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/Virajith Wijeweera

About Virajith Wijeweera

This author Virajith Wijeweera has created 3 entries.

How Much Is Your 401(k) Account Costing You?

While an employer-sponsored retirement plan provides you a valuable benefit, not all retirement plans may be beneficial to you.  According to Deloitte’s 2019 Define Contribution Plan Survey, about 57% of retirement plans have plan fees deducted directly from the participant account either on a pro-rata or flat-dollar amount basis.  This means less money is working towards your retirement. Your employer, as a fiduciary for the plan, has the responsibility of finding the most cost-effective service providers for the plan.  Even with

Why It Does Not Make Sense to Pay 401(k) Plan Fees from Plan Assets

While it is convenient, it is not beneficial to pay 401(k) plan fees from plan assets.  When plan fees are deducted from plan assets, they are usually done on a pro rata basis – plan participants with the highest account balances pay the highest fees.  This could greatly affect your overall investment return over a longer investment horizon when you factor in compounded growth.  These fees could leave a six-figure dent in your retirement savings.  This is especially true if your 401(k) provider charges a high

Up to $16,500 in Tax Credits for Small Business Retirement Plans

Up to $16,500 in Tax Credits for Small Business Retirement Plans Passed in 2020, SECURE Act has been one of the most comprehensive updates to retirement plans in more than a decade, and one of the major benefits is the Small Business Tax Credits component of the act. Companies with up to 100 employees can claim a tax credit to offset startup costs associated with establishing a new 401(k) plan.  Companies can get a tax credit of up to $5,000 per year