Some may find is surprising that an advisor would take the time to go through an enrollment with a new employee! But this is where their experience begins- to help them become more successful as a saver for retirement!
Once your employee is eligible, we will help them enroll online. We will describe the difference between Traditional pre-tax and Roth contributions, assess their risk and point them to appropriate investments. We use our investment expertise to extend valuable knowledge and guidance to your employees. We make sure that their beneficiaries are recorded, to leave no incomplete enrollments. We will help to transfer any past retirement accounts from past employers at the participant’s request.
We continue the experience by returning at least annually to review investment returns, explain changes to the investment models and give assistance to employees wishing to make changes to contribution levels, allocations or beneficiaries. We encourage participants to call us if they are having anxiety about the markets (like during the March 2020 downturn), to receive current investment guidance. We email educational articles quarterly, which get better attention because they know us as the 401(k) guys. When we stop in to meet new participants, current employees will ask questions too! We are there for them when needed.
When an employee terminates employment, we will contact them to determine what action they wish to take with their account. We will take into consideration a number of factors, including their overall goals, age, risk tolerance, and time horizon. They have several different options, including leaving their money in the plan, taking a lump sum, rolling funds to an individual IRA or to their new employer retirement plan (if applicable). This is very different than many recordkeepers- they would just as soon see participants leave their money in your plan.
We have gotten to know many employees over the years. It is rewarding to us to help employers reward long term employees through a successful retirement program! Please call us if you wish to have additional information, or if we can help you with your plan!
To get started, contact us today.
If considering rolling over money from an employer-sponsored plan, such as a 401(k) or 403(b), you may have the option of leaving the money in the current employer-sponsor plan or moving it into a new employer-sponsored plan. Benefits of leaving money in an employer-sponsored plan may include access to lower-cost institutional class shares; access to investment planning tools and other educational materials; the potential for penalty-free withdrawals starting at age 55; broader protection from creditors and legal judgments; and the ability to postpone required minimum distributions beyond age 72, under certain circumstances. If your employer-sponsor plan account holds significantly appreciated employer stock, you should carefully consider the negative tax implications of transferring the stock to an IRA against the risk of being overly concentrated in employer stock. You should also understand that Commonwealth and your financial advisor may earn commissions or advisory fees as a result of a rollover that may not otherwise be earned if you leave your plan assets in your old or a new employer-sponsored plan and that there may be account transfer, opening, and/or closing fees associated with a rollover. This list of considerations is not exhaustive. Your decision whether or not to roll over your assets from an employer-sponsored plan into an IRA should be discussed with your financial advisor and your tax professional.