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.
Retirement plans can be confusing. Between complex rules, industry jargon, and competing providers, it’s easy for employers to fall into patterns based on assumptions or half-truths. That’s why we created this series: to cut through the noise and help employers make confident, informed decisions. In this third installment, we’re addressing two persistent myths that often lead employers down the wrong path: the idea that payroll providers are the best place to get your plan, and the belief that robo-firms offer a hassle-free alternative. Spoiler: neither is as simple (nor as beneficial) as they seem.
Many companies, especially in the professional services sector—law firms, staffing agencies, engineering and consulting companies, healthcare groups, etc.—are often made up of various employee tiers. For example, in a given company, you might find partners or executives in one segment, professional staff in another, and support staff or hourly workers in yet another. While this tiered structure works well operationally, it can pose challenges relating to retirement plan compliance. In one recent example, the Primark Benefits team helped a client with over 3,500 employees overcome a complicated compliance issue by strategically changing the plan design, first expanding eligibility and then implementing automatic enrollment. Let’s take a look.
At Primark Benefits, we’re committed to helping employers and advisors navigate the complexities of retirement plans with clarity and confidence. This quarter, we’ve published a range of new articles designed to inform, debunk misconceptions, and highlight opportunities—especially those that can still make a difference for 2024. Next quarter, we'll be continuing our "Retirement Plan Myths Busting" Series and featuring a new case study showing how smart plan design solved a tricky compliance issue.