A Benchmark Report
Each year Judy Diamond Associates compiles a benchmark report on the 401(k) performance in the past year. Reviewing the information in this report can prove to be very useful. How? This report will allow you to compare the performance of your plan to other 401(k) Plans.
For the 2020 Plan year, the report indicated that plans overall gained about $1 trillion in value. This amounts to approximately a 20 percent jump in value over the previous year. Total contributions from both employees and employers have increased about 8 percent. The report's data indicates that the savings rates have not necessarily increased but more individuals are participating in their company 401(k) plans.Industries with the most participation in 401(k) plans per the study were:
- Financial advisory firms
- Certified public accounting firms
- Law firms
- Insurance providers and brokers
- Mining and utilities
If you are a 401(k) Plan Sponsor or administrator, you want to know that your plan is up to par in comparison to other 401(k) Plans and that you are helping your employees save for their retirement.
There is much more information included in this benchmark report. If you would like additional details contained in this report please follow this link: https://www.judydiamond.com/products/401k-benchmark-report/
At Summit CPA, we understand that plan administration can be a huge burden to companies especially with all the complexities added due to the pandemic. However, don’t let your guard down regarding your 401(k) plan. It is an important responsibility of the plan fiduciaries to ensure compliance at all times. A review of current compliance and administration now will help make the start of 2021 a little less stressful. For more information on how we can help, contact our office at (866) 497-9761.