Alarm clock cartoon saying "don't wait"
Are Your Clients Thinking About Starting a 401(k)?
November 10, 2020 | posted in: Accountants | by Frye Retirement
Need To Act Now For a 1/1/21 Effective Date!
Now is the time to act if your clients are thinking about establishing a 401(k) plan to save on their taxes, and to offer a benefit their employees.
Most companies run on a calendar year basis, and typically, employee benefits start on the first of the year. Aligning the 401(K) start date with other benefits and the tax year will make recordkeeping easier for you and your client.
In order for the 401(k) plan to start on 1/1/21, there are participant notice deadlines of 12/1/20 that must be met, and plan documents must be executed before clients can start contributing to the plan. Therefore, time is of the essence; don’t delay in having your client contact us to initiate this process.
We are always here to help. If you have any questions or would like further guidance, please don’t hesitate to contact us.
