
Just Adopted a New 401(k) Plan? Beware These Common Pitfalls
By June 30, 2022, businesses with 5 or more California employees must either enroll in CalSavers, a state-managed system of Roth IRA accounts, or establish their exemption from CalSavers by adopting 401(k) or other retirement plans of their own. Other states have implemented or are rolling out similar auto-IRA programs. Below are some potential pitfalls for new plan adopters that business owners should be aware of, and, where possible, take steps to avoid. Immediate top-heavy status. The “top-heavy” rules compare the combined plan account balances of certain owners and officers, called “key employees,”…
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