Eligibility, Entry Dates, and Compensation Definitions: A Mid Year Check for Business Owners
For business owners sponsoring a 401(k) plan, three core concepts shape how the plan works every day: who is eligible, when employees enter the plan, and what counts as compensation for contributions and testing.
Checking Contribution Timing: Are Employee Deferrals Being Deposited Promptly?
When employees choose to defer part of their pay into your 401(k) plan, they’re trusting that those dollars move from payroll into the plan quickly and consistently.
Is Your 401(k) Plan Document Aligned With How You Operate the Plan?
For a business owner sponsoring a 401(k) plan, the written plan document is the foundation of everything: it describes who can participate, how contributions work, when money can be taken out, and more. To keep the plan tax‑qualified, it must be both written correctly and operated in accordance with its written document.
Using the IRS 401(k) Checklist as a Mid Year Self Audit Tool
A 401(k) plan is a valuable benefit for your team, but it also comes with ongoing responsibilities for you as a business owner and plan sponsor. Mid year is a practical time to pause and run a structured self-check on the plan, while there’s still time in the calendar year to correct issues and refine processes.
Managing Taxes on Social Security and 401(k) Income Together
Managing Social Security and 401(k) income can feel overwhelming, but the main challenge is tracking one key number: your combined (or provisional) income.
Tax Considerations When Drawing From 401(k)s in Retirement.
At Duncan Williams Asset Management, we know traditional 401(k) withdrawals in retirement are generally taxed as ordinary income. When and how you draw from these accounts can significantly affect both your lifetime tax bill and the net income you actually spend.
Reassessing Your “Retirement Paycheck” Annually
At Duncan Williams Asset Management, we understand that life rarely stays the same, especially in retirement. That’s why we encourage you to take a fresh look at your “retirement paycheck” every year—particularly if your 401(k) is a main source of income.
The Power of Timing: How the Sequence of Your 401(k) Withdrawals Shapes the Course of Retirement
Traditional 401(k) withdrawals, with the inevitability of tides, are taxed as ordinary income in retirement. Yet behind these seemingly routine transactions lies a terrain shaped by the unseen hand of federal policy and personal decision—a landscape in which the timing and method of withdrawal can, quietly but profoundly, alter the course of a retiree’s financial life, determining not only the taxes owed but the very contours of security in one’s later years.
How Age and Retirement Proximity Affect Bond Allocation Decisions
As retirement nears, 401(k) participants must prioritize bond allocation decisions. Early in a career, growth may take precedence, but as retirement approaches, it is essential to focus on volatility, income needs, liquidity, and the risk of needing to sell investments during market declines.
Coordinating 401(k) Withdrawals With Social Security and Pensions
Retirement income usually comes from more than one source. Most retirees receive Social Security, some have pensions, and many rely on 401(k)s, IRAs, taxable investments, or cash savings. The challenge is to bring all these sources together, so you have a clearer, more personal view of your monthly income, taxes, flexibility, and financial risks.
Turning 401(k) Balances Into Monthly Income Streams
For many people, building up a 401(k) happens gradually, paycheck by paycheck. But once you retire, the real question shifts: how do you turn all those years of savings into a steady monthly income you can count on, while also staying on top of taxes, market ups and downs, living longer than expected, inflation, and the curveballs life can throw?
Considering Behavioral Factors in Debt vs. Saving Decisions
Financial decisions are more than calculations. The decision to use extra cash for debt, emergency savings, or retirement involves factors like interest rates, returns, and math—but a sharper reality is that math alone is not the full answer.