Retirement Plan Professionals stay abreast of and advise you about new tax laws. Here’s one that went into effect on June 30, 2022.
According to the new law, all defined contribution plans (like 401k and profit-sharing plans), must now disclose an estimate of the monthly amount that your account balance would pay in the form of an annuity. What will your monthly income be when you retire? The good news: Most 401k plan record keepers have already incorporated this Lifetime Income Disclosure into their quarterly participant statements. If your retirement plan is professionally managed, this has probably been taken care of.
The bad news: All pooled accounts—those that are set-up on brokerage accounts like Merrill-Lynch, UBS, Morgan Stanley, JP Morgan to name a few—are usually not, and failure to disclose this information to your employees can result in hefty fines.
Brokerage firms may understand how to invest and grow money, but with the tax code constantly changing, it makes sense to work with experts who understand the specific forms, details, and deadlines that keep your plan up-to-date and penalty-free.
If you’ve been too busy growing your business to save for retirement, you’re not alone. Get in touch with a Professional Retirement Plan Consultant and start building your future today.