then you have to take out distributions by December 31 of each following year. Your minimum required amount is determined by the IRS based on your life expectancy. There’s nothing quite like a government tax agency predicting your lifespan, is there?
Still, this information helps you determine what kind of tax burden you can expect when you’ve finally retired. While your income may be lower, your deductions might be as well. After all, you probably don’t have kids left at home to claim as a deduction. And if you’ve paid off your mortgage, you won’t have that interest to deduct either.
It’s great not to have those expenses, but it can be helpful to talk to a tax professional to get a better idea of your taxes, especially in that first year of retirement or required minimum distributions. The more prepared you are, the more financial flexibility you can have!
401(K) Plan Types
There are two main types of 401(k) plans: traditional 401(k)s and Roth 401(k)s.
A traditional 401(k) allows you to contribute pretax dollars to your account. Your contributions and any investment earnings in the account are tax-deferred. This means you won’t have to pay taxes on them until you withdraw the money in retirement. When you withdraw the money in retirement, it is taxed as ordinary income.
A Roth 401(k) is similar to a traditional 401(k), but contributions are made with after-tax dollars. This means you won’t get an immediate tax break on your contributions, but qualified withdrawals from the account in retirement are tax-free.
Some 401(k) plans may offer both traditional and Roth options, allowing you the flexibility to choose the type of plan that best meets your needs.
There are also types of 401(k) plans that are designed for specific types of employers, such as safe harbor 401(k)s and SIMPLE 401(k)s. These plans may have different contribution limits and rules for employer matching contributions. So, it’s important to understand the details of the plan you are enrolled in.
What’s the difference between a traditional 401(k) and a Roth 401(k)?
While a traditional 401(k) offers upfront tax savings in return for taxes paid later during retirement, a Roth 401(k) flips the situation around. Instead, your contributions are made with your taxable income. In return, you don’t have to pay any taxes when you start withdrawing from your account during retirement.
While you miss out on tax savings upfront, you’re only paying on the original contribution amount. If you had to pay taxes when you withdraw, you’re also paying taxes on everything you’ve earned, which is hopefully a lot more money than you started with.
Roth 401(k) Requirements
There are requirements to qualify for the Roth 401(k) benefits:
First, your account must be open for at least five years. You also have to wait until you’re at least 59 ½ before you can start taking distributions, unless you’ve had a disability.
A Roth IRA is particularly useful if you’ve accumulated a lot in retirement savings and other investments. While many people have less income when they retire, that’s not always the case. You may have a comprehensive portfolio of investments, in which case you could be better served by not paying taxes on at least part of your withdrawals.
If you’re nearing retirement and expect to drop in your tax bracket soon, there may be no sense in using a Roth 401(k) now. A Roth 401(k) can be a great choice if you have a lower income now because you’re earlier in your career or have tons of tax deductions because of kids and a mortgage.
Like all retirement plans, there are better products for different points in your life. By constantly reassessing how you contribute to your retirement savings, you can maximize your tax benefits now and in the future.
See also: IRA vs. 401(k): Where Should You Invest Your Money?
Employer Contribution Match
An employer contribution match is a feature of some 401(k) plans in which the employer agrees to contribute a certain amount of money to an employee’s 401(k) account based on employee contributions.
For example, an employer might offer a 50% employer match on the first 6% of an employee’s salary that the employee contributes to their 401(k) account. In this case, if the employee contributes 6% of their salary to their 401(k), the employer would contribute an additional 3% (50% of the employee’s contribution).
Employer contributions are a way for employers to encourage their employees to save for retirement and to provide an additional source of retirement income for their employees. Employers may also use contribution matching as a way to attract and retain top talent.
Employer contribution matches may have certain rules and requirements, such as vesting periods, that determine when an employee becomes fully entitled to employer contributions. Make sure you understand the details of any employer contribution match offered by your employer to make the most of this benefit.
What happens if you leave your job?
Don’t worry. You don’t lose your 401(k) savings if you leave your current employer. You typically have a few different options available to you. First, you can leave it in the company plan if they allow it. You won’t be able to continue making contributions or any changes to your allocations. But you can access it when you’re ready to retire.
401(k) Rollover
Or you can do a rollover:
A rollover allows you to switch the funds to another retirement plan without paying any tax penalties. You can either do an IRA rollover or use a plan from your new employer. You do need to make sure your new employer’s plan allows for rollovers.
Then you can continue your contributions as normal, following the rules of the new account, whatever it may be. An IRA is always a viable option because you’re in control of how you invest. And while the annual contribution limit is $6,500 (or $7,500 if you’re 50 or older), it doesn’t count when you’re rolling over funds.
Your final option for handling your 401(k) when you leave your job is to cash it out. If you do this, you’ll be subject to all the relevant penalties. These include a 10% early withdrawal penalty and income taxes for both federal and state. The exception to the early withdrawal penalty is if you are at least 55 years old when you leave your employer.
How much should you contribute to your 401(k)?
How much you decide to contribute to your 401(k) should depend on numerous factors. At the very least, you should contribute the maximum amount allowed to receive a matching contribution from your employer. That essentially equals free money, which you should never pass up.
Next, think about your financial picture as a whole. What kind of debt do you have? If you have any high-interest credit card or loan balances, you may want to focus your efforts on paying those down before contributing more to your retirement plan. Lower interest debts, like a fixed student loan, may not be as pressing to repay.
Furthermore, consider these recommended saving strategies:
Emergency Fund
You’ll probably want a three to six-month emergency fund in case you lose your job or get a sudden illness or injury. Having a large chunk of money stashed away in an easy-to-access savings account can provide you with financial security here and now.
Roth IRA
Once you’ve got your overall savings plan in order, it’s time to start figuring out where else to invest for retirement. Before you max out your traditional 401(k), think about picking up a Roth IRA. This helps you diversify your retirement plans for tax purposes.
Like a Roth 401(k), a Roth IRA lets you pay taxes on your contributions now, so you don’t have to pay anything when you make withdrawals during retirement. It can certainly help you spread out your tax burdens over the course of your life.
Still have money left over to invest?
If you do, revisit your 401(k). Remember, you can contribute up to $22,500 so you can certainly divert more of your income towards that maximum.
How else should you prepare for retirement?
Preparing for retirement takes a constant reassessment of your current needs versus your future goals. As easy as it is to say, “You need to contribute this-many-thousands of dollars a year to survive retirement,” the reality is that it’s much harder to actually do that.
But saving for retirement is still a challenge worth conquering. Even if you’re in your 40s and haven’t started saving a dime, you can start today. Once you’ve got your current savings fund in place that you can use for emergencies, implement some of these easy tips to get ready for retirement.
For now, worry less about picking the perfect type of account and focus on the habit of retirement saving.
Here are some ideas to get you started:
How to Save Extra Money:
Downsize your living expenses, one step at a time.
Place your tax refund into a retirement account.
Stream television instead of paying for cable.
Cut back on eating out.
Stay healthy to reduce future healthcare costs.
Pay down high interest debt like credit cards.
Sell your stuff and put the money towards retirement.
How to Strategically Manage Your Retirement Accounts:
Create a retirement savings goal as a percentage of your income.
Pay yourself first by setting up auto direct deposit to your retirement account on payday.
Take advantage of higher IRA contribution limits when you’re 50+.
Audit your accounts every year.
Consolidate multiple accounts (like IRAs) to reduce fees.
Put your end-of-year bonus into a retirement account.
Bottom Line
Investing in your retirement is really investing in yourself. Taking advantage of your employer’s 401(k) is an important part of the equation. In addition to making regular contributions, be sure to explore all of your options for financing your retirement. A healthy portfolio mix isn’t difficult to develop, and there are plenty of resources available to help you get started.
Amidst a backdrop of inflation, rising borrowing costs, and growing debt levels, employee financial wellness has been on the decline in recent years. According to PwC’s 2023 Employee Financial Wellness Survey, a full 60% of full-time employees are stressed about their finances. Indeed, employees are even more concerned about their finances today than during the height of the pandemic.
Given that money worries can take a toll on employee health and well-being, as well as productivity at work, it makes sense that a growing number of employers are enhancing support for financial wellness. Bank of America’s 2023 Workplace Benefits Report found that 97% of employers now feel responsible for employee financial wellness (up from 95% in 2021, and from 41% in 2013).
Regardless of how well-compensated your staff may be, this type of resource can help workers feel more financially confident and prepared for the future. Here’s a look at 10 reasons why adding this benefit is so important.
1. Decreases Distractions and Increases Productivity
According to PwC’s Survey (which included 3,638 full-time employed adults across a variety of industries), financially stressed employees tend to be more distracted and less engaged while at work. The study found that financial stress and money worries had a negative impact on the respondents’ sleep, mental health, self-esteem, physical health, and personal relationships. Nearly one-third of employees surveyed admitted that financial insecurity has negatively impacted their productivity at work.
When employees are able to easily get answers to their financial questions and access on-site support when dealing with money problems, there’s a good chance they’ll be less stressed about their finances and more able to focus on their jobs. That’s a win for both employees and employers.
2. Improves Employee Physical Health
Financial stressors have been found to correlate directly with not only mental health challenges but also with poor physical well-being. As the American Psychological Association points out in their Stress in America 2023 report, stress and anxiety put the body on high alert and ongoing stress can accumulate, causing inflammation, wearing on the immune system, and increasing the risk of a number of different ailments, including digestive issues, heart disease, weight gain, and stroke.
Providing your employees with the support they need now can go a long way toward staving off physical health challenges down the line.
3. Builds Loyalty
By offering financial wellness programs, employers demonstrate a commitment to their employees’ well-being, which can help foster employee loyalty and increase retention rates.
The PwC study found that just 54% of financially stressed employees felt there was a promising future for them at their employer, and they were twice as likely to be looking for a new job than employees who were less stressed about their personal finances. What’s more, 73% of financially stressed employees said they would be attracted to another employer that cares more about their financial well-being compared to just 54% of non-financially stressed employees.
Recommended: 3 Ways to Support Your Employees During Times of Uncertainty
4. Can Help Reduce the Burden of Student Debt
Employees struggling to pay down student debt often have difficulty contributing to 401(k) plans and achieving other financial goals, such as buying a house or car. By offering student loan repayment benefits and education, employers can reduce this burden and help employees plan for the future.
The good news is that these programs recently became more affordable. Under the Coronavirus Aid, Relief and Economic Security (CARES) Act, employers can now provide $5,250 tax-exempt annually for an employee’s student loan repayment through 2025. That means employees won’t pay income tax on contributions made by their employers toward educational assistance programs, yet the employer also gets a payroll tax exclusion on these funds.
A growing number of employers are offering some form of loan repayment support. In 2021, only 17% of companies offered any of these benefits. In October 2023, 34% of employers offered student loan benefits.
Recommended: How Student Loan Benefits Can Help Retain Employees
5. Employees Want It
According to the PwC study, the vast majority of employees want help with their finances. Not only that, the stigma around getting help with finances appears to be lifting. In 2023, employees overall were less likely to be embarrassed to ask for guidance or advice about their finances than they’ve been in the past: Just 33% said they find it embarrassing, compared to 42% in PwC’s 2019 survey.
In Bank of America’s Workplace Benefits Report (which surveyed more than 1,300 employees and nearly 800 employers), 76% of employees said they felt that employers are responsible for their financial wellness.
6. Can Help Parents Save for Future College Expenses
In a June 2023 survey of 1,000 parents of teenagers by Discover Student Loans, 70% of subjects said they were worried about financing their kids’ college expenses. In addition, 68% of parents were concerned about the amount of debt their kids will be saddled with even after the parents offer up their own financial assistance.
Providing employees with much-needed information about 529 college savings plans and giving them a convenient way to contribute directly from their pay, can go a long way in helping to relieve the stress associated with one of their top financial concerns.
While in the past, the options for using unspent 529 funds were limited (and often meant facing tax and penalty consequences), the SECURE 2.0 Act allows savers to roll unused 529 funds — to a lifetime limit of $35,000 — into the beneficiary’s Roth IRA, without incurring the usual 10% penalty for nonqualified withdrawals or generating any taxable income. The new rule went into effect January 1, 2024 and might come as a relief to any employees who worry about having excess funds stuck in a 529 should their child end up not needing the money.
Recommended: The Importance of Offering 529 Plan Contributions in an Employee Benefits Package
7. Helps to Clarify Confusing Financial Topics
Many young professionals want to buy their first home, but they don’t know how to save for a down payment or secure a mortgage. New to the workforce, they also struggle to understand financial topics they weren’t taught in school, such as income tax deductions (especially as they get married and have children), the necessity of life insurance, and wealth management and investing.
At the same time, older employees might feel overwhelmed by the financial options available to them. With educational resources and access to experts through a financial wellness program, employees can find the information they need from vetted and trusted sources. In PwC’s survey, 68% of employees said they use their employer’s financial wellness services such as coaching, workshops or online tools.
8. Protects Employees
Sometimes healthcare benefits just aren’t enough. In the event of a health emergency, employees need to be prepared for insurance deductibles and other unexpected costs. Solid financial preparations can prevent them from dipping into savings or making hardship withdrawals from 401(k) plans. Those withdrawals can not only damage their prospects for long-term financial stability, but also create administrative headaches for HR.
Providing an automated emergency savings program is fast becoming a way for employers to help provide a foundation for financial well-being for workers. These plans allow employees to make paycheck contributions to a dedicated account (possibly with a company match), and can help make your workforce more financially resilient in the face of life’s “What Ifs.”
Recommended: How Much Should Your Employees Have in Emergency Savings?
9. Enhances Your Organization’s DEI Efforts
These days, many employers of all sizes have a diversity, equity and inclusion (DEI) strategy or program in place to increase inclusion in the workplace. Offering financial wellness benefits to employees is yet another way to foster a more equitable company culture.
The reason is that financial wellness benefits can help level the playing field by helping to empower minorities and underrepresented groups, who may have more financial stress and encounter more barriers to economic opportunities. Giving all employee populations access to programs that can help them buy their first homes, pay down student debt, save for emergencies, and invest for the future allows them to build wealth for generations to come.
Recommended: How to Support Your Low-Wage Workforce
10. Helps Employees Plan for Retirement
Employer-sponsored retirement plans can help to ease the financial stress that stems from retirement planning. In addition to offering a retirement plan, you might also provide education programs on planning for retirement, understanding different types of accounts available, and best places to get started based on age and goals.
In addition, you might consider instituting a 401(k) match for their student loan payments. Thanks to a provision in Secure Act 2.0 (that went into effect at the start of 2024), companies can match employees’ qualified student loan payments with contributions to their retirement accounts, including 401(k)s, 403(b)s, SIMPLE IRAs, and government 457(b) plans. With this benefit, employees won’t need to make the decision regarding whether to contribute to their 401(k)s or make student loan payments.
Recommended: How Does an HR Team Implement a Student Loan Matching or Direct Repayment Benefit?
The Takeaway
Financial stress is a major concern for today’s employees, and something a growing number of workers want their employers to help with. Providing support for financial wellness can help boost employee engagement and retention, stave off mental and physical health concerns, help your company recruit top talent, and even lead to a more inclusive and equitable workplace.
SoFi at Work can help. We provide the benefit platforms and education resources that can enhance financial wellness throughout your workforce.
Photo credit: iStock/Inside Creative House
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Solar batteries store solar energy for use at another time. Manufactured by companies including Panasonic, LG, Generac and Tesla, a solar battery typically costs $12,000 to $22,000. Solar batteries may be a good choice if you’re looking to use less grid electricity or go off-grid completely
.
Solar battery pros and cons
Lower energy bills.
Expensive to purchase and replace.
Environmental benefits — reduced need for fossil fuel generated power/lower carbon footprint.
Limited energy storage capacity.
Long life span options. Many can last up to 20 years or longer.
Safety concerns if improperly installed, ventilated or maintained. Some types can overheat and catch fire.
Possible federal and state tax incentives.
Regular maintenance required on some types.
Provides backup energy in the event of a blackout, regardless of weather.
Some types can be bulky and take up a lot of space.
Can avoid high peak-use-hours charges.
Requires proper disposal.
Increased energy efficiency.
Some types, such as nickel-cadmium, may contain materials that are harmful to the environment.
Less dependency on the grid.
Renters don’t qualify for federal tax incentives.
Can operate in tandem with a grid-tie system.
Some require special equipment for installation.
Quiet power, unlike generators.
Some may emit harmful gasses.
Can also be used for microgrids and portable power units.
Not all battery types are readily available for residential systems.
How do solar batteries work?
When you pair your solar energy system with a solar battery, the surplus energy your system generates goes straight to the battery, where it’s stored for later use (as opposed to that surplus automatically being returned to the grid)
State of South Carolina Energy Office. Battery Back-up. Accessed Mar 11, 2024.
.The energy stored in your battery bank can then be used later when you need it most, such as during a power blackout. Here’s how it works:
Solar panels use photons from the sun to knock electrons away from atoms and generate an electrical flow.
The excess electricity generated by the solar panels is stored as direct current (DC) energy in the solar battery.
An inverter converts the DC energy to alternating current (AC) energy for home use — either as needed, if you have a DC-coupled conversion system — or immediately for instant use if you have an AC-coupled conversion system. Excess power in this type of system can be converted back to DC to charge the battery.
A solar system with a solar battery may include these basic components:
Ground or roof-mounted solar panels.
Battery bank.
Inverter that converts DC energy into AC energy for home use.
Junction box to connect solar panel wiring to the home breaker panel.
Charge controller to prevent battery overheating.
Utility meter for the battery bank.
Disconnect switch to prevent islanding (continuing to generate electricity and push it onto the grid) during blackouts. This protects electrical workers trying to restore power.
If your solar system is connected to the grid, you’ll also have an interconnection agreement with your utility provider.
Types of solar batteries
Here are some of the main types of batteries commonly used in solar systems.
Lead acid batteries
These reliable staples are the oldest type of solar batteries, and they are often used for off-grid applications. They’re the most affordable solar battery option, but they have a low energy density, meaning they can’t hold a lot of energy for their weight. Compared to other options, they’re large and heavy.
Pros
Dependable, time-tested technology.
Easy to recycle.
Lower priced than other types of solar batteries.
Compatible with most systems.
Cons
Heavier and bulkier than other types of solar batteries.
To preserve battery life, it’s recommended that you don’t let the battery capacity drop below 50%. Other types of batteries can drop to 10% capacity — and sometimes lower — without damaging the system.
Generally need maintenance such as adding water (unless sealed).
May emit gasses.
Shorter life span than other types of solar batteries.
Take longer to recharge than other types of solar batteries.
Contain harmful chemicals and they require proper disposal.
Lithium-ion batteries
Well-suited to residential solar systems, lithium-ion batteries offer a small, light and long-lasting solar battery option with a high energy density. This newer technology lets you access more of the battery’s stored energy before needing to recharge it, which is why this type of battery is common in laptops and mobile phones. If they’re not installed properly, however, lithium-ion batteries can catch fire. They’re also pricier than some other types of batteries.
Pros
Smaller and lighter than other battery types; work well in tight spaces.
Newer technology with improved battery capacity and efficiency.
Long life span.
Little or no maintenance required.
Fewer batteries needed for power.
Lithium-ion batteries have a high depth of discharge, meaning if the battery capacity drops to 10%, it won’t strain the system or cause the system to degrade.
Cons
High price.
Can catch fire if improperly installed.
Special equipment required for installation.
Nickel-cadmium batteries
Designed mostly for commercial solar systems, nickel-cadmium batteries are rare in smaller residential applications. Because some manufacturers are testing ni-cads for home systems, we may see more of them in the future. Nickel-cadmium batteries use older technology, are low maintenance and long-lasting, have a high discharge capacity and can work efficiently even in extreme temperatures. However, they’re also heavy and bulky, lose charge when they’re not used, are costly and contain toxins that are harmful to the planet when not properly disposed of. Some countries have banned their use.
Pros
Long life span of up to 20 years or more.
Nickel-cadmium batteries have a high depth of discharge, meaning if the battery capacity drops to 20%, it won’t strain the system or cause the system to degrade.
Perform well under extreme weather conditions.
Time-tested technology.
Low maintenance.
Cons
Power retention is lower than other battery types.
Not environmentally friendly.
Not typically available for residential solar systems.
Heavy and bulky.
Flow batteries
Engineered for large-scale use with very limited availability to homeowners, this new technology uses water-based electrolytes that flow between two internal tanks. Charging and discharging takes place through chemical reactions within the battery, and increasing the number of tanks can increase total energy storage capacity. Flow batteries are very efficient and have a 100% discharge capacity. They’re also long-lasting and use nontoxic, nonflammable materials. Unfortunately, they’re also heavy, large and expensive. They require a lot of maintenance and have a low power density.
Pros
Customizable.
Long life span of 20 years or more.
Nonflammable and nontoxic materials.
High efficiency with 100% discharge capacity.
Cons
Heavy/bulky.
Considered too expensive for residential use.
Low power density.
High maintenance.
Final considerations and how to choose a solar battery
Here are a few important factors to consider and compare:
Budget. Weigh affordability and durability, and be aware that less expensive lead-acid batteries won’t last as long as lithium-ion batteries, which are more expensive upfront.
Space. Choose batteries that fit in your available space.
Warranty: Look for a solid warranty from a reputable manufacturer.
Battery capacity. For maximum efficiency, be sure this is appropriate for your solar system’s energy production. There are two measurements to consider: Storage capacity is how much energy the battery can hold; usable capacity is the energy the battery can provide minus the energy needed to operate the battery.
Battery life span. Longer life spans save on battery replacement costs over time and lessen the impact on the environment.
Round-trip efficiency. This is the measure of how well your battery stores and retrieves energy and how efficient its operation is after it’s charged. The industry standard for this is about 80%
.
Depth of discharge: This is how much power a battery uses before you need to recharge it.
Maintenance. Lower-priced battery options such as lead-acid typically require more maintenance, and you’ll need to decide how much maintenance you’re willing and able to perform.
Your system’s voltage requirements. Make sure your battery is compatible with the voltage requirements of your solar panels.
Frequently asked questions
Are there any tax incentives to offset the cost of a solar battery?
Yes. Depending on when you purchased and installed your solar battery, you may be eligible for a federal tax incentive of between 22% and 30% of the battery’s cost. To qualify, the battery must have a storage capacity of at least 3 kilowatt hours. New construction and existing homes both qualify, as do both primary and secondary residences. The home can be a house, co-op, condo, houseboat, mobile home or manufactured home. Rentals do not qualify for this tax incentive. State incentives may be available in your areas as well. Check this database to see if you qualify for one.
Can I have solar panels without buying a solar battery?
Yes. Without a battery, any excess energy you produce will just go back to the grid rather than be stored in a battery for your future use. This is called a grid-tie system.
What type of solar battery is the most popular for residential use?
Even though they’re pricey, lithium-ion batteries are the most popular type of solar battery for residential use because they’re long-lasting and often don’t need maintenance.
Benchmarking a 401(k) retirement plan refers to how a company assesses their plan’s design, fees, and services to ensure they meet industry and ERISA (Employee Retirement Income Security Act) standards.
Benchmarking 401(k) plans is important for a few reasons. First, the company offering the plan needs to be confident that they are acting in the best interests of employees who participate in the 401(k) plan. And because acting in the best interests of plan participants is part of an employer’s fiduciary duty, benchmarking can help reduce an employer’s liability if fiduciary standards aren’t met.
If a company’s plan isn’t meeting industry benchmarks, it may be wise for an employer to change plan providers. Learn more about how benchmarking works and why it’s important.
How 401(k) Benchmarking Works
While a 401(k) is a convenient and popular way for participants to invest for retirement, the company offering the plan has many responsibilities to make sure that its plan is competitive. That is where 401(k) benchmarking comes into play.
An annual checkup is typically performed whereby a company assesses its plan’s design, evaluates fees, and reviews all the services offered by the plan provider. The 401(k) plan benchmarking process helps ensure that the retirement plan reduces the risk of violating ERISA rules. For the firm, a yearly review can help reduce an employer’s liability and it can save the firm money.
ERISA, the Employee Retirement Income Security Act, requires that the plan sponsor verifies that the 401(k) plan has reasonable fees. ERISA is a federal law that mandates minimum standards that retirement plans must meet. It helps protect plan participants and beneficiaries. 💡 Quick Tip: The advantage of opening a Roth IRA and a tax-deferred account like a 401(k) or traditional IRA is that by the time you retire, you’ll have tax-free income from your Roth, and taxable income from the tax-deferred account. This can help with tax planning.
The Importance of 401(k) Plan Benchmarking
It is important that an employer keep its 401(k) plan up to today’s standards. Making sure the plan is optimal compared to industry averages is a key piece of retirement benchmarking. It’s also imperative that your employees have a quality plan to help them save and invest for retirement. Most retirement plan sponsors conduct some form of benchmarking planning, and making that a regular event — such as annually — is important so that the employer continuously complies with ERISA guidelines.
Employers have a fiduciary responsibility to ensure that fees are reasonable for services provided. ERISA also states that the primary responsibility of the plan fiduciaries is to act in the best interest of their plan participants. 401(k) benchmarking facilitates the due diligence process and reduces a firm’s liability.
How to Benchmark Your 401(k) Plan: 3 Steps
So, as an employer, how exactly do you go about benchmarking 401(k) plans? There are three key steps that plan sponsors should take so that their liability is reduced, and the employees get the best service for their money. Moreover, 401(k) benchmarking can help improve your service provider to make your plan better.
1. Assess Your 401(k) Plan Design
It’s hard to know if your retirement plan’s design is optimal. Two gauges used to figure its quality are plan asset growth and the average account balance. If workers are continuously contributing and investments are performing adequately compared to market indexes, then those are signs that the plan is well designed.
Benchmarking can also help assess if a Roth 401(k) feature should be added. Another plan feature might be to adjust the company matching contribution or vesting schedule. Optimizing these pieces of the plan can help retain workers while meeting ERISA requirements.
2. Evaluate Your 401(k) Plan Fees
A 401(k) plan has investment, administrative, and transaction fees. Benchmarking 401k plan fees helps ensure total costs are reasonable. It can be useful to take an “all-in” approach when assessing plan fees. That method can better compare service providers since different providers might have different terms for various fees. But simply selecting the cheapest plan does not account for the quality and depth of services a plan renders. Additional benchmarking is needed to gauge a retirement plan’s quality. Here are the three primary types of 401(k) plan fees to assess:
• Administrative: Fees related to customer service, recordkeeping, and any legal services.
• Investment: Amounts charged to plan participants and expenses related to investment funds.
• Transaction: Fees involved with money movements such as loans, withdrawals, and advisory costs.
3. Evaluate Your 401(k) Provider’s Services
There are many variables to analyze when it comes to 401(k) benchmarking of services. A lot can depend on what your employees prefer. Reviewing the sponsor’s service model, technology, and execution of duties is important.
Also, think about it from the point of view of the plan participants: Is there good customer service available? What about the quality of investment guidance? Evaluating services is a key piece of 401(k) plan benchmarking. A solid service offering helps employees make the most out of investing in a 401(k) account. 💡 Quick Tip: Investment fees are assessed in different ways, including trading costs, account management fees, and possibly broker commissions. When you set up an investment account, be sure to get the exact breakdown of your “all-in costs” so you know what you’re paying.
Investing for Retirement With SoFi
Investing for retirement is more important than ever as individuals live longer and pension plans are becoming a relic of the past. With today’s technology, and clear rules outlined by ERISA, it can be easier for workers to take advantage of high-quality 401(k) plans to help them save and invest for the long term.
For the company offering the plan, establishing a retirement benchmarking process is crucial to keeping pace with the best 401(k) plans. Reviewing a plan’s design, costs, and services helps workers have confidence that their employer is working in their best interests. Benchmarking can also protect employers.
If your company already has a 401(k) plan that you contribute to as an employee, you might also consider other ways to invest for retirement. You can learn more about various options available, such as IRAs. There are different types of IRAs, including traditional and Roth IRAs. You may want to explore them to see which might be best to help you reach your retirement savings goals.
Ready to invest for your retirement? It’s easy to get started when you open a traditional or Roth IRA with SoFi. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).
Help grow your nest egg with a SoFi IRA.
FAQ
How often should a 401(k) be benchmarked?
It’s considered a best practice to benchmark a 401(k) annually to make sure the plan complies with ERISA guidelines. Making sure that the plan’s fees are reasonable and acting in the best interests of plan participants is part of an employer’s fiduciary duty. Benchmarking facilitates the due diligence process and reduces an employer’s liability if fiduciary standards aren’t met.
How do I benchmark my 401(k) fees?
To benchmark your 401(k) fees, take an “all-in” approach by calculating the service provider fees plus the investment expenses for the plan. This helps you compare your plan’s fees to fees charged by other service providers. In addition, assess the plan’s quality by looking at administrative fees (fees related to customer service and recordkeeping, for instance), investment fees (expenses related to investment funds and amounts charged to participants in the plan), and transaction fees (fees related to moving money, such as withdrawals or loans).
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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