Following recent guidance from the IRS, employers now have more clarity regarding the definition of "de minimis" financial incentives as mentioned in SECURE 2.0. The guidance explains that an employer is allowed to offer gift cards or other small financial incentives to boost employee participation in a retirement plan.
When looking to increase engagement, Elizabeth Camara notes the power of automatic enrollment, accelerated plan contributions and matching contributions. She advises plan sponsors to take "into account the workforce demographics and the affordable monetary allocation for employee gifts" when creating their program. Coupled with proper employee education, these strategies can help generate enthusiasm for the retirement plan.
"Helping employees see beyond their working years into retirement is key to them understanding the importance of saving now."
Interested in learning more? Check out the full article at FinanicalPlanning.
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