5 Reasons To Hire the Right Financial Advisor For Your Retirement Plan

Category: Retirement Plans

5 Reasons To Hire the Right Financial Advisor For Your Retirement Plan

Posted On: September 18, 2019 | Categorized as: Retirement Plans

As an organization offering a retirement plan to their employees, plan sponsors are faced with decisions that can affect the entire organization.  The plan design, investment line-up, and who the recordkeeper will be are typical for all plans. Beyond these standard decisions, there is the issue of knowing and understanding the ERISA laws that govern retirement plans. Depending on the complexity of your organization and business, not every advisor has the background to help. Plan decision makers usually have other job responsibilities that can divert their attention, yet since they are considered fiduciaries of the plan, decision makers must act in the best interest of the plan participants and their beneficiaries.  How can they if they don’t know what the standards are?  The same is true of advisors.  Not all are well versed in ERISA law, which is complex and sometimes difficult to interpret. Hiring the right plan advisor can…


Innovative Myth Series #9: When Transferring Service Providers, There Are No Pitfalls. Part 1-Protected Benefits

Posted On: September 13, 2019 | Categorized as: Retirement Plans

A new client engaged Innovative to transfer their current plan to a new service provider. During the course of our detailed review, we discovered that certain employees had annuity contracts with death benefits that exceeded the value of their plan investments. If the client executed the transfer, these participants would have lost those benefits, which is a violation of ERISA laws. See how Innovative helped our client navigate their retirement plan transition to a new service provider and avoided a potential ERISA violation. Download full case study here. Let Innovative perform a complimentary review of your plan, contact our retirement planning team here.




Innovative Myth Series #6: Funding a Profit Sharing Plan for a Company with More Than 100 Employees Will Only Benefit My Employees

Posted On: July 17, 2019 | Categorized as: Retirement Plans

See how Innovative helped one client generate significant tax savings for their company. Download full case study here. Let Innovative perform a complimentary review of your plan, contact our retirement planning team here.                               Download full case study here. Let Innovative perform a complimentary review of your plan, contact our retirement planning team here.


The Importance of a Roth Option in Retirement Plans

Posted On: June 18, 2019 | Categorized as: Retirement Plans

Roth contributions can provide significant benefits to retirement plans for both participants and plan sponsors alike. But what does Roth mean? Unlike pre-tax, Roth refers to post-tax dollars, meaning the money has already been taxed when it goes into a participant’s account. They are beneficial to participants because qualified Roth distributions are taken tax free. Plan sponsors benefit from the after tax feature because it offers flexibility in how participants can save which improves employee retention, particularly with younger employees. 63% of 401(k) plans in the United States offer a Roth feature for participants within the plan3 . Plan sponsors that offer a Roth option allow their participants to perform tax diversification. Simply put, participants can be more flexible with how they save for retirement. Tax diversification refers to the allocation of an individual’s investments into different account types based on their tax characteristics1. This flexibility in saving will help…


Andrew May Earns Accredited Investment Fiduciary Designation

Posted On: June 18, 2019 | Categorized as: Company News, Retirement Plans

Innovative is proud to announce that Andrew May has been awarded the Accredited Investment Fiduciary designation from the Center for Fiduciary Studies, the standards-setting body for fi360. Andrew is a Financial Services Associate working in the retirement services department. He is responsible for servicing the firm’s qualified plan clients in the areas of plan consulting, compliance, financial wellness, and participant education. The AIF designation signifies specialized knowledge of fiduciary responsibility and the ability to implement policies and procedures that meet a defined standard of care. The designation is the culmination of a rigorous training program, which includes a comprehensive, closed-book final examination under the supervision of a proctor, and agreement to abide by the Code of Ethics and Conduct Standards. On an ongoing basis, completion of continuing education and adherence to the Code of Ethics and Conduct Standards are required to maintain the AIF designation.   About Innovative Innovative Benefit…


Benefits to Offering a 401(k) plan

Posted On: June 18, 2019 | Categorized as: Retirement Plans

According to the recent Jobvite’s Recruiter Nation Survey, after Healthcare, 401(k)s are considered the most valuable benefit to recruit and retain employees. Providing retirement benefits to your employees, such as 401(k) plans, is an important step in recruiting, retaining and promoting employee wellness.   Recruitment and retention: Recent trends demonstrate that recruiting for new employees is becoming more competitive. According to the 2018 Recruiter Nation Survey, 74% of recruiters believe hiring will become more competitive over the next year1. As employee recruitment becomes more competitive, it is up to the hiring organizations to set themselves apart from the pack to attract the best talent. Offering a 401(k) plan demonstrates that an organization is invested in the long-term outlook of its employees and of the organization.   Morale Boost: Providing a 401(k) to employees improves employee morale by reducing financial stress. A Study Conducted by the Social Market Foundation revealed that…


Innovative Myth Series #5: Plans With No Financial Consultant Receive The Best Fees And Fiduciary Protection From Their Qualified Plan Provider

Posted On: June 18, 2019 | Categorized as: Retirement Plans

See how Innovative's experience with reviewing "Retirement Plan Relationships" helped one client in negotiating lower administrative fees, increased services for the plan sponsor and streamlined administrative functions. Download full case study here. Let Innovative perform a complimentary review of your plan, contact our retirement planning team here.


Are Target Date Funds Right for Your Participants?

Posted On: June 18, 2019 | Categorized as: Retirement Plans

In recent years, plan sponsors have increased the inclusion of Target Date Retirement funds in their investment fund lineup. In fact, J.P. Morgan estimates that 88% of new retirement plan contributions are expected to flow into Target Date Funds by end of this year1.  Here are some of the reasons these types of investments have become so popular: Many investors are unsure about where to start investing when it comes to selecting their allocation. They are faced with questions like “What mix of stocks and bonds should I be invested in?” Target Date funds help participants reduce the stress of having to make choices when creating this mix within their retirement plan lineup. Of course, even one’s decision to use Target Date funds should be re-evaluated regularly to ensure the investment accommodates an individual’s changing needs. The answer is not always simple as to whether you should invest your contributions…



Innovative Myth Series #3: Mergers and Acquisitions are Simple

Posted On: March 22, 2019 | Categorized as: Retirement Plans

Innovative's merger and divestiture of plans consulting expertise enabled us to provide complete end -to-end service. See how we helped our client ease their administrative burden and reduce client fees by over 40%. Download full case study here. Let Innovative perform a complimentary review of your plan, contact our retirement planning team here. 




Innovative Benefit Planning Celebrates 30 Years of Business

Posted On: January 10, 2019 | Categorized as: Company News, Employee Benefits, Events, HR Consulting, Retirement Plans, Workplace Wellness

As we enter 2019, Innovative Benefit Planning celebrates 30 years of success as a national, employee benefit, and financial services company.  Founded in 1989 by Terriann Procida and Mark Sulpizio in Mt. Laurel, NJ, the firm’s vision was to provide unique employee benefit consulting and financial planning services to businesses and their executives in the Philadelphia/Southern New Jersey region.  Terriann and Mark started the company with one simple objective, to always put people first, and it’s this exact mission that has led the company to triple in size, expand practice areas and grow from a regional service area to a national company with an admirable reputation for work ethic, integrity, credibility and experience. Over the course of 30 years, Innovative’s history of outstanding service, pioneering turn-key, cost-saving plans, and technical expertise in the areas of employee benefits, financial planning, population health management and HR consulting have resulted in substantial growth…


Retirement Match on Student Loan Debt- UPDATE

Posted On: December 21, 2018 | Categorized as: Company News, Retirement Plans

In October we reported on a Private Letter Ruling the IRS issued for an employer interested in offering a student loan repayment benefit through their 401(k) plan.  While the ruling only applied to the plan and plan sponsor who requested it, we suspected at the time that the ruling would most likely expand interest in this type of program, resulting in legislative action in the future. Just this past Tuesday, Senate Finance Committee Ranking Member Ron Wyden, D-Ore., introduced legislation to allow employers to make “matching” contributions to 401(k), 403(b) and SIMPLE retirement plans while employees continue to pay their student loans. The Retirement Parity for Student Loans Act would enable employers to voluntary allow recent higher-education graduates to pay their student loans while receiving employer matching retirement plan contributions. Employers would attribute the student loan payments as salary reduction contributions made to the retirement plan. To read full details of the…


Let’s Discuss Tax Relief from Your 199A Deduction

Posted On: December 7, 2018 | Categorized as: Company News, Retirement Plans

Earlier this week we discussed the Tax Cuts and Jobs Act of 2017 and the limits placed on the deductibility of State and Local taxes for 2018. Now let’s discuss your 199A deduction. For many owners of pass-through entities, the new 199A deduction will generate welcome tax relief in 2018.  If your business qualifies based on your industry, you may be able to claim up to a 20% deduction of certain income. In addition, there may be an opportunity for you to use the savings and further reduce your tax burden in 2018.  This may be accomplished by optimizing your retirement plan design.  Often overlooked, there are designs available that can tailor benefits to business owners. At Innovative, we’ve implemented many of these designs over the years, generating significant tax benefits for our clients.   A simple analysis can illustrate the benefits of this approach, which can easily be adopted prior…


There May Be a Simple Solution to Decrease the 2018 Tax Burden Through a Customized Retirement Plan Design

Posted On: December 4, 2018 | Categorized as: Company News, Retirement Plans

The Tax Cuts and Jobs Act of 2017 have limited the deductibility of State and Local taxes for 2018.  As a result, many high earners may be subject to additional taxes this year.  However, there may be a simple solution to decrease the 2018 tax burden through a customized retirement plan design. At Innovative, we have extensive experience helping companies design and implement retirement plans that generate significant tax deductions for the principals and owners of the business. These strategies can be implemented under your existing retirement plan without requiring a change in service providers.   Action must be taken before year-end to impact your 2018 taxes. It’s not too late. If you are interested in learning more about how a customized retirement plan design may help minimize taxes,  please contact our office.


Student Loan Considerations for Plan Sponsors-Part Two

Posted On: October 17, 2018 | Categorized as: Company News, Employee Benefits, Retirement Plans

As a follow up to our first article on student loan debt, its impact on employers and the recent IRS Private Letter Ruling (PLR) regarding student loan repayments, we’ve attached a summary of items to consider when contemplating this type of arrangement.  As this ruling has just been released, we can expect additional items in the future. Plan sponsor considerations: The PLR only applies to the plan sponsor that requested it – it should not be used as general guidance The participant loan repayments do not count towards the Average Deferral Percentage (ADP) Testing. The Employer contribution relating to the loan payment will not count towards the Average Contribution Percentage (ACP) testing. Depending on whether highly compensated or non-highly compensated participants are making loan repayments, this could represent challenges to employers who already have testing issues. In other words, it may be necessary to limit the program to the non-highly…


IRS Allows 401K Match for Student Loan Repayments

Posted On: October 15, 2018 | Categorized as: Company News, Retirement Plans

The IRS recently issued a Private Letter Ruling (PLR) for an employer interested in offering a student loan repayment benefit through their 401(k) plan.  While the ruling only applies to the plan and plan sponsor who requested it, the ruling will most likely expand interest in this type of program, resulting in legislative action in the future. For employees, student loan debt has swelled in recent years, creating a financial burden and limiting their ability to save for retirement. For employers, high debt levels can lead to financial stress, which studies have shown leads to lower productivity.  As a result, many employers are implementing programs to address student loan debt and in turn, will assist in recruiting and retaining the best talent. These programs include access to debt refinancing services, signing bonuses, and loan reimbursement programs.  Many of these programs are helpful but offer no tax benefits to the employee. …


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