Why It's a Good Idea For Employers to
Encourage 401(k) Rollovers
people collect "orphan" 401(k) plan balances as they move from
job to job. Why should employers care?
Helping new employees roll over their accounts from former
employers can be beneficial for both parties.
The same is true of assisting
former participants (who have left your business).
One reason participants orphan their previous employers' plans
is that the process of rolling over an old 401(k) plan balance
to a new employer's plan can be cumbersome. Unfortunately,
many employees fail to properly manage their accounts even
when they have only one, let alone two or three. If you have
employees in this situation, counseling them on the benefits
of consolidating their accounts can help improve their
retirement planning while boosting morale and engagement.
As an employer, you incur risks from a high number of small,
orphaned accounts. They add to plan administration costs and
could even trigger a required independent audit. To manage
your 401(k) plan participant roster, you may be able to roll
over accounts of former participants worth relatively low
dollar amounts to an IRA in the participant's name. But you'll
need to perform due diligence in selecting an IRA provider and
implementing the process.
If your plan doesn't roll over former participants' accounts
to an outside IRA, consider advising former participants to
consult with an independent investment advisor who can help
them roll their balances into an IRA. The overall fees that
individuals pay on relatively small IRA accounts can be higher
than those on accounts held in a 401(k) plan. Also, depending
on the investments available to the participant on the
rolled-over funds, the former participant might be better off
leaving funds in the 401(k). But this is all worth discussing
with a qualified advisor.
Lower administrative costs for the plan and increased savings
for participants can benefit your company and its employees
(both current and former). For more information and
suggestions about controlling your benefits costs, please call
us. Call us at
SMEED CPA Adds Financial
Services To Help Clients With
Investments & Insurance
often we here at SMEED CPA are asked about financial issues
that impact our clients investments and their portfolios.
We always offered our opinion and suggestions but in order to
help our clients actually execute the changes we suggest,
SMEED has created a Financial Services division.
SMEED Financial Services, Inc. will be able to
work with both individual and business clients on their
investment portfolios and manage assets on their behalf.
SMEED Financial will include Michael Uadiale,
ACA, CPA, CGMA; and Pablo Blanco who has
recently joined SMEED and comes with over 18 years of
financial sales and advising experience with affluent
Watch your inbox and mail boxes for more specific information
on services SMEED Financial Services, Inc will make available
Would You Give Me Your
Feedback & Testimonial
on Our Hotline?
Hello it’s Michael Uadiale, CPA of
SMEED CPA Inc. We’ve just installed a toll-free
number that I would like for you to call and tell me how you
think we are doing as your CPA firm.
Just dial 800-609-9006
extension 3638 and follow the instructions. If we’ve
done a good job please let me know. And if we can
improve on anything, please mention that too.
Us Be Found on
Also as we expand our business,
we find more and more people are using
YELP and Google
to look for us by searching Brentwood accountant or
When they do this we want to
be FOUND on GOOGLE. One way you can help us
is to give us an
ONLINE REVIEW on our Google Maps/Places listing --->
or on our YELP local listing
click here to go to our Google Listing for SMEED CPA and
click on the
YELP link to go there.
Scroll down to the Review area.
On either site it may say: Been here?
Rate and review
You will click on the Rate and
review link and then log in, then
give us a review!
You can choose between 1 and 5
STARS and write in what you think about the tax or accounting
work we have done for you.
It's that simple. Thank
you in advance for your help and cooperation!
As always you can call our offices if you have any
questions about these or any other accounting related issues, at
Regards, Michael Uadiale, CPA,
Managing Partner, SMEED CPA,