Q1 2025 Newsletter
April 10, 2025
As we wrap up the first quarter of 2025, the team at Primark Benefits has been hard at work for our clients, keeping their retirement plans in compliance.
At the same time, we've also been keeping you informed on the latest retirement plan developments, compliance updates, and strategic best practices. In case you missed any of our recent articles, here’s a quick recap of the topics we covered this quarter—from new SECURE 2.0 provisions to record retention strategies and ROTH account considerations.
Here's What You Need to Know
The ROTH Retirement Account, named for Senator William Roth, was introduced as part of the Taxpayer Relief Act of 1997. The main feature of a ROTH account is that contributions are made with post-tax dollars as opposed to pre-tax; this means that any withdrawals, including earnings on the investments, are tax-free in retirement. This advantage can be particularly attractive for those individuals who anticipate being in a higher tax bracket later in life. However, this needs to be weighed against the uncertainty about whether and for how long this tax status will be truly protected. Can you safely invest in a ROTH account and really expect tax-free withdrawals ten, twenty, or thirty years down the line?
How Long Do I Need to Keep All of This Paperwork? Today, we’re going to share our position on what may seem to be a black-and-white (if not also mundane) retirement plan-related topic - that of record retention. It’s one that we’ve been asked about hundreds of times, and understandably so: For one thing, it involves a lot of files, whether hard copy or electronic. Also, the requirements and guidelines from various government agencies can often seem to conflict. Most importantly, though, it has gotten plenty of well-meaning plan sponsors into some hot water, both financially and legally. There have been numerous instances when it turned out the guidelines weren’t enough to protect employers from costly legal disputes. Read on to find out more.
Primark Benefits is continually monitoring legislative updates. As such, we are sharing this reminder about the “super catch-up" contributions available under The SECURE 2.0 Act, in effect as of the start of 2025.
As we wrap up the second quarter of 2026, one trend continues to stand out: retirement plans are becoming increasingly specialized. Whether driven by changing regulations, unique workforce structures, or evolving business goals, employers are finding that a one-size-fits-all approach simply doesn't work. This quarter, we explored the unique retirement plan challenges facing several industries—including medical and dental practices, construction companies, architecture and design firms, wineries, and California employers navigating CalSavers requirements. We also continued our series on the hidden risks of low-quality retirement plan services, highlighting how operational complexity, fragmented accountability, and misaligned incentives can create costs that extend far beyond administrative fees. For employers still evaluating their retirement plan options, we also discussed opportunities that many business owners overlook, including the ability to establish retirement plans after filing a tax extension and potentially generate meaningful tax savings. Below is a recap of the articles we published this quarter. We hope they provide practical insights to help you reduce risk, improve plan performance, and make more informed retirement plan decisions.
When considering retirement plans, employers in the private sector are often focused on designing a compliant plan that meets the needs of their owners and employees. While that process for private sector entities can certainly be complex, nonprofit organizations face an entirely different set of considerations, related to funding, staffing, governance, and organizational structure, to name just a few. From seasonal employees and grant-funded positions, to creative executive retention strategies and legacy retirement programs, to smaller budgets serving a mission, there is so much behind the scenes that can affect a nonprofit organization’s ideal retirement plan. At Primark Benefits, we've worked with nonprofit organizations of all sizes throughout our history, from large institutions with hundreds of participants to small community organizations with fewer than 20 employees. In addition, many members of our management team serve on nonprofit boards across the country for organizations and causes near and dear to their hearts. All that combined experience has validated what makes a retirement plan most successful: understanding the organization itself.
The Mega Backdoor Roth strategy has become one of the most talked-about retirement planning techniques in recent years. Financial publications regularly highlight its potential to help participants contribute far more than the standard deferral limits allow. However, while the strategy can be extremely valuable, an important limitation is often overlooked: due to nondiscrimination testing requirements, some employer-sponsored retirement plans may prevent certain participants from taking full advantage of it. Before assuming a Mega Backdoor Roth will work in your plan, it is important to understand how the strategy operates—and where it can run into trouble.