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Planning for Success: Optimizing Your Company's Retirement Plan in 2024

Planning for Success: Optimizing Your Company's Retirement Plan in 2024

January 04, 2024

As 2024 unfolds, it's crucial for businesses to evaluate and enhance their corporate retirement plans. This guide will walk you through essential steps to ensure your company's retirement plan is effective, compliant, and beneficial for your employees.

Assess Retirement Plan Performance

Begin the year by reviewing the performance of your retirement plan. Look at the investment options, participation rates, and the overall costs associated with the plan. It’s important to understand how well the plan is performing to identify areas for improvement.

Stay Ahead of Regulatory Changes

Retirement plan regulations are subject to change, so staying informed about the latest updates from the IRS and Department of Labor is essential. Ensure your plan complies with current regulations, including updated contribution limits and distribution rules.

Revamp Plan Design and Features

Reassess your retirement plan design to ensure it meets your company's and employees' current needs. Features like Roth options and loan provisions can significantly enhance the attractiveness and effectiveness of your plan.

Boost Employee Education and Engagement

Educating your employees about the benefits of the retirement plan is key to increasing participation. Consider conducting financial planning workshops and providing resources to help employees understand how to contribute and the importance of early retirement savings.

Examine Service Providers and Plan Fees

Evaluate the fees and services provided by your plan administrators and investment managers. Are the fees reasonable for the services provided? Renegotiating with current providers or switching to a new one can lead to better services and lower costs.

Diversify Investment Options

When optimizing your retirement plan's investment lineup, it's crucial to maintain a balanced approach. One key aspect is to carefully manage the presence of proprietary funds. While proprietary funds, which are investment options managed by the plan provider, can be a part of your portfolio, having too many can raise concerns about conflicts of interest and limit diversification.

Instead, aim for a well-rounded mix of active and passive funds. Active funds are managed by professional fund managers who aim to outperform the market, while passive funds, like index funds, aim to mirror the performance of a specific market index. This blend allows plan participants to choose based on their individual risk tolerances, investment goals, and preferences.

Implement Automatic Plan Features

Consider incorporating automatic enrollment and automatic escalation features. These can significantly increase plan participation and savings rates, as employees are automatically enrolled with the option to opt out.

Ensure Fiduciary Responsibility

Regularly review your plan to ensure it's managed in the best interests of the participants. This includes monitoring investment options, keeping fees reasonable, and adhering to the plan documents.

Focus on Tax Efficiency

Understand and communicate the tax implications of your retirement plan. Contributions to traditional plans are tax-deferred, while Roth contributions are made after-tax. Educating employees on these differences can help them make more informed investment choices.

Set Clear Goals for the Year

Set specific, measurable goals for your retirement plan in 2024. Whether it’s increasing participation rates, reducing costs, or improving investment performance, having clear objectives will guide your actions throughout the year.


A robust corporate retirement plan is beneficial for both employers and employees. By taking these steps, you can ensure that your company's plan remains effective, compliant, and tailored to meet the evolving needs of your business and workforce.

If you are interested in doing an audit of your plan to see how you can accomplish your company's retirement plan goals in 2024, schedule a time to talk with us here: SCHEDULE MEETING