Celebrating Success: Sharing Your 401(k) Plan’s Wins

1. Measuring Success: Key Metrics to Review

Before celebrating, it’s important to identify what “success” looks like for your plan. Here are a few key metrics to evaluate:

• Participation rate: How many eligible employees are actively participating? A high participation rate signals strong employee engagement and confidence in the plan.
• Contribution levels: Are employees contributing enough to maximize any matching contributions? Increasing average deferral rates is a clear indicator of growing financial awareness.
• Plan enhancements: Did you introduce new features, like Roth contributions or automatic enrollment, this year? These enhancements demonstrate your commitment to improving the plan for employees.

By gathering data on these metrics, you can highlight areas where your plan excelled and set benchmarks for 2025.

2. Recognizing Employee Engagement

A 401(k) plan thrives when employees actively participate. Highlighting employee achievements can motivate continued engagement and demonstrate the plan’s value.

• Celebrate milestones: Share anonymized stories, such as employees who reached significant savings goals or fully utilized matching contributions.
• Acknowledge progress: Highlight company-wide achievements, such as increased participation rates or total contributions made by employees.
• Share feedback: Collect employee testimonials about their experience with the plan. Positive feedback reinforces the impact of your 401(k) offering.

Recognizing employees’ efforts builds a culture of financial wellness and inspires others to engage with the plan.

3. Showcasing Employer Contributions

Your contributions—whether through matching or profit-sharing—are a cornerstone of the plan’s success. Use this opportunity to highlight your company’s role in supporting employee retirement readiness:

• Quantify the impact: Share how much the company contributed to employees’ accounts this year. This demonstrates your investment in their future.
• Reinforce the benefits: Explain how employer contributions, combined with employee deferrals, can significantly accelerate retirement savings.
• Align with company values: Position your contributions as part of your broader commitment to employee well-being.

By emphasizing the employer’s role, you strengthen employees’ appreciation of the benefit and build trust in your organization’s leadership.

4. Planning for a 401(k) Celebration

Celebrating your plan’s successes can be as simple or elaborate as you like. The goal is to foster excitement and engagement among employees.

• Host a financial wellness event: Use the opportunity to provide education or tools to help employees maximize their savings.
• Share an infographic: Create a visual representation of the year’s achievements, such as total contributions or participation growth.
• Send a thank-you note: Acknowledge employees’ participation and encourage them to set new savings goals for 2025.

These actions show appreciation while inspiring employees to continue building their retirement savings.

5. Looking Ahead to 2025

Celebrating success is also a time to look forward. Use the momentum from 2024 to set new goals for your 401(k) plan, such as:

• Increasing participation rates or average deferrals.
• Adding or enhancing plan features, such as Roth options or automatic escalation.
• Expanding financial wellness initiatives to better support employees’ overall financial health.

By focusing on these priorities, you can build a plan that aligns with both employee needs and organizational goals in 2025.

Call to Action: Let’s Make 2025 a Banner Year

At Foundation Wealth & Tax Advisors, we specialize in helping plan sponsors optimize their 401(k) plans to deliver measurable results. Whether you’re celebrating a great year or looking for ways to improve, our team can provide expert guidance tailored to your unique goals.

Ready to review your plan’s performance or explore enhancements for 2025? Contact us today to schedule a consultation. Together, we’ll ensure your 401(k) plan remains a cornerstone of your benefits strategy and a vital resource for your workforce.

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