The Paid Family Leave (“PFL”) law coming into effect on January 1, 2018 will be employee funded. The PFL benefits will be provided through insurance coverage, included under the employer’s mandatory disability benefits policy. Due to the intricacies of the law, it is important for employers to fully understand and prepare for the new requirements heading into July. While coming into effect in January, employers are eligible to start deducting from payroll beginning in July in order to fund the policy.
The second-best investment you can make is paying off high interest rate debt. That could come after you’ve contributed enough to your 401(k) to get a full match from your employer. What should come next? If you have no expensive debt to pay down and you’re getting the full employer match, where should you direct your money? Here are some suggestions.
Investors may put together their own asset allocation, or they might work with an investment professional. Either way, the challenge is to maintain the desired allocation through the ups and downs of the financial markets. The answer generally recommended by financial advisors is to rebalance periodically.
Among major corporations, 401(k) plans have become common, but even the smallest of businesses can have a 401(k) plan for retirement. One-participant 401(k) plans, known by names such as Solo 401(k) and Uni-k, are available. For some business owners and self-employed individuals, Solo 401(k)s may offer a chance to save more for retirement with tax advantages compared with other small business retirement plans.
It's important to know what to expect if you are audited. Furthermore, understanding your options may help you proactively address the risk and to assess how to administer benefit plans to your employees.
Traditional defined benefit plans, structured to provide a lifelong pension, have become rare in the private sector. They’re still the norm for public sector employers; some large companies continue to offer plans. Ironically, these plans might be a good fit for extremely small companies. A possible prospect could be a business or professional practice with one or two principals who are perhaps 5–10 years from retirement, with a few employees who are younger and modestly compensated.
Though winter managed to hit us with one last, dizzying storm Stella, many of us were inside earlier this month dreaming of summer. Many people are planning vacations now for later this year. At this time, you might be weighing the purchase of a second home specifically for vacations. Here are some of the issues to think about, so you can make a well-reasoned decision.