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Considering setting up a 401(k) plan for your business? Great choice! 

401(k) plans are one of the most popular retirement savings vehicles available today, and for good reason. They are a powerful addition to your benefits package that can significantly enhance your company's appeal in the competitive job market, making it easier to attract and retain top talent. Plus, it demonstrates a commitment to your employees' long-term well-being and financial security, which can boost morale and productivity.

In this blog, we’ll walk you through the basics of choosing and setting up a 401(k) plan for your company—one that aligns with your business objectives and supports your team's financial future.

A 401(k) plan is a tax-advantaged retirement plan sponsored by employers. Both employees and employers can make contributions. Employees can choose pre-tax contributions to reduce their taxable income now and pay taxes upon withdrawal, or, if available for their plan, Roth contributions, which are taxed upfront but withdrawn tax-free.

Employer contributions can come in various forms:

Generally, savers can withdraw funds from their 401(k) without penalty after reaching age 59½. Early withdrawals are subject to taxes and penalties, although there are exceptions for certain hardship situations.

Ready to get started? Here are 5 steps you can take to set up a 401(k) plan for your business:

Your first step when setting up a retirement plan is to choose a 

. Start by researching and comparing various providers, focusing on key aspects such as costs, range of services, investment options, and the level of administrative support they offer. Review client testimonials, ask for referrals from other business owners, and consult industry publications. Be sure to consider the provider's reputation and the quality of their customer service. These factors can significantly impact your plan's effectiveness and your experience managing it.

Once you have a shortlist of potential providers, request proposals so that you can compare the costs and fees. You can also schedule introductory calls with providers to clarify any questions and get a feel for their level of service and expertise. If you have a financial advisor, it’s also helpful to involve them in the decision-making process.

Once you’ve chosen a provider, your next step is to consider your goals for your retirement plan.

 Are you looking for flexibility? Or is ease of administration your top priority?

Your goals can help guide you when choosing plan features. For example, you can add a 

 component to your plan, which allows you to make discretionary contributions to your employees' retirement accounts and provides more flexibility. A 

 401(k) plan, on the other hand, is designed to automatically satisfy non-discrimination tests and can help simplify plan administration.

To help you navigate these options and more, Vestwell offers our clients a streamlined 

. This tool allows us to get to the core of your unique needs and objectives. Using straightforward language and avoiding industry jargon, the questionnaire asks about your business and your goals.

We analyze your responses to propose an optimal plan design that closely aligns with your company’s specific needs and objectives. If you choose Vestwell as your provider, your Plan Design Consultant will walk you through your options and help you decide on eligibility, contributions, vesting, and more.

A 401(k) plan document is a formal written legal document that outlines the specific terms and rules of a 401(k) retirement plan. It serves as the foundation for how the plan is operated and administered.

Vestwell creates plan documents for all of our clients.

The plan document includes detailed information on a variety of aspects, such as:

Specifies who is eligible to participate in the 401(k) plan, including age and service criteria.

 Details the contribution limits for both employees and employers, along with the rules for making these contributions.

 Explains the schedule by which employees gain ownership of employer contributions to their 401(k) accounts.

Outlines when and how savers can withdraw money from the plan, including provisions for loans and hardship withdrawals.

Defines the roles and responsibilities of the plan's fiduciaries, who are responsible for managing the plan and its assets.

The plan document is an important part of making a 401(k) plan run smoothly.

The next step involves setting up payroll. You will need to collect and share your payroll information with your 401(k) service provider. If your provider offers 

 capabilities, then contributions, elections, and other payroll-related transactions will be automated.

Vestwell simplifies the payroll setup process with our online task tracker. This tool allows you to add details about your payroll system, set up pay schedules, and designate a payroll administrator. This centralized approach ensures that your payroll information is inputted accurately and easy to manage.

Step 5: Provide Plan Information to Eligible Employees

Once your 401(k) plan is ready to go, the next step is to communicate the plan details to your eligible employees. 

This involves distributing a document called the Summary Plan Description (SPD). 

The SPD outlines the rights, benefits, and responsibilities of the participating employees within the plan. It includes detailed information on the plan's features, such as contribution limits, vesting schedules, withdrawal and loan provisions, and other key aspects of the plan.

Vestwell streamlines the communication process by sending out registration emails directly to all eligible employees. These emails provide employees with direct access to register for the 401(k) plan and start managing their contributions. If any emails are undeliverable, we’ll let you know so that you can update the email address or provide paper copies of the plan details.

Congratulations—your 401(k) plan is live! 

This milestone marks the beginning of a new phase in your company’s journey toward ensuring a secure financial future for your employees. With the plan active, your eligible employees can start contributing and growing their retirement savings.

As you transition into this new phase, Vestwell’s onboarding team will introduce you to the employer services team, your primary point of contact moving forward. They are equipped to assist you with any questions or needs that arise as you manage your plan. Their expertise in plan administration and ongoing support will help you navigate the day-to-day operations of your 401(k) plan seamlessly.

Ready to set up a 401(k) plan for your business?

A retirement plan is a powerful addition to your benefits package. By offering a 401(k) plan, you're not just providing a retirement savings vehicle; you're investing in your team's long-term wellbeing. It's a decision that can significantly improve your employees' retirement outcomes and strengthen your company's culture and loyalty.

At Vestwell, our commitment to our clients goes beyond the initial onboarding period. We offer ongoing resources and support to help make sure your plan remains effective and compliant. Reach out to us today to learn more about how Vestwell can help you set up and manage a 401(k) plan that’s right for your business. 

How to Set Up a 401(k) Plan: A Step-by-Step Walkthrough for Employers

A great retirement plan service provider can transform your practice. They can help you strengthen client relationships and focus on growing your business. With the right partner, you can make retirement planning a seamless and rewarding experience for everyone involved.

However, some providers just don’t live up to expectations. If you and your clients are dealing with tedious administrative work, impersonal customer service, or limited investment options, it may be time to consider switching providers.

In this article, we’ll guide you through the key factors to weigh when choosing to partner with a new 401(k) plan provider. 

We’ll also discuss certain capabilities that can streamline the 401(k) plan conversion process for your clients.

Key Factors to Consider When Switching Providers

1. Does the Provider Handle the Day-to-Day Work?

If the 401(k) plan provider you're considering doesn't handle day-to-day operations, your clients could find themselves buried under a mountain of administrative tasks. And these tasks are not trivial—they're essential for ensuring the plan runs smoothly and complies with regulations.

 can manage the day-to-day administrative work of a 401(k) plan. 

If you’re looking for a bundled solution, by choosing a provider that offers 3(16) fiduciary services, you can not only lighten the administrative load for your client but also help minimize the risk of compliance missteps and help the plan run more efficiently.

2. Can Your Clients Get the Customer Support They Need?

You and your clients shouldn't constantly be receiving emails from a round-robin service team.

A top-tier provider will take care of your client’s needs so that you can remain focused on your core business. 

 means that you don't have to be the go-between for your clients and the provider. Instead, you can trust that your clients receive immediate and expert assistance when needed.

In addition to service for your clients, look for a provider that provides dedicated support for advisors, too. Advisors that partner with Vestwell each have a 1:1 touchpoint on our Client Success team to help ensure they’re getting the direct support they need to better serve their clients.

3. Are There Flexible Investment Options?

When considering a switch, make sure you review the investment options available. 

Keep in mind that if a recordkeeper has proprietary funds that could pose a conflict of interest.

 Whether you're interested in an off-the-shelf offering or want to hand-pick investments or asset allocation models for your client, make sure the provider you choose to partner with gives you the flexibility to build the right fund line-up for you and your clients.

 offers advisors the ability to manage plans cumulatively. We set up investment programs in which changes to any of the investment options cascade across all plans. This approach streamlines your workflow and allows you to optimize investment strategies easily.

4. Are the Right Payroll Integrations Available for Your Clients?

For many advisors and their clients, the ease of managing a retirement plan is paramount. Finding a provider that supports 

can simplify plan administration. Contributions can be automated by directly linking the payroll system to the retirement plan.

Payroll integrations don’t just mean less manual work; they can also mean fewer errors.

 The contributions adjust automatically when payroll changes—whether it's due to salary adjustments, bonuses, or new hires. This minimizes the risk of discrepancies and over or under-contributions. This approach leads to a more streamlined, efficient, and error-free retirement plan management experience for both you and your clients.

5. Is the Pricing Straightforward and Transparent?

Your clients deserve to know exactly what they're paying for and why. 

If there are hidden fees or the provider is charging premiums without delivering equally high-quality services, it may be time to consider a switch.

When evaluating potential providers, take a close look at their pricing model. Is it easy to understand? Are there any hidden fees or costs that might surprise your clients down the road? Remember, clear, upfront, and transparent pricing can save you and your clients potential headaches in the future.

Explore 401(k) conversions with Vestwell.

How Vestwell Streamlines 401(k) Conversions

At Vestwell, we’re on a mission to be your firm’s go-to solution for plans of any size. To achieve this, our easy-to-use platform supports conversions in several key ways:

We recognize the importance of a smooth transition. That's why we've improved our onboarding process, dramatically reducing the time it takes to transfer a plan. Plus, our 

 is faster and more efficient than many traditional options out there.

The service provider you partner with should offer a plan design that grows with your client’s business. With Vestwell, you can choose between our 

 (where we’ve seen 400% year-over-year growth) or our full-service offering with 3(16) administration at no extra charge. This flexibility ensures that you get a solution that suits your clients, no matter the complexity or size of the plan.

Our dedication to exceptional customer service is reflected in our net promoter scores of close to 100. We have a responsive employee contact team to take calls during business hours, a new employer consultation team for plan design changes, and a client success team to be your 1:1 touch-point.

Switching your 401(k) plan provider can yield significant benefits. These include more efficient plan administration, improved customer support, and more flexibility for you and your clients. A successful conversion can be a strategic move that sets your clients and your practice up for success.

Ready to explore a 401(k) plan conversion? 

By offering faster onboarding, increased flexibility, and top-tier customer service, our digital retirement plan platform makes it simple to make the switch. Vestwell combines technology with best-in-class retirement plans and user-first design, making it easy for your clients to offer and administer a company-sponsored 401(k) that meets their needs. We aim to be the most modern, advisor-friendly recordkeeper in the market. 

401(k) Conversions: What Advisors Need to Look for When Switching Service Providers  

Workplace retirement plans are among the most common investment vehicles Americans use to save for retirement. As of December 31, 2022, just over 

 was held in employer-sponsored retirement plans, including traditional pension, profit sharing, and 401(k) plans.

It’s critical to understand your 401(k) plan as you map out your savings journey into retirement. 

In this article, we’ll explore the differences between pre-tax and Roth 401(k) contributions, helping you better understand your retirement plan contribution options.

The Basics: Contributing to Your 401(k) Plan

 is an employer-sponsored retirement plan that allows employees to save for retirement in a tax-favored way

. When you sign up for a 401(k) plan, you agree to have a percentage of your salary allocated to the plan’s investment accounts.

, up from $22,500 in 2023. Individuals aged 50 or over at the end of the calendar year can make annual catch-up contributions—up to 

. Depending on your 401(k) plan, your employer may match a certain percentage of your contributions.

When choosing how to contribute to your 401(k) plan, you can typically choose between:

, which contributes a portion of your compensation to your retirement plan account 

 applying state, federal, or local taxes and withholdings, or

 applying state, federal, and local taxes.

Not all 401(k) plans offer a Roth feature; you’ll need to check your employer’s plan to see if they are permitted. However, with 

90% of 401(k) plans now offering Roth options

, employees need to understand the difference—and the impact—of each.

The Difference: Pre-Tax vs. Roth 401(k) Contributions

Pre-tax 401(k) contributions are contributions made before taxes are deducted from your paycheck—so you receive the tax advantage for the year you contribute.

Here’s an example that illustrates this:

Pat’s monthly taxable income is $5,000. Assume that Pat’s tax rate is 22%. Also, assume that Pat would like to contribute 10% of her pre-tax income to her pre-tax 401(k) account.

$5,000 x .10 = $500 (pre-tax 401(k) contribution)

$5,000 - $500 = $4,500 (remaining income pre-tax)

Not only is Pat able to contribute $500 pre-tax to her 401(k) account,

Roth contributions are contributions made from your income 

 federal, state, and local taxes have already been withheld

. Because of this, you don’t receive tax advantages for the year you contribute, like you do a pre-tax contribution.

Let’s look at an example using the same facts as we did above with the Roth contribution:

Pat’s monthly taxable income is $5,000. Assume that Pat’s tax rate is 22%. Also, assume that Pat would like to contribute 10% of her after-tax income to her Roth 401(k) account.

$5,000 x .10 = $500 (Roth 401(k) contribution)

$5,000 - $1,100 - $500 = $3,400 (income after taxes and contribution)

Although these examples are basic, you can still see the tax differences at the time of contribution. Notice that the tax owed on the Roth example is $1,100 while the tax owed in the pre-tax example is $990—a $110 difference.

The Roth tax benefit comes during retirement when you withdraw from your Roth 401(k) account. 

Because you already paid taxes on this money at the contribution stage, you can make withdrawals from your Roth 401(k) account tax-free, including any earnings you’ve received as your retirement accounts have grown

. In other words, your earnings grow tax-free, no matter how significant they may be.

Additionally, because you’ve already paid taxes on your Roth contributions, you can withdraw them at any time as long as you meet the following requirements:

The exception to this rule is if you become permanently disabled or pass away. In that case, you or your beneficiary can access your Roth 401(k) account without penalties or taxes.

However, you may have an “early” withdrawal if you take Roth contributions out before you turn 59½ or have held the Roth account for at least five years. In this case, 

 on some or all of the amount you withdraw in addition to regular federal and state income taxes.

When determining which is better for you, you can’t stop the analysis here, especially since the Roth’s tax favorability doesn’t kick in until you take a distribution of your retirement funds. Which contribution type to use (or a combination of both) is an individual decision based on your current financial situation and retirement goals. Working with a financial advisor can help you determine the ideal course of action for you and your family.

 limit. In other words, you can split your contributions across Roth contributions and pre-tax contributions. However, the total amount of your employee contributions cannot exceed these maximum amounts.

Each type of 401(k) contribution has its pros and cons. We recommend consulting with your financial advisor or tax expert when navigating the choice between pre-tax 401(k) or Roth contributions. However, staying in the know on your 401(k) plan will help you maximize your financial returns, minimize your taxes, and create a sound plan for your future. No matter which option you select, starting early and saving consistently for retirement should be your primary goal.

Want to learn more about your 401(k) plan features? 

Need to sign up for your Vestwell retirement account? You can 

What’s the Difference Between Pre-Tax and Roth 401(k) Contributions?

Vestwell’s digital recordkeeping platform has brought the 401(k) and 403(b) industry into the modern fintech era. Learn more on our blog.

When working with clients, Michael Paris, President of advisory firm 

, likes to employ what he calls the “mother test.”

The premise is simple. The advice that Michael gives his clients is what he would tell his own mother if she asked him the same question. He explained, “I want to give my mother the best possible advice. And as a fiduciary, my clients deserve the best possible advice as well. Our goal at Paris International is to be high-quality solutionists for the people we serve.”

Paris International’s commitment to “caring differently” earned them a spot on the National Association of Plan Advisors (NAPA)’s Top DC Advisor Teams list. To further enhance their service offering, the firm partnered with Vestwell, a modern savings platform building a suite of solutions across retirement, health, and education. Through this partnership, they have launched 11 retirement plans. 

By leveraging Vestwell’s modern technology and robust service offering, Paris International can focus on what truly matters: providing top-tier advice and solutions that meet the "mother test" standard of care.

The Challenge: Finding a Partner to Modernize Operations and Remove Friction

Prior to Vestwell, Paris International encountered difficulties with their clients’ retirement plans due to outdated systems and processes.

 Michael noted that many legacy providers made it difficult to integrate new technologies and streamline operations, resulting in inefficient plan administration.

Michael highlighted an example involving a client named Dmitry, a software programmer with a dynamic, high-tech team. Dmitry’s company offered a retirement plan, but their service provider required manual downloading and uploading of contribution data, a process that was error-prone and inefficient.

“Dmitry said to me, ‘Michael, there's got to be a better way. Is this what a 401(k) plan is?’” The interaction with Dmitry became an inflection point in Michael’s career. “I thought to myself, is friction a way of life?” he said. “Or is there a better way?”

Paris International needed to partner with a provider that could meet the operational needs of the businesses they serve and remove the friction that was making plan administration harder for the firm and their clients.

The Solution: A Tech Partner That Enables Efficient Plan Management at Scale

Paris International partnered with Vestwell to offer their clients a modern saving solution with the technology and service capabilities to keep plans running smoothly.

 The firm currently has 11 active plans with Vestwell, and the partnership ensures they no longer need to troubleshoot platform errors or walk clients through complex processes, giving them time back to build client relationships and grow their business.

Modern Technology for Streamlined Operations

President, Paris International

Michael explained that Vestwell’s user-friendly portals for advisors, employers, and savers make plan management more efficient for everyone involved.

 He said, “Everything I’m looking for, or that a sponsor or participant is looking for, is less than three clicks away from the second I log in.”

 streamline plan administration for clients like Dmitry. Michael says he appreciates Vestwell’s commitment to developing reliable technology and quality payroll integrations, setting a high standard within the industry.

“Vestwell offers a great service model and a dedicated point of contact when we need it,” 

Michael said. “And the help center that Vestwell has built has been absolutely incredible.”

By leveraging Vestwell’s robust service offering and comprehensive educational resources like detailed FAQs, instructional videos, and step-by-step guides, Paris International is able to quickly and easily address the diverse needs of their clients.

The Impact: Seamless Operations and a Rocketship Growth Experience

Our Vestwell partnership enhances our business because they offer a seamless experience,

When we have that, it frees up our team members to serve our clients. When we're not putting out fires, we can be more proactive. We can answer the questions that 

“When we don't have that friction, we can interface with plan participants and plan sponsors, give fiduciary reviews, and make sure investments are sound,” Michael explained. This, in turn, allows the firm to scale. “We have had a rocketship experience by way of the growth of Paris International,” he said. 

“We're very, very happy with the partnership and we’re looking to enhance it in the future.”

With Vestwell, Paris International is able to overcome the challenges of outdated legacy providers and

offer a clear path to better financial health for their clients.

Vestwell is a modern savings platform building a suite of solutions across retirement, health, and education. Contact us to learn how we can help you make a lasting impact on your clients’ financial futures—and get a competitive edge in the marketplace.

 to learn more about Paris International.



When working with clients, Michael Paris, President of advisory firm Paris International Corporation, likes to employ what he calls the “mother test.”

The premise is simple. The advice that Michael gives his clients is what he would tell his own mother if she asked him the same question. He explained, “I want to give my mother the best possible advice. And as a fiduciary, my clients deserve the best possible advice as well. Our goal at Paris International is to be high-quality solutionists for the people we serve.”

Paris International’s commitment to “caring differently” earned them a spot on the National Association of Plan Advisors (NAPA)’s Top DC Advisor Teams list. To further enhance their service offering, the firm partnered with Vestwell, a modern savings platform building a suite of solutions across retirement, health, and education. Through this partnership, they have launched 11 retirement plans. 

By leveraging Vestwell’s modern technology and robust service offering, Paris International can focus on what truly matters: providing top-tier advice and solutions that meet the "mother test" standard of care.



The Challenge: Finding a Partner to Modernize Operations and Remove Friction

Prior to Vestwell, Paris International encountered difficulties with their clients’ retirement plans due to outdated systems and processes. Michael noted that many legacy providers made it difficult to integrate new technologies and streamline operations, resulting in inefficient plan administration.

Michael highlighted an example involving a client named Dmitry, a software programmer with a dynamic, high-tech team. Dmitry’s company offered a retirement plan, but their service provider required manual downloading and uploading of contribution data, a process that was error-prone and inefficient.

“Dmitry said to me, ‘Michael, there's got to be a better way. Is this what a 401(k) plan is?’” The interaction with Dmitry became an inflection point in Michael’s career. “I thought to myself, is friction a way of life?” he said. “Or is there a better way?”

Paris International needed to partner with a provider that could meet the operational needs of the businesses they serve and remove the friction that was making plan administration harder for the firm and their clients.

The Solution: A Tech Partner That Enables Efficient Plan Management at Scale

Paris International partnered with Vestwell to offer their clients a modern saving solution with the technology and service capabilities to keep plans running smoothly. The firm currently has 11 active plans with Vestwell, and the partnership ensures they no longer need to troubleshoot platform errors or walk clients through complex processes, giving them time back to build client relationships and grow their business.

Modern Technology for Streamlined Operations

Michael explained that Vestwell’s user-friendly portals for advisors, employers, and savers make plan management more efficient for everyone involved. He said, “Everything I’m looking for, or that a sponsor or participant is looking for, is less than three clicks away from the second I log in.”

Additionally, Vestwell’s payroll integrations streamline plan administration for clients like Dmitry. Michael says he appreciates Vestwell’s commitment to developing reliable technology and quality payroll integrations, setting a high standard within the industry.

A Robust Service Offering

“Vestwell offers a great service model and a dedicated point of contact when we need it,” Michael said. “And the help center that Vestwell has built has been absolutely incredible.”

By leveraging Vestwell’s robust service offering and comprehensive educational resources like detailed FAQs, instructional videos, and step-by-step guides, Paris International is able to quickly and easily address the diverse needs of their clients.

The Impact: Seamless Operations and a Rocketship Growth Experience

“Our Vestwell partnership enhances our business because they offer a seamless experience,” Michael said. “When we have that, it frees up our team members to serve our clients. When we're not putting out fires, we can be more proactive. We can answer the questions that matter.

“When we don't have that friction, we can interface with plan participants and plan sponsors, give fiduciary reviews, and make sure investments are sound,” Michael explained. This, in turn, allows the firm to scale. “We have had a rocketship experience by way of the growth of Paris International,” he said. “We're very, very happy with the partnership and we’re looking to enhance it in the future.”

Conclusion

With Vestwell, Paris International is able to overcome the challenges of outdated legacy providers and offer a clear path to better financial health for their clients.

Vestwell is a modern savings platform building a suite of solutions across retirement, health, and education. Contact us to learn how we can help you make a lasting impact on your clients’ financial futures—and get a competitive edge in the marketplace.

Click here to book a demo with Vestwell.

Click here to learn more about Paris International.



Seamless Savings: Paris International’s Transformative Partnership With Vestwell

Saving for your future can help you be prepared for emergencies, make long-term investments, and ultimately achieve financial security. However, with 

 of Americans living paycheck to paycheck, building up a rainy day fund can be challenging.

We’ve compiled a few key resources to help you achieve your savings goals—regardless of your financial situation. 

From preparing for retirement and educational expenses to savings options for Americans with disabilities, we're here to assist you in your savings journey.

401(k) Basics: A Starter Guide to Understanding Your Retirement Plan

Retirement is a major milestone that requires significant savings, but it’s often overlooked. In fact, according to the Federal Reserve, 

 of working-age households do not have a retirement savings account.

Does your employer offer a 401(k) plan as a part of their company benefits package, but you’re not sure where to begin? Starting out can feel overwhelming—from deciding how much to contribute to your account to choosing the right investments. Check out our blog for a user-friendly guide to the basics of 401(k) plans. Learn how you can leverage your employee benefits to save for the living expenses and costs you may incur in your golden years.

When it comes to retirement, it’s never too early to start saving. It’s important to begin setting aside funds as soon as you can to set yourself up for future success.

The first step in saving for retirement is understanding the different ways you can contribute to your account. Our blog linked below gives an overview of the different types of 401(k) plan contributions for those just starting out on their retirement savings journey.

5 Steps to Becoming a Retirement Millionaire

Do you know what it takes to become a retirement millionaire? In this article, Richard Tatum, Vestwell’s President of Workplace Savings, shares five tips on saving for retirement that can help you reach your retirement goals. If you're just beginning your career or looking to optimize your retirement strategy, these steps can help you understand how to build a substantial retirement nest egg. We’ll cover tips that range from harnessing the power of time and compound interest to increasing your contributions automatically.

Check out the article to get tips from a 401(k) plan expert.

Saving for College: Is a 529 College Saving Plan Right for You?

As the cost of education rises, Americans are borrowing more than ever before. In fact, according to Federal Student Aid, over 

 Americans have student loan debt. Opening a 529 tax-advantaged savings plan is a great way to get ahead of future education expenses. With a 529 plan, not only can savers make contributions to their accounts, but their money is able to grow while they save.

In this article, we discuss how 529 plans work, review their advantages, and demonstrate how effective they can be for education savings.

Student Loan Savings: 5 Programs to Improve Your College Saving Experience

Not everyone can get ahead of future education debt, and borrowing is often inevitable for students. But the good news is that if you have student debt, there are federal programs available to help you.

We'll explore programs such as the American Opportunity Credit, the Student Loan Interest Deduction, and others to demonstrate how you can maximize your educational investments.

ABLE to Save: Could an ABLE Account Be Right for You?

For Americans with disabilities and their caregivers, ABLE savings accounts have been a key tool in the quest for equitable saving. Did you know that around 

 individuals are eligible for an ABLE savings account, but 

Nearly 1 in 24 Americans are eligible to participate in these tax-advantaged savings accounts designed for Americans with disabilities to save for “qualified expenses.” Funds in ABLE accounts can be used to cover many types of expenses, from healthcare to housing and more.

For a full list of what account funds can be used for, plus information on whether an ABLE account may be right for you, check out our blog.

There’s no better time than the present to start saving, take control of your financial future, and set yourself up for lasting success. To register your Vestwell account, increase your savings rate, or track your progress, click 

Want to learn more about key financial concepts for savers? Click 

 to access the Vestwell University learning portal and view modules on 401(k) basics, contributions, and more.

Saving for your future can help you be prepared for emergencies, make long-term investments, and ultimately achieve financial security. However, with 78% of Americans living paycheck to paycheck, building up a rainy day fund can be challenging.

We’ve compiled a few key resources to help you achieve your savings goals—regardless of your financial situation. From preparing for retirement and educational expenses to savings options for Americans with disabilities, we're here to assist you in your savings journey.

Let’s dive in!



Take Control of Your Retirement Savings

401(k) Basics: A Starter Guide to Understanding Your Retirement Plan

Retirement is a major milestone that requires significant savings, but it’s often overlooked. In fact, according to the Federal Reserve, more than 45% of working-age households do not have a retirement savings account.

Does your employer offer a 401(k) plan as a part of their company benefits package, but you’re not sure where to begin? Starting out can feel overwhelming—from deciding how much to contribute to your account to choosing the right investments. Check out our blog for a user-friendly guide to the basics of 401(k) plans. Learn how you can leverage your employee benefits to save for the living expenses and costs you may incur in your golden years.

What’s the Difference Between Pre-Tax and Roth 401(k) Contributions?

When it comes to retirement, it’s never too early to start saving. It’s important to begin setting aside funds as soon as you can to set yourself up for future success.

The first step in saving for retirement is understanding the different ways you can contribute to your account. Our blog linked below gives an overview of the different types of 401(k) plan contributions for those just starting out on their retirement savings journey.

5 Steps to Becoming a Retirement Millionaire

Do you know what it takes to become a retirement millionaire? In this article, Richard Tatum, Vestwell’s President of Workplace Savings, shares five tips on saving for retirement that can help you reach your retirement goals. If you're just beginning your career or looking to optimize your retirement strategy, these steps can help you understand how to build a substantial retirement nest egg. We’ll cover tips that range from harnessing the power of time and compound interest to increasing your contributions automatically.

Check out the article to get tips from a 401(k) plan expert.

Make the Most of Education Savings

Saving for College: Is a 529 College Saving Plan Right for You?

As the cost of education rises, Americans are borrowing more than ever before. In fact, according to Federal Student Aid, over 40 million Americans have student loan debt. Opening a 529 tax-advantaged savings plan is a great way to get ahead of future education expenses. With a 529 plan, not only can savers make contributions to their accounts, but their money is able to grow while they save.

In this article, we discuss how 529 plans work, review their advantages, and demonstrate how effective they can be for education savings.

Student Loan Savings: 5 Programs to Improve Your College Saving Experience

Not everyone can get ahead of future education debt, and borrowing is often inevitable for students. But the good news is that if you have student debt, there are federal programs available to help you.

We'll explore programs such as the American Opportunity Credit, the Student Loan Interest Deduction, and others to demonstrate how you can maximize your educational investments.

Explore Additional Savings Opportunities

ABLE to Save: Could an ABLE Account Be Right for You?

For Americans with disabilities and their caregivers, ABLE savings accounts have been a key tool in the quest for equitable saving. Did you know that around 8 million individuals are eligible for an ABLE savings account, but less than 150,000 have opened one?

Nearly 1 in 24 Americans are eligible to participate in these tax-advantaged savings accounts designed for Americans with disabilities to save for “qualified expenses.” Funds in ABLE accounts can be used to cover many types of expenses, from healthcare to housing and more.

For a full list of what account funds can be used for, plus information on whether an ABLE account may be right for you, check out our blog.

Conclusion

There’s no better time than the present to start saving, take control of your financial future, and set yourself up for lasting success. To register your Vestwell account, increase your savings rate, or track your progress, click here.

Want to learn more about key financial concepts for savers? Click here to access the Vestwell University learning portal and view modules on 401(k) basics, contributions, and more.




Empowering Financial Success: Resources for Savers

 of Delaware’s population aged 50 and older and 

 seniors relying on their social security for the bulk of their income, there was a call for change in the Diamond State.

Delaware has passed legislation to establish a state-run retirement savings program for private-sector employees.

 of private sector workers in Delaware without access to an employer-sponsored retirement plan, this state program, named Delaware EARNS, will give those employees a chance to save for their golden years.

In this article, we’ll answer some questions you may have about the 

 program and explain how it affects Delaware businesses.

Delaware EARNS is a government-sponsored savings program created to help employees working in the state build savings for retirement. 

Delaware business owners who meet certain criteria will be required by law to offer a qualified, employer-sponsored retirement plan or enroll their employees in the program.

Delaware employees will make contributions to the program through automatic deductions from their paycheck into a Roth individual savings account (Roth IRA) unless they choose to opt out. 

With about 40% of Delaware’s population aged 50 and older and one out of every five seniors relying on their social security for the bulk of their income, there was a call for change in the Diamond State.

Delaware has passed legislation to establish a state-run retirement savings program for private-sector employees. With 38% of private sector workers in Delaware without access to an employer-sponsored retirement plan, this state program, named Delaware EARNS, will give those employees a chance to save for their golden years.

In this article, we’ll answer some questions you may have about the Delaware EARNS program and explain how it affects Delaware businesses.



How Does Delaware EARNS Work?

Delaware EARNS is a government-sponsored savings program created to help employees working in the state build savings for retirement. Delaware business owners who meet certain criteria will be required by law to offer a qualified, employer-sponsored retirement plan or enroll their employees in the program.

Delaware employees will make contributions to the program through automatic deductions from their paycheck into a Roth individual savings account (Roth IRA) unless they choose to opt out. The money in the account will grow tax-free, and employees won't have to pay income tax on any money they withdraw from their account during retirement.

The program is overseen by the Delaware EARNS Program Board but administered by private sector partners. The program is set to launch in 2024.

Which Businesses Are Affected?

According to the Delaware EARNS website, employers who meet the following criteria are required to register for the program or certify an exemption:

Employs 5 or more workers

Has been in business for at least 6 months

Does not currently offer a qualified, employer-sponsored retirement plan to their employees

Registration Deadline

Delaware EARNS is set to launch in July of 2024. Program deadlines for businesses are based on company size. The current deadline is as follows:

Employers with 5 or more employees | October 15, 2024

Penalties

Once the program launches, impacted businesses must offer a plan or will face a penalty of $250 per eligible employee per year (up to a max of $5,000 annually).

Who Is Eligible to Save With the Delaware EARNS Program?

Most individuals who are 18 years or older and have earned income in the state of Delaware for at least 120 days are eligible to participate in Delaware EARNS.

The program is voluntary for employees, and they can change their contribution amount or opt-out at any time.

Conclusion

The Delaware EARNS program represents a notable development in retirement planning for Delaware workers. Automatic enrollment and contributions made directly through payroll deductions simplify the process of setting aside funds for retirement.

Once it launches, the program will require businesses with 5 or more employees that have been operating for 6 months or more to either register and facilitate Delaware EARNS or certify an exemption, so it’s important for Delaware employers to familiarize themselves with the program details and requirements.

Looking for information on the requirements for other states? Check out our resource page here.

Featured Resources

Featured Resources

Featured Resources

Blog

GETTING STARTED

Everything You Need
to Get Started

2024 Vestwell Savings Industry Report

Explore insights from Vestwell's annual saver survey.

What's New

Empowering Financial Success: Resources for Savers

The Delaware EARNS Program: Everything You Need to Know

SECURE 2.0 for Employers: A Guide to Retirement Plan Eligibility for Part-Time Employees

Vestwell Savings Report: The Evolution of Workplace Retirement Plans From Perk to Prerequisite

The New York State Secure Choice Savings Program: Everything You Need to Know

The Power of Women: How Female Advisors Can Make a Difference

Vestwell Savings Report: Embracing Personalized Financial Wellness Solutions in the Workplace

SECURE 2.0 for Employers: A Guide to the Retirement Plan Auto-Enrollment Requirement

Beyond the Books: Leveraging Technology for Financial Empowerment

What’s the Difference Between Pre-Tax and Roth 401(k) Contributions?

Unlocking Growth: How Carbon Collective Expanded Their Retirement Business With Vestwell

Profit-Sharing Made Possible: A Simple Solution for a Complex Plan

Learn more about Vestwell's modern savings solutions.

Featured Resources

Featured Resources

Featured Resources

Blog

GETTING STARTED

Everything You Need to Get Started

2024 Vestwell Savings Industry Report

Explore insights from Vestwell's annual saver survey.

Empowering Financial Success: Resources for Savers

The Delaware EARNS Program: Everything You Need to Know

SECURE 2.0 for Employers: A Guide to Retirement Plan Eligibility for Part-Time Employees

Vestwell Savings Report: The Evolution of Workplace Retirement Plans From Perk to Prerequisite

The New York State Secure Choice Savings Program: Everything You Need to Know

The Power of Women: How Female Advisors Can Make a Difference

Vestwell Savings Report: Embracing Personalized Financial Wellness Solutions in the Workplace

SECURE 2.0 for Employers: A Guide to the Retirement Plan Auto-Enrollment Requirement

Beyond the Books: Leveraging Technology for Financial Empowerment

What’s the Difference Between Pre-Tax and Roth 401(k) Contributions?

Unlocking Growth: How Carbon Collective Expanded Their Retirement Business With Vestwell

Profit-Sharing Made Possible: A Simple Solution for a Complex Plan

Everything You Need
to Get Started