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A profit sharing 401(k) plan is one that allows employers to make discretionary contributions to their employees’ retirement accounts based on company profits. These profit-sharing contributions supplement the traditional 401(k) structure, providing an additional tactic for employees to build their retirement savings. The amount contributed in a profit-sharing 401(k) can vary year-to-year depending on the profits made each year by the organization - offering flexibility for companies to align contributions with business performance. Offering a profit-sharing plan shows employees that the company is invested in their long-term financial success. Employers can deduct contributions made to such a plan, reducing their overall taxable income. For employees, who can make their own pre-tax contributions to the plan, they gain more control over how much they set aside for retirement per year. With the employer’s additional contributions, this makes for a strong savings strategy.

The SECURE 2.0 Act is legislation aimed at modernizing the retirement system and increasing retirement savings. It builds on the 2019 SECURE Act and contains 90 provisions that will have an impact on most plans, starting in 2023. You can learn more about SECURE 2.0 on this Slavic401k page.

There are billions of dollars in neglected, forgotten retirement accounts across the country today, with an average of nine jobs for workers between 18 and 36 years old explaining how a 401(k) plan can get forgotten or left behind during a job transition. Contacting a former employer, consulting a financial advisor, as well as reviewing your personal records for mentions of 401(k) accounts are good starting points to locate missing 401(k) funds. There are also national online tools to help you with your search. See our page here for more information.

Think of it as a bonus for your future. For every dollar you contribute to your 401(k) plan, your employer contributes too—sometimes up to a specific percentage of your salary. Up to a certain level, the more you invest in your plan, the more your employer contributes as well. From a participant standpoint, matching contributions is important because it doubles your retirement savings and provides income tax benefits, since contributions made into a tax-advantaged 401(k) plan won’t be taxed until you withdraw the funds.

There is no official “vested” 401(k) plan. Rather, “vesting” refers to your ownership of the funds in the 401(k) account. All money that you as the participating employee invest in your retirement account are yours permanently and legally. However, any matching funds that your employer adds to your retirement savings are not necessarily yours immediately - they become yours only after you meet certain vesting requirements, usually defined by the company's vesting schedule. "Vesting" essentially refers to ownership, meaning you have earned the right to keep the money your employer contributes to your 401(k) plan.

Slavic's Wealth Management advisors will help you identify a financial plan, which we believe will help you achieve your dreams and protect your wealth assets from life’s unexpected moments. INVESTMENT AND BUDGETING With information you supply, a Slavic Wealth Management consultant can help you analyze and project expenses, create a budget, and suggest ways to implement a saving and investment strategy to help you save for a wedding, new home, college tuition, or any of life’s biggest milestones. TAX PLANNING Why pay Uncle Sam more than you’re required to pay? Slavic's goal is to limit your tax liabilities so you can retain more of your hard-earned money. A Wealth Management consultant will review your tax situation and refer you to tax professionals, if needed, for more robust tax planning assistance and strategy. INSURANCE AND PROTECTION It’s important to identify adverse factors that could negatively affect your life. One of the ways Slavic Wealth Management suggests to protect your assets is through various types of personal and financial insurance. RETIREMENT We help estimate your retirement expenses and income, then suggest a savings plan and financial strategy we believe will start you on the path to the retirement you dream of. ESTATE PLANNING Our financial advisors will provide you with a list of estate planning attorneys in your area to help you establish legal paperwork and directives, so your loved ones are taken care of after you pass, or in the event you become unable to take care of your own financial and medical affairs while alive. This is a vital aspect of retirement planning, yet one which some individuals may want to avoid – Slavic Wealth Management helps you get the ball rolling.

IRAs are accounts held by a financial institution that an individual can use to save money for retirement - by investing in things like stocks, bonds, and real estate property. These tax-deferred accounts come in different varieties such as: Traditional IRA, Roth IRA, Rollover IRA, and more. Traditional IRAs allow you to make pre-tax contributions up to the annual limit determined by the Internal Revenue Service (IRS). The contributions made into the account may be fully or partially deductible on a tax return, depending on factors such as annual income and filing status. With this account, the owner won’t pay income taxes until the funds are withdrawn. Similar in structure, a Roth IRA offers tax benefits for account owners. Because investments are taxed up-front, the account grows tax-free until the owner is ready to withdraw them in retirement. Because many IRAs and 401(k) plans have similar structures, there are some pros and cons for each that you should note to help you make the right financial decision.

A Pooled Employer Plan (PEP) is a 401(k) solution where many different companies—ranging from small businesses to larger entities—participate in a master plan, while still maintaining plan customization offering a tailored retirement strategy at the adopting employer level. There is no need to have a common “nexus” as there is in a Multiple Employer Plan (MEP), which broadens the scope for any participating employer.  The PEP approach not only fosters a community of financial security but also reduces the administrative burden, making it a valuable retirement planning vehicle for businesses of all sizes.

A standalone Single Employer Plan (SEP) is a traditional 401(k) plan adopted by one employer. While standalone plans are a great retirement savings plan option for many companies due to their customization and flexibility, they can sometimes be more costly and time consuming, depending on many factors that are at the employer’s discretion. SEPs typically work well with larger employers or employers who have a need for complex plan designs that allow different benefit structures for different groups of employees, or employers who have formally merged plans with protected benefits. Single Employer Plans offer businesses maximum flexibility for businesses with more complex needs.