Client in the News: Elliot Dinkin CEO of Cowden Associates, Proposes a fix for 401(k) Plans


Multi-Employer Retirement Plans Reduce Administrative Costs and Duties for Employers

JoTo PR Client, Cowden Associates, wrote a bylined article in Newsmax titled, ‘New’ 401(k) Could Be Savior of Small Businesses.

Forty years ago, Congress passed the Revenue Act of 1978 and added a single paragraph marked “(k)” to another wise yet obscure section of the Internal Revenue Code. The real purpose was to place more parameters around pretax contributions made to cash or deferred plans. With fewer than 900 words, Congress created what is now a major piece of the retirement system. In 1981, the IRS then sanctioned the use of employee salary reductions as a source of contributions. This created a large boom and by 1984, there were over 17,000 401(k) Plans.

Yet, 38 million private-sector employees in the United States do not have access to a retirement savings plan through their employers, according to the DOL, which cited administrative costs and compliance requirements as the chief reasons why small businesses don’t offer a retirement-savings benefit. The DOL is proposing a fix that would afford the opportunity for more employers to come together and share a single 401(k)-type plan, reducing costs and administrative duties that each employer would otherwise bear alone. This approach could help small businesses that are unable to provide employees with a retirement plan to start offering this benefit. Congress does continue to consider various legislative fixes that will do even more to ease the use of multiple-employer defined contribution retirement plans.

Cowden Associates, Inc., headquartered in Pittsburgh, PA, was created in 2001 by the merger of Halliwell and Associates and MMC&P Spectrum Benefits, which was founded by Jere Cowden in 1986. Currently led by President & CEO Elliot Dinkin, Cowden Associates specializes in helping corporate clients find the best solutions, both for the enterprise and for its employees, with regard to compensation, healthcare benefits, retirement and pension issues, and Taft-Hartley fund consulting. Winning Workplaces and The Wall Street Journal have recognized Cowden Associates as a “Top Small Workplace,” a lifetime designation awarded to executives for their ability to build and lead savvy organizations. For more information, visit http://www.cowdenassociates.com

NewsMax covers money, economy, markets, business and investment. Breaking news and analysis offer insight into the American Economic and Financial picture.

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