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How the Ongoing Evolution of the Fiduciary Rule Affects Small Business Owners

by Tom SmithMarch 28, 2018 8:00 AM

The fiduciary rule has had a bumpy ride in the past few years. After initially going into partial effect in June of 2017 and targeting Jan. 1, 2018 for a full rollout, the move to have all financial professionals who work with retirement plans follow the same fiduciary ethics and standards was postponed until July 1, 2019. Now MarketWatch reports that the Fifth Circuit Court “struck down the Labor Department’s fiduciary rule” in a split decision Thursday, March 15, 2018.

This may not be the end of the fiduciary rule, however. According to Forbes Contributor David Trainer, the fiduciary rule may still make an impact even after being struck down. Trainer writes “While the ruling could end the Fiduciary Rule as law, it cannot erase the awareness the DOL [Department of Labor] raised, nor can it stop market forces leading the business towards a more ethical place.”  

So, what does this mean for business owners? The fiduciary rule wasn’t designed to directly impact you as an owner, but it does affect the financial advisors connected to your business. Here’s a quick rundown of how the fiduciary rule can still make an impression on financial advisors and what that may mean for your business.

Financial advisors for a small business 401(k) plan.

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Benefits

The Benefits of Profit Sharing for Small Businesses

by Tim AustinMarch 6, 2018 8:00 AM

After a great year, giving back to your employees can be very beneficial for your business. CNBC cites that “more than half of small business owners say that offering a [retirement] plan helps attract better employees.” A profit sharing plan is one way that you can use your business’ financial success to you and your employees’ benefit.

Image of a profit sharing plan.

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Benefits

How PEOs Can Help Small Businesses Use Economy of Scale to Benefit Their 401(k) Plans

by Tom SmithMay 30, 2017 8:00 AM

It can be very difficult for small business owners to compete with big companies when it comes to 401(k) plans. Due to their size, large corporations can use economy of scale to their advantage and offer attractive retirement plans that are more affordable due to the size of their employee base. 

Small business owners don’t have hundreds of employees to their name, but that doesn’t mean that they can’t have access to economies of scale through other resources. 

Image of a smal business 401(k) plan

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Benefits

How Retirement Plan Struggles Can Affect Small Businesses

by Matt SchoolcraftJanuary 31, 2017 8:00 AM

Americans work the majority of their lives with the hope of one day retiring and enjoying the fruits of their labor. Unfortunately, more and more people have to work well into their golden years without any end in sight. This is especially true for people that work for small businesses for the bulk of their career.

Image of an employee with no money. Learn about the importance of a 401k and retirment plan for small businesses.

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Benefits

The Benefits of a PEO: 401(k) Plans and Profit Sharing

by Tim AustinJune 20, 2016 8:00 AM

When you’re a business owner, a 401(k) or profit sharing plan is a must to help attract and retain great employees.

While you may be the owner of a company, you’re likely not an expert on the legal responsibilities of offering these plans to your employees. Most business owners are too focused on running their company to provide an adequate amount of attention on benefits administration.

Your benefits don’t have to be a hassle. A Professional Employer Organization (PEO) can step in and cut costs, save time, and offer customizable plans for your company.

GMS can help business owners offer appealing 401(k) and profit sharing plans.

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Benefits

401(k) Testing: What is That About?

by Tom SmithMay 9, 2013 10:14 AM

I receive this question very often, especially at the beginning of each year. The IRS requires any company with a 401(k) plan to conduct annual compliance testing.

The testing is conducted after the plan’s year-end. For most plans, this is 12/31.

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