Mandatory Employer Sign-ups for CalSavers Have Begun

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If your company does not offer its staff a 401(k) plan, you need to be aware of deadlines for registering your employees in the CalSavers Retirement Savings Program. The program is designed to help California workers who do not have access to an employer-sponsored retirement plan start socking away money for their retirement. Employers with five or more workers are required to give their employees access to the CalSavers program, which was launched in 2019. CalSavers deadlines Deadlines for when employers have to adopt the program depends on their size: Businesses with more than 100 employees: Sept. 30, 2020 Businesses…
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The Taxation of Long-Term Care Insurance

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THERE ARE significant federal tax benefits in purchasing long-term care insurance, but like everything else in life and business the devil is in the details. Fortunately, the Health Insurance Portability and Accountability Act provides some clarifications. In general, the income from a long-term care insurance policy is non-taxable, and the premiums paid to buy the insurance are tax-deductible. Similar tax advantages exist at the state level, but each state treats the subject differently. The fact that there are tax benefits to purchasing long-term care coverage testifies to the vital social importance of this underutilized insurance product. Tax Treatment of Premiums…
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When to Call Your Financial Advisor

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If you’re experiencing a major life change of any kind, or facing a crucial financial decision, it’s a good idea to make an appointment with your financial planner. Here are some examples of major life passages when you may need some good financial advice – and some action items to bring up: 1. Marriage. At a minimum, it’s critical to have life insurance in place to protect both spouses. Many planners also assist with budgeting tools, provide advice about spousal communications concerning money, and can help you develop a long-range financial plan together, as a couple. Other critical items to…
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Protect Yourself from Unexpectedly High Retirement Health Care Costs

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More than 40% of retirees encounter health care costs that are greater than they had anticipated or planned for. That’s according to a new study from the LIMRA Secure Retirement Institute. Here are LIMRA’s key findings: • Retirees spend 13% of their income on health and long-term care expenses, on average. • 43% of those with retirement plans still underestimate health care expenses in their golden years. Furthermore, seniors should plan for continued increases in health care costs, over and above the effects of inflation. According to HealthView Services’ 2017 Retirement Health Care Costs Data Report, health care costs are…
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Small Business Owners Should Start Now to Prepare for Retirement

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Small business owners are great at providing jobs, but in the aggregate, most are failing when it comes to preparing for a comfortable retirement for themselves and their spouses. First, most of them are reinvesting almost everything into their businesses. According to a survey from the Bank of Montreal, 58% of business owners take out less than $25,000 per year to pay themselves, and more than three-quarters say they take out less than $50,000. Only 8% of business owners reported being able to take out more than $100,000 over the past year. Meanwhile, multiples in many industries are down, and…
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Right Mix of Benefits Crucial to Hiring, Retaining Millennials

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As the millennial generation continues filtering into the workforce amid a tightening job market, nearly one-third of them have turned down a job offer because of poor insurance offerings, a new study has found. Making sure that you have the right mix of benefits, including voluntary benefits, is important considering that other studies have found that millennials are already hard to keep on the payroll. This has been underscored by studies that found that one in four millennials were considering looking for new work in the next year. In addition, they are more cautious than boomers or Gen Xers in…
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Five Ideas for Boosting 401(k) Enrollment

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While some employees understand the need to set aside money for retirement, many – especially your younger workers – likely do not. That mindset can perhaps be chalked up to inexperience and immaturity, or that they think they cannot spare the funds. But you as an employer can help generate more interest in retirement savings through motivation, education and making it relevant to your workers. As the start of 2016 looms, and with it open 401(k) plan open enrollment, it’s time to start thinking of ways to boost your employee engagement. The website taxbreakll.com has the following recommendations: • Conduct…
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