How We Can Help Navigate the 401(K) Landscape For Your Firm 

The recent announcement of Ascensus acquiring Vanguard’s individual 401(k) retirement plan business has sparked questions among plan participants and small business owners on the future of the retirement plans. At Sherman Wealth, we understand the importance of ensuring that your retirement savings are in the best possible hands, which is why we want to discuss the prudency of revisiting your 401(K) plan, re-assessing the fees you are paying, your user interface and integration solutions, and assuring your plan matches your firm’s intended goals. 

Whether you’re currently enrolled in a Vanguard or other 401(K) plan or considering setting one up for your small business, we’re here to help. Our team can help you review your existing plan to identify any potential areas of improvement. From high administrative fees to open architecture investment options and working with the right 401(K) provider, we conduct a thorough analysis to ensure that your plan is optimized for your financial goals.

One of the key factors to consider when evaluating your 401(k) plan is the administrative fees involved. It’s important to carefully analyze these fees to ensure that you’re getting the most value out of your plan and there are no hidden or unknown fees that are unnoticed. Along the line of fees, you also want to ensure you are with the right retirement provider, exploring all the options available within the industry, and carefully selecting the best choice. Next, the user interface of your 401(k) plan plays a crucial role in encouraging employee participation and engagement. A review of your plan includes evaluating the usability and accessibility of the platform to ensure ease of use for your employees and firm in general. Additionally, it’s important to develop strategies or plans to boost employee participation and promote retirement savings awareness among your staff. 

An informed staff also plays an important role within a retirement plan. At Sherman Wealth, we work with many plan participants to provide education and training sessions to empower  employees to make more informed decisions about their retirement savings. From understanding investment options to maximizing employer matching contributions, we can help equip your staff with the knowledge they need surrounding overall retirement planning, answering any questions they may have specifically or generally. Lastly, even beyond the 401(K) plan, we work to support our clients with their overall small business planning needs, helping craft financial strategies to enhance the overall business. 

Within the ever changing retirement plan space, it’s important to periodically review your workplace 401(K) plan and ensure it still aligns with your firm’s needs and goals. Whether it’s setting up a new plan, reviewing your current one, or providing ongoing support and education, Sherman Wealth is here to help quarterback the process, guiding you throughout the way.  Email or schedule a complimentary 30-minute call here to learn more about how we can assist you in maximizing and reviewing your 401(k) potential.

Why A Roth IRA and 401(K) Are Smart Retirement Vehicles For You

While saving for retirement is a great way to build your financial wealth and pile away money for the future, many individuals are unclear on the best vehicles to use when saving for retirement. Furthermore, we have been reading articles and hearing remarks from individuals, especially those of younger generations, that they do not want to tuck away money now for retirement, funds that they can’t touch for many, many years. So, for those of you who resonate with this feeling, but still want to optimize your retirement savings, let’s explore why a Roth IRA might be the right savings vehicle for you.

So, for starters, let’s explore what a Roth IRA (individual retirement account) is. For those who don’t know, a Roth IRA is a retirement vehicle that allows individuals who fall under a certain AGI limit to contribute after-tax dollars to a retirement account, meaning you pay taxes on the money upon contribution so your future withdrawals are tax free. Some benefits of a Roth IRA are that your earnings can grow tax free, there are no mandatory withdrawals, unlike a Traditional IRA, and that withdrawals can be taken out tax-free and penalty free, given you’re age 59½ or older and you have met the minimum account holding period, which is 5 years.
Another benefit of a Roth IRA that many young savers find attractive and comforting is the fact that they you can always access the money you contributed without penalty, no matter your age, unlike a traditional IRA. Of course, any gains in the account may be subject to taxes and penalties is withdrawn before age 59½, unless you qualify for an exception. So, while we don’t recommend withdrawing from your account, for those worried about totally locking up their money until retirement, a Roth IRA provides piece of mind that you do have access to those funds in case of an emergency. In fact, studies show that many young individuals don’t end up withdrawing from their accounts, but feel comfort knowing that they can. So if you get weary about your retirement savings, a Roth IRA and its flexibility might be right for you.
While there are many benefits of contributing to a Roth IRA, if you or your combined household has too high of a AGI, you may not be able to contribute. However, if you still want to take advantage of the Roth option within part of your retirement picture, see if your workplace 401(K) has a Roth component. Unlike a Roth IRA, the Roth 401(K) has no income limit and follows the same contribution limit as the traditional 401(K). If you are a small business owner or self-employed, but make too much to contribute to a Roth IRA, consider setting up a 401(K) for your business and adding a Roth component. This is a great way to take advantage of the benefits a Roth account offers, and also save for retirement. If you are looking to implement a 401(K) for your small business or the Roth component to your existing retirement plan, email us at and we are happy to help!
Given all the market volatility and economic uncertainty we’ve seen over the last few years, having a good grasp on your financial picture is important. While saving for retirement is a key piece of your financial plan, its only one piece of many, which is why we encourage working with an advisor on a holistic financial plan to analyze the larger scope. If you have any questions about your particular financial situation or a Roth IRA, email us at or schedule a complimentary intro-call here.

The IRS Increased Retirement Contribution Limits for 2024

The IRS announced the new 2024 retirement contribution limits for 401(k) plans, IRAs and other accounts last year, which include increases. This is a great opportunity for retirement savers to increase their savings rate this year. So, let’s take a look.

The employee contribution limit for 401(k)s will be increasing this year by $500, to $23,000, up from $22,500 in 2023, and catch-up contributions for those age 50 and older will remain unchanged at $7,500, so $30,500. These new limits apply to 403(b) plans as well and some TSP and 457 plans. Solo 401(k)s limit for 2024 is $69,000 and $76,500 for those over 50 years old.

The IRS also increased contribution limits for IRAs, increasing the limit for savers to $7,000 in 2024, up from $6,500 in 2023 for traditional and Roth savers. Catch-up contributions will remain unchanged at $1,000, so $8,000 for those over 50 years old. Simple IRA contribution limit will be $16,000.

Another feature to take a look at is the income phaseout range for Roth IRAs in 2024. The IRS increased the adjusted gross income phaseout range rising to between $146,000 and $161,000 for single individuals and heads of households, up from between $138,000 and $153,000 in 2023, leaving more opportunity for individuals to qualify for a Roth IRA. For those married filing jointly, the phaseout range is between $230,000 – $240,000.

If you have any further questions on the retirement contribution limits for this year, adjusting your contribution, or jus on your personal financial situation, email or schedule a complimentary intro call here. Check out the IRS website for more information on the contribution limits.

Are You HSA Eligible? If So, Check This Out

Are You HSA eligible? If so, here’s how to take advantage of it during this time of year. While open enrollment season is still here, now is a great time to review and analyze all the options available to you, including an HSA (health savings plan).  Many individuals have questions about what benefits they are eligible for, and what those benefits truly mean. Retirement savings and medical coverage are typically a large part of your workplace benefits, which is why it’s so important to take advantage of what’s available to you, such as an HSA.

So, what are HSA’s? An HSA is a tax-advantaged health savings account that allows you to save money specifically to pay medical and health care expenses. If you get your insurance coverage through high-deductible health plans, you can qualify for an HSA. Your contributions within the account will grow on a tax-free basis, and any untouched dollars can be rolled over year to year. One of the key benefits of an HSA is the triple tax advantage it offers: contributions are tax-deductible, earnings are tax-free, and withdrawals for qualified medical expenses are also tax-free. By using untaxed dollars in a Health Savings Account to pay for deductibles, copayments, coinsurance, and some other expenses, you may be able to lower your overall health care costs. This flexibility and tax advantage make HSAs a valuable tool for individuals seeking to manage healthcare costs and build long-term financial security

Due to inflation, the IRS increased the contribution limits for HSAs in 2024.  So, next year individuals with a HDHP will have a HSA contribution limit of $4,150, up from $3,850 this year. The HSA contribution limit for family coverage will be $8,300 up from $7,750 this year. This is a 7% increase over what you can contribute this year for 2023. These adjustments are quite large, so be sure to take advantage if you are eligible to do so!

Be sure to contribute by the end-of-the-year December 31st deadline, so that you can make the most of your yearly contribution. Keep in mind that HSAs are just one of the many benefits that you can take advantage of. Check out our open-enrollment blog to see what else you may have been eligible for and our retirement contribution limits blog to see the increases in retirement contribution limits ! For other end of the year tips, check out our financial checklist blog here. If you have any questions about funding your various accounts, email us at or schedule a complimentary 30-minute consultation here

Do You Want to Save More For Retirement This Year? Open Enrollment Is Near So Here’s How

Now that we are in the last quarter of the year and approaching open enrollment season, we want to talk about an important topic that is oftentimes overlooked or misunderstood, retirement savings. If you were looking to increase your retirement savings last year, there is an opportunity for you in 2023. As we mentioned in a prior blog, the IRS increased retirement contribution limits for 2023, up $2000 from last year, from $20,500 to $22,500 and to $30,000 for individuals 50 years of age and older. So, another $2,000 you can save this year! We’ve found that many individuals who maxed out their 401(K) last year still have not raised their contribution to max out for this year. If you received a raise in salary from last year and want to save more for retirement, you will need to adjust your contribution as well! 

Whether you are taking advantage of the entire contribution limit or just want to increase your contribution by a percent or two, this is a great opportunity to save more before the end of the year. If you have yet to increase your retirement contribution, work with a financial advisor or financial professional to calculate the amount you will need to increase in order to reach your retirement goal for the year.

So, let’s take a look at how individuals saved last year for their retirement. According to 2022 estimates from Vanguard, “in 2021, roughly 14% of investors maxed out employee deferrals”, based on 1,700 plans and nearly 5 million participants. We find that many individuals actually intended to max out their retirement contributions or save more than they did, but either forgot to adjust their contributions or were clouded with other goals. So, if you plan on saving more this year, log on to your 401(k) platform and make your appropriate adjustments.

Contributing to your workplace retirement plan and taking advantage of the company match is a great way to build your wealth and save for your future. When deciding how much you want to contribute to your retirement plan each payroll period, it’s important to think about your entire financial picture and your goals. Make sure you are being intentional about your saving, and accounting for all the goals you want to achieve and save for. Find a balance that works for you so you can save for both your short and long-term goals. No matter where you start with your retirement contribution, you can always change it throughout the year on your retirement platform if you feel necessary. If you have extra room in the budget from the first half of the year, now might be a great time to adjust your contributions! 

While retirement is only one piece of your financial puzzle, we want to make sure you are taking advantages of the benefits it provides to you for your future. There is no clear or right answer when it comes to your retirement and goals, which is why we suggest working with a financial professional to prioritize your goals. As we approach open enrollment season, use this opportunity to review your benefits guide and familiarize yourself with all the benefits available to you so you can maximize your particular financial life. If you have any questions about adjusting your retirement contributions or about your 401(K) in general, please email us at and we are happy to help answer all and any questions. You can also schedule a 30-minute complimentary consultation here

It’s Time To Repay Covid-19 Retirement Withdrawals to Reap Tax Benefits

If you or anyone you know withdrew funds from retirement accounts during the early stages of the COVID-19 pandemic, it’s important to be aware of a time-sensitive deadline to pay back those amounts and unlock significant tax advantages. In March 2020, Congress passed the CARES Act, which allowed individuals to withdraw up to $100,000 from their retirement accounts, such as IRAs and 401(k) plans. These withdrawals, known as coronavirus-related distributions (CRDs), were intended to act as loans and provide financial support during the economic hardship caused by the pandemic. However, to fully benefit from the tax advantages, individuals must act quickly to repay the withdrawn funds within a specific timeframe, which is ending soon.

Under the CARES Act, individuals who took CRDs were granted several tax advantages. Firstly, the usual 10% penalty for early retirement withdrawals was waived. While income tax was still owed on CRDs, those who repaid some or all of the distribution had the opportunity to recover the paid taxes and convert the withdrawals into tax-free loans. These tax benefits were only available in 2020, making it crucial for individuals to take prompt action to maximize their savings. Those who withdrew funds had three year to repay the CRDs, starting from the day after they received the funds. So, for many people, the deadline is quickly approaching if they want to be eligible for the tax refund.

Recent data from Vanguard Group reveals that a significant number of individuals took CRDs in 2020. In fact, “approximately 6% of investors in workplace retirement plans, totaling around 268,000 people out of 4.7 million”, withdrew these funds. However, according to Vanguard’s latest data, “less than 1% of those who withdrew funds had repaid them by the end of 2021.” For those who want to capture tax benefits or re-invest those funds back into their retirement accounts, now is the time to pay it back. Those who repay part or all of their CRDs within the three-year deadline must file an amended tax return to claim a tax refund.

Given the approaching deadline and the potential for significant tax advantages, it is crucial for individuals who have taken CRDs to take prompt action. Assess your financial situation and determine if you can repay the withdrawn funds partially or in full. Seek guidance from a financial advisor or tax professional who can assist you in the repayment process and help you make informed decisions based on your specific circumstances. If you have any questions, email

What To Do With Your Old 401(k)

Have you been laid off before, recently left a job, or just starting a new one? If so, keep reading. We’ve been getting tons of questions about what to do with old retirement accounts. This is a great question that is oftentimes not discussed, causing many people to “forget” or lose track track of their old accounts. Many people often make rushed decisions and think they need to pack up their savings when they leave a job.  And conversely, some people pay no attention when they move from job to job and leave a trail of 401(k) plans behind them.  With any employment change, it’s important to know which mistakes to avoid when it comes to your 401(k).

Here are some tips regarding your 401(k). First and foremost, pause before simply cashing out on your 401(k) when leaving a job. Cashing out and not reinvesting your funds in a qualified retirement plan is a mistake.  People don’t realize the cost to their financial security by cashing out on their 401(k) and that cost includes an immediate tax hit – income taxes plus another 10% early withdrawal penalty if you are younger than 59 ½.

One thing to be weary of is not to roll over your accounts too many times. Employees who decide to move their money to another 401(k) plan or an IRA typically have two options—transfer the funds directly to another account, or do a rollover. Although “rollover” is when you move money from one retirement account to another. That money is best moved by direct transfer, but some employers will send a check. You have 60 days to roll that money over to an IRA or other qualified plan. If you miss that window, there is a grace period (with a penalty fee), but this is offered only once every 12 months, so direct transfers are often best to avoid penalties and issues. 

There are plenty of good reasons to move your money into an IRA (individual retirement account).  These accounts aren’t linked to any one employer and consolidate your money into a single retirement account. You also are not confined to that employers or old 401(k)s fund lineup, so may have more flexibility moving over to an IRA.  However, your employer’s plan may offer you access to investment options, tools and institutional pricing that you might not get with an IRA so it’s important to analyze that beforehand. 

Next, make sure not to overlook other tax strategies. There may be other strategies to consider when weighing a job move, although most people associate 401(k) plans with pretax contribution. One option may be to convert the savings to a Roth IRA; you’ll owe income taxes on what you convert, but future growth and withdrawals will be tax free. If your income is lower that year, the tax impact will be less.  For those who’ve accumulated their employer’s stock in their 401(k) plans, leaving a job may open the door for an often overlooked tax break. 

As we get ready to kick off summer plans, use this opportunity to evaluate and understand what old accounts you have if any and your options to consolidate them. Keeping regular tabs on what is going on with your investments is critical to ensuring they line up with your goals for the future.  For more specific advice on what to do with your old retirement accounts, email,

How The Secure 2.0 Act Might Impact You!

Happy New Year everyone, we hope you had a wonderful holiday season and wish you a healthy, happy, and prosperous New Year. Before the start of 2023, on December 29th, Congress passed the Secure 2.0 Act that was promised to provide changes to help many Americans’ retirement plans, including over 90 updated retirement plan provisions.

The provisions are set to encourage more employers to create retirement plans and automatically enroll employees to stimulate retirement savings growth, change the age individuals must take RMDs, make it easier to take cash out of retirement and more. We wanted to share a few of the updates that may have an impact on your financial plan and will report back with additional information and changes: 

“Mandatory Retirement Auto-Enrollment 

Required Minimum Distribution (RMD) 

Effective on January 1, 2023, the RMD age has been raised for some individuals based on the following criteria:

  • Born in 1950 or earlier: RMD begins at age 72
  • Born between 1951-1959: RMD begins at age 73
  • Born in 1960 or later: RMD begins at age 75 

Roth 401(k) RMD

Beginning in 2024, RMDs are no longer required from Roth 401(k) accounts. RMDs are still required from Roth 401(k) accounts in 2023. 

Qualified Charitable Distribution (QCD) Indexed for Inflation

Beginning in 2024, the maximum annual QCD of $100,000 will be adjusted for inflation. 

401(k) / SIMPLE IRA Catch-Up Contributions

Starting in 2025, some individuals can increase their employer-sponsored retirement plan catch-up contributions.

  • 401(k): Individuals whose age is 60-63 in 2025 and later will see their catch-up contribution limit increased to a greater of $10,000 or 150% of the regular catch-up contribution amount. RightCapital will default to $10,000 at this time.
  • SIMPLE IRA: Individuals whose age is 60-63 in 2025 and later will see their catch-up contribution limit increased to a greater of $5,000 or 150% of the regular catch-up contribution amount. RightCapital will default to $5,000 at this time.”

While these are only just a few of the many changes made in the Secure 2.0 Act, we know that these updates and information may be overwhelming, which is why it is important to defer to a trusted source such as your financial advisor to ensure you are understanding all and any changes. As we embark on 2023, it is a great time to get organized and review your budget and overall financial plan for the year to come. If you have any questions for us on the Secure Act 2.0 or your personal financial situation, email or schedule a complimentary intro call here. 

Are You Taking Advantage Of Your 401(k) Employer Match?

Does your job offer workplace benefits? If so, are you aware of the benefits available to you and are you taking advantage of them all? We’ve been working with many individuals who are not only unaware of the extent of their benefits but are also not utilizing some great opportunities for them, especially their 401(k) employer match. Let’s take a look at why individuals are not taking advantage of this benefit and why it’s prudent to.

We’ve found that many employees are not educated on their benefits and therefore do not know how some of these added comps can benefit them. If your employer offers a 401(k) match, they are basically offering you free money. So, why wouldn’t you take it? Even if you are not able to/or want to max out your 401(k), contributing at least the employer match will help you make the most out of your retirement savings and take advantage of a really great company perk. Let’s break down how it works. Say your employer match is 4%. So, if you contribute 4% (or more) of your salary towards your retirement account, each pay period your employer will also contribute 4% on your behalf. 

Keep in mind, if you are starting a new job,  it’s important to speak with your employer or HR to determine when you are eligible to contribute to your company retirement plan and if the employer match is immediate or there is a waiting period. Additionally, many people are unaware that in 2022 they can contribute up to $20,500 of pretax income to a 401(k), so there’s a real opportunity to save throughout the year and getting closer to the limit quicker. 

Another issue we have seen as it relates to workplace benefits and retirement accounts is misplacing or forgetting about old 401(k)s. We know starting a new job can be a stressful time with many moving parts; however, it’s important that you don’t forget about your old 401(K) account. When switching jobs, you have a few options. First, you can roll the old retirement plan into your new 401(k). Other options are to leave the retirement plan where it is, roll it into an individual retirement account (IRA), or cash it out (however, depending on your age early withdrawal fees may apply). Oftentimes, it’s very helpful to analyze your old 401(K) and new workplace benefits to see which option is best for you. If you have questions about an old 401(K) or retirement account and would like our help analyzing your options, please let us know. Additionally, If you are an employer and are looking for a workplace benefit education course, email us at as we are happy to work with your employees to educate them on all the options available to them. Click here to schedule a complimentary intro call. 


Here Are The 401(k) Contribution Limits for 2023

The IRS released annual inflation adjustments to income tax brackets and many other adjustments for 2023 on Tuesday which are followed by today’s announcement of the 401(k) contribution limits for 2023.

The contribution limit for retirement accounts such as 401(k)s, 403(b)s, most 457 plans and TSP accounts has increased to $22,500, up from $20,500, the largest increase for retirement savings contributions in history. The contribution limit to an individual retirement account (IRA) increased to $6,500 for 2023, up from $6,000. The 401(k) catch-up contribution if you are 50 or older will rise $1,000 to $7,500 for 2023. The catch-up contribution limit for individual retirement accounts remains at $1,000.

For self-employed individuals who have individual 401(k)s or SEP retirement plans, the contribution limit for 2023 is $66,000, up $5,000 from this year, including employee and employer contributions. Those allowed catch-up contributions can contribute up to $73,500 in 2023. 
If you have any questions about the tax brackets or retirement contribution limits for 2023 and how that may impact you and your financial picture, head to the IRS website for more information or email us at or schedule some time to connect here.