Three Headaches HR Wishes Their Bosses Understood About Running the 401(k)
Three Headaches HR Wishes Their Bosses Understood About Running the 401(k)
A retirement plan should support the people who run it, instead of burning them out.
The company offers a 401(k), and that’s great. It’s a competitive benefit that many employees value. A growing number of states even require it, but regardless, putting a retirement-plan benefit in place sends the right message about a business’s committed investment in the team.
But somebody has to keep it running. More often than not, that somebody works in HR and never asked to moonlight as a retirement plan technician.
Here are three things they’d probably like their boss to know about what it really takes to run a 401(k) behind the scenes.
1) No, It Doesn't Just Run Itself
Every pay period, contributions need to be uploaded, matched, verified, and posted. If your 401(k) provider doesn’t integrate with payroll (and most legacy ones don’t), that means downloading a file from one system, updating it in Excel, and uploading it somewhere else.
Miss a cell when copying and pasting, and you may very well have just tripped a compensation definition violation.
Rolls right off the tongue, doesn’t it? It’s one of the more common 401(k) flubs, and guess who has to fix it before you get tagged for a compliance issue.
2) It's Not Always Clear Who's Responsible
Is it the recordkeeper’s job to spot the error? The third-party administrator’s job to validate eligibility? Do we cc Pam in Accounting, or does she only handle loan repayments now?
In fragmented 401(k) setups (which, again, are pretty common), responsibility gets split across multiple vendors and internal teams. So, when someone submits a late remittance, or a deferral change never went through, it’s a pain to fix. Moreover, it’s not always clear who’s supposed to fix it.
Usually an HR staffer is left in the lurch as a go-between, fielding emails like a part-time referee. There are nightmare scenarios out there.
3) Answering Employee Questions Is More Difficult Than It Should Be
When someone’s paycheck is short because of a loan repayment they didn’t expect, or when they max out early on annual contributions and get sent a refund with no context, they don’t email the recordkeeper. They come to HR.
And while HR is perfectly capable of explaining contribution limits or vesting schedules, they’re not trained for those edge-case instances. It’s frustrating to watch a confused employee try to make sense of a benefit that just made their paycheck worse.
Let HR Be Heard
If any of this sounds familiar, it might be time to audit your current setup. A retirement plan should support the people who run it, instead of burning them out.
Your HR team is already doing a lot. The right tools can go a long way in giving them more time, clarity, and sanity.
If your 401(k) is causing HR headaches, it might be worth considering a simpler setup.
No communication by Basic Capital Group Inc. ("BCG"), or any of its affiliates (collectively, "Basic Capital"), through this website or any other medium, should be construed or is intended to be a recommendation to purchase, sell or hold any security or otherwise to be investment, tax, financial, accounting, legal, regulatory or compliance advice, except for specific investment advice that may be provided by Basic Capital Advisors, LLC pursuant to a written advisory agreement between such entity and the recipient.
The accounts, strategies and/or investments discussed in this material may not be suitable for all investors. The appropriateness of a particular account or investment strategy will depend on an investor’s individual circumstances and objectives. Investors should carefully consider their investment objectives and risks, as well as charges and expenses of Basic Capital before investing. Basic Capital investments should only be part of your overall investment portfolio.
This website provides preliminary and general information about the Securities and is intended for initial reference purposes only. It does not summarize or compile all the applicable information. This website does not constitute an offer to sell or buy any securities. No offer or sale of any Securities will occur without the delivery of confidential offering materials and related documents. This information contained herein is qualified by and subject to more detailed information in the applicable offering materials.
Basic Capital Group Inc, is the direct owner of Basic Capital Markets LLC. Basic Capital Markets LLC has not yet been approved as a member of FINRA/SIPC.
Basic Capital Advisors LLC’s internet-based advisory and administrative services are designed to assist clients in achieving customer defined financial goals. They are not intended to provide comprehensive tax advice or provide comprehensive financial planning with respect to all aspects of your financial situation, nor do they account for specific investments held outside our platform. Investing in securities carries inherent risks, including the possibility of losing money. While asset allocation and diversification aim to manage risk, they do not ensure profits or protect against losses, and past performance does not guarantee future outcomes.
Any financial projections or returns shown on the website are estimated predictions of performance only, are hypothetical, are not based on actual investment results and are not guarantees of future results. Estimated projections do not represent or guarantee the actual results of any transaction, and no representation is made that any transaction will, or is likely to, achieve results or profits similar to those shown. In addition, other financial metrics and calculations shown on the website (including amounts of principal and interest repaid) have not been independently verified or audited and may differ from the actual financial metrics and calculations for any investment, which are contained in the investors’ portfolios. Any investment information contained herein has been secured from sources that Basic Capital believes are reliable, but we make no representations or warranties as to the accuracy of such information and accept no liability therefore.
Private placement investments are not bank deposits (and thus not insured by the FDIC or by any other federal governmental agency), are not guaranteed by Basic Capital or any other party, and MAY lose value. Neither the Securities and Exchange Commission nor any federal or state securities commission or regulatory authority has recommended or approved any investment or the accuracy or completeness of any of the information or materials provided by or through the website. Investors must be able to afford the loss of their entire investment.
In-app investment advisory services are provided by Basic Capital Advisors LLC ("Basic Capital Advisors"), an SEC registered investment adviser, and a wholly owned subsidiary of Basic Capital Group Inc, a Section C Delaware Corporation.In-app brokerage and custody services are provided by Apex Fintech Solutions LLC, member FINRA/SIPC. IRA plans are provided by Apex Custody Solutions and opened via the Basic Capital application.
Basic Capital is not a bank. Certain services are offered through Plaid, Fragment, Apex and Footprint and none of such entities is affiliated with Basic Capital. By using the services offered by any of these entities you acknowledge and accept their respective disclosures and agreements, as applicable.
Basic Capital, 137 Grand Street, 4th Floor, New York, NY 10013. 855-800-8322
Articles or information from third-party media outside of this domain may discuss Basic Capital or relate to information contained herein, but Basic Capital does not approve and is not responsible for such content.
Investments in private placements are speculative and involve a high degree of risk and those investors who cannot afford to lose their entire investment should not invest.Investing in private placements requires long-term commitments, and the ability to afford to lose the entire investment.
Investment advisory services are only provided to clients of Basic Capital Advisors, LLC, an investment advisor registered with the Securities and Exchange Commission, pursuant to a written advisory agreement.
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© 2024 Basic Capital. All rights reserved.
No communication by Basic Capital Group Inc. ("BCG"), or any of its affiliates (collectively, "Basic Capital"), through this website or any other medium, should be construed or is intended to be a recommendation to purchase, sell or hold any security or otherwise to be investment, tax, financial, accounting, legal, regulatory or compliance advice, except for specific investment advice that may be provided by Basic Capital Advisors, LLC pursuant to a written advisory agreement between such entity and the recipient.
The accounts, strategies and/or investments discussed in this material may not be suitable for all investors. The appropriateness of a particular account or investment strategy will depend on an investor’s individual circumstances and objectives. Investors should carefully consider their investment objectives and risks, as well as charges and expenses of Basic Capital before investing. Basic Capital investments should only be part of your overall investment portfolio.
This website provides preliminary and general information about the Securities and is intended for initial reference purposes only. It does not summarize or compile all the applicable information. This website does not constitute an offer to sell or buy any securities. No offer or sale of any Securities will occur without the delivery of confidential offering materials and related documents. This information contained herein is qualified by and subject to more detailed information in the applicable offering materials.
Basic Capital Group Inc, is the direct owner of Basic Capital Markets LLC. Basic Capital Markets LLC has not yet been approved as a member of FINRA/SIPC.
Basic Capital Advisors LLC’s internet-based advisory and administrative services are designed to assist clients in achieving customer defined financial goals. They are not intended to provide comprehensive tax advice or provide comprehensive financial planning with respect to all aspects of your financial situation, nor do they account for specific investments held outside our platform. Investing in securities carries inherent risks, including the possibility of losing money. While asset allocation and diversification aim to manage risk, they do not ensure profits or protect against losses, and past performance does not guarantee future outcomes.
Any financial projections or returns shown on the website are estimated predictions of performance only, are hypothetical, are not based on actual investment results and are not guarantees of future results. Estimated projections do not represent or guarantee the actual results of any transaction, and no representation is made that any transaction will, or is likely to, achieve results or profits similar to those shown. In addition, other financial metrics and calculations shown on the website (including amounts of principal and interest repaid) have not been independently verified or audited and may differ from the actual financial metrics and calculations for any investment, which are contained in the investors’ portfolios. Any investment information contained herein has been secured from sources that Basic Capital believes are reliable, but we make no representations or warranties as to the accuracy of such information and accept no liability therefore.
Private placement investments are not bank deposits (and thus not insured by the FDIC or by any other federal governmental agency), are not guaranteed by Basic Capital or any other party, and MAY lose value. Neither the Securities and Exchange Commission nor any federal or state securities commission or regulatory authority has recommended or approved any investment or the accuracy or completeness of any of the information or materials provided by or through the website. Investors must be able to afford the loss of their entire investment.
In-app investment advisory services are provided by Basic Capital Advisors LLC ("Basic Capital Advisors"), an SEC registered investment adviser, and a wholly owned subsidiary of Basic Capital Group Inc, a Section C Delaware Corporation.In-app brokerage and custody services are provided by Apex Fintech Solutions LLC, member FINRA/SIPC. IRA plans are provided by Apex Custody Solutions and opened via the Basic Capital application.
Basic Capital is not a bank. Certain services are offered through Plaid, Fragment, Apex and Footprint and none of such entities is affiliated with Basic Capital. By using the services offered by any of these entities you acknowledge and accept their respective disclosures and agreements, as applicable.
Basic Capital, 137 Grand Street, 4th Floor, New York, NY 10013. 855-800-8322
Articles or information from third-party media outside of this domain may discuss Basic Capital or relate to information contained herein, but Basic Capital does not approve and is not responsible for such content.
Investments in private placements are speculative and involve a high degree of risk and those investors who cannot afford to lose their entire investment should not invest.Investing in private placements requires long-term commitments, and the ability to afford to lose the entire investment.
Investment advisory services are only provided to clients of Basic Capital Advisors, LLC, an investment advisor registered with the Securities and Exchange Commission, pursuant to a written advisory agreement.
Our site uses a third party service to match browser cookies to your mailing address. We then use another company to send special offers through the mail on our behalf.
© 2024 Basic Capital. All rights reserved.
No communication by Basic Capital Group Inc. ("BCG"), or any of its affiliates (collectively, "Basic Capital"), through this website or any other medium, should be construed or is intended to be a recommendation to purchase, sell or hold any security or otherwise to be investment, tax, financial, accounting, legal, regulatory or compliance advice, except for specific investment advice that may be provided by Basic Capital Advisors, LLC pursuant to a written advisory agreement between such entity and the recipient.
The accounts, strategies and/or investments discussed in this material may not be suitable for all investors. The appropriateness of a particular account or investment strategy will depend on an investor’s individual circumstances and objectives. Investors should carefully consider their investment objectives and risks, as well as charges and expenses of Basic Capital before investing. Basic Capital investments should only be part of your overall investment portfolio.
This website provides preliminary and general information about the Securities and is intended for initial reference purposes only. It does not summarize or compile all the applicable information. This website does not constitute an offer to sell or buy any securities. No offer or sale of any Securities will occur without the delivery of confidential offering materials and related documents. This information contained herein is qualified by and subject to more detailed information in the applicable offering materials.
Basic Capital Group Inc, is the direct owner of Basic Capital Markets LLC. Basic Capital Markets LLC has not yet been approved as a member of FINRA/SIPC.
Basic Capital Advisors LLC’s internet-based advisory and administrative services are designed to assist clients in achieving customer defined financial goals. They are not intended to provide comprehensive tax advice or provide comprehensive financial planning with respect to all aspects of your financial situation, nor do they account for specific investments held outside our platform. Investing in securities carries inherent risks, including the possibility of losing money. While asset allocation and diversification aim to manage risk, they do not ensure profits or protect against losses, and past performance does not guarantee future outcomes.
Any financial projections or returns shown on the website are estimated predictions of performance only, are hypothetical, are not based on actual investment results and are not guarantees of future results. Estimated projections do not represent or guarantee the actual results of any transaction, and no representation is made that any transaction will, or is likely to, achieve results or profits similar to those shown. In addition, other financial metrics and calculations shown on the website (including amounts of principal and interest repaid) have not been independently verified or audited and may differ from the actual financial metrics and calculations for any investment, which are contained in the investors’ portfolios. Any investment information contained herein has been secured from sources that Basic Capital believes are reliable, but we make no representations or warranties as to the accuracy of such information and accept no liability therefore.
Private placement investments are not bank deposits (and thus not insured by the FDIC or by any other federal governmental agency), are not guaranteed by Basic Capital or any other party, and MAY lose value. Neither the Securities and Exchange Commission nor any federal or state securities commission or regulatory authority has recommended or approved any investment or the accuracy or completeness of any of the information or materials provided by or through the website. Investors must be able to afford the loss of their entire investment.
In-app investment advisory services are provided by Basic Capital Advisors LLC ("Basic Capital Advisors"), an SEC registered investment adviser, and a wholly owned subsidiary of Basic Capital Group Inc, a Section C Delaware Corporation.In-app brokerage and custody services are provided by Apex Fintech Solutions LLC, member FINRA/SIPC. IRA plans are provided by Apex Custody Solutions and opened via the Basic Capital application.
Basic Capital is not a bank. Certain services are offered through Plaid, Fragment, Apex and Footprint and none of such entities is affiliated with Basic Capital. By using the services offered by any of these entities you acknowledge and accept their respective disclosures and agreements, as applicable.
Basic Capital, 137 Grand Street, 4th Floor, New York, NY 10013. 855-800-8322
Articles or information from third-party media outside of this domain may discuss Basic Capital or relate to information contained herein, but Basic Capital does not approve and is not responsible for such content.
Investments in private placements are speculative and involve a high degree of risk and those investors who cannot afford to lose their entire investment should not invest.Investing in private placements requires long-term commitments, and the ability to afford to lose the entire investment.
Investment advisory services are only provided to clients of Basic Capital Advisors, LLC, an investment advisor registered with the Securities and Exchange Commission, pursuant to a written advisory agreement.
Our site uses a third party service to match browser cookies to your mailing address. We then use another company to send special offers through the mail on our behalf.
© 2024 Basic Capital. All rights reserved.