In the modern world, personal information is an increasingly valuable asset. It is a key target for cybercriminals and hackers, who can use this information to commit identity theft, fraud, and other cybercrimes.
With the rapid expansion of technology, most people now have access to computers in their workplaces. While these computers are essential for work-related tasks, it is important to avoid storing personal information on them. Here are some reasons why:
Security Risks: Work computers are usually connected to a network, and the security of this network is managed by the company’s IT department. However, this security is not always foolproof. Hackers and cybercriminals can exploit vulnerabilities in the network and gain access to the computers connected to it. If you have personal information stored on your work computer, it could be stolen and used against you.
Company Policies: Many companies prohibit employees from storing personal information on their work computers. These policies are designed to protect the company’s sensitive data and prevent employees from inadvertently compromising it.
Privacy Concerns: Even if your company allows you to store personal information on your work computer, consider the privacy implications of doing so. Other employees may have access to your computer, either physically or remotely. If it is not something you would be willing to share with your coworkers, don’t leave it on your computer.
Compliance Issues: Depending on your industry and the type of personal information you are storing, you may be subject to various compliance regulations. For example, if you are storing personal health information, you may be subject to HIPAA regulations. Violating these regulations can result in hefty fines and legal repercussions.
Professionalism: Finally, remember that your work computer is primarily a tool for work-related tasks. Using it to store personal information can give the impression that you are not taking your job seriously or are not focused on work-related tasks. Maintain a level of professionalism in the workplace. Storing personal information on your work computer can detract from that.
Avoid storing personal information on your work computer. Doing so can put you at risk for cybercrime, violate company policies, compromise your privacy, result in compliance issues, and detract from your professionalism in the workplace. If you need to store personal information, use a personal device and ensure that it is secure and protected.
Your 401(k) plan statement will look different in the near future. Why? A new regulation included in the SECURE Act, which was passed in December 2019, amended Section 105 of the Employee Retirement Income Security Act.
Jana Samek, Relationship Manager – Retirement ServicesLifetime Income Disclosure Regulation
Jana Samek, Retirement Services – Relationship Manager
The Internal Revenue Service (IRS) has set inflation-adjusted limits for IRAs and company-sponsored retirement plans for 2022. While some of the contribution limits have remained the same, other limits have changed.
The basic salary contribution limit for a 401(k) and similar company sponsored retirement plans went up to $20,500 for 2022. This is a $1,000 increase from last year. The catch-up contribution limit for those who are 50 years of age or better remained the same at $6,500.
Jana Samek, Relationship Manager – Retirement ServicesRetirement Plan Limits for 2022
Heartland Trust offers two of the most common types of employer-sponsored retirement plans: 401(k) and SIMPLEs. Both types of plans have many of the same features, but there are key differences that might make one a better fit for your business and employees. This article will cover the features of SIMPLE plans and next quarter we will take a closer look at 401(k) plans.
Shara Fischer, Relationship ManagerWhat is a SIMPLE IRA Plan?
By Jana Samek, Relationship Manager – Qualified Plans
Having access to a 401(k) plan through your workplace is a wonderful thing. Over half (56%) of US employers offer this employee benefit. If you have a 401(k) plan and face a financial emergency, there may be an option you are unaware of. You may be able to take a loan from your vested balance, depending on the provisions of your plan.
Keep in mind, the purpose of a 401(k) is to save for retirement. If you take money out of it now, you’ll risk not having enough money saved in retirement, especially if you don’t have any other savings put towards your retirement years. You may also incur stiff tax consequences and penalties for withdrawing before age 59½. Before taking a loan, the question you should ask yourself is will taking money from my 401(k) today jeopardize my financial security in the future?
Jana Samek, Relationship Manager – Retirement Services401(k) Loans: How Do They Work?
As many of our readers likely know, the Federal government provides strong incentives for saving for retirement and other financial goals. You can break these down into three broad categories: tax deductibility (on contributions), tax-free distributions (i.e. withdrawals), and tax deferral (on growth). Many physicians can increase their tax deductions and benefit from tax deferral by contributing to both a 401(k) plan and a 457(b) plan.
401(k) and 457(b) plans are both employer-sponsored retirement plans. The main difference is 457(b) plans can only be sponsored by certain entities, namely state and local governments, along with nonprofits such as hospitals, charities, and unions.
Dustin Sobolik - Investment OfficerPlanning for Physicians: Managing Contributions Between a 401(k), 457(b)
Every six years the Internal Revenue Service (IRS) requires certain qualified retirement plans to be fully amended and restated to comply with law changes. The Cycle 3 Defined Contribution (DC) Plan Restatement period began on August 1, 2020, and plan sponsors of defined contributions plans (401(k), profit-sharing, and money purchase pension plans) will have until July 31, 2022, to comply. Plans that do not restate their plan document by this date will be subject to IRS-imposed penalties, which, in extreme cases, could jeopardize the plan’s tax-qualified status.
So why is this important? Plan documents are the framework that an individual retirement plan must follow. They are drafted based on laws and regulations set forth by three federal regulators: Congress, the Treasury Department (IRS), and the Department of Labor (DOL). The IRS is the main overseer, and it has the ability to “pre-approve” plan documents.
Jana Samek, Relationship Manager – Retirement ServicesRetirement Plan Restatement
The Internal Revenue Service (IRS) has set inflation-adjusted limits for IRAs and company-sponsored retirement plans for 2021. While some of the contribution limits have remained the same, other limits important to determining the amount you can save have changed.
The basic salary contribution limit for a 401(k) and similar company-sponsored retirement plans remains the same at $19,500; and the catch-up contribution for those who are 50 years of age or better, also remained the same at $6,500. However, the overall annual additions limit for these types of plans goes up from $57,000 to $58,000 in 2021.
The table below provides additional information regarding the 2021 contribution limits for retirement accounts as well as prior limits for the past five years. It is for informational purposes only.
Jana Samek, Relationship Manager – Retirement ServicesRetirement Plan Limits for 2021
Here at Heartland Trust Company, we are proud of the great reputation we have built in the community over the last 30 years. We know that if we do business the right way, we will be here for a long time. Our mission statement says it all: “We provide a lifelong commitment to the well-being of those we serve.”
Our reputation is everything, and that is why we choose to adopt the fiduciary standard. This means we apply the industry’s highest financial, ethical, and legal standards to the services we provide for our clients. We always act in our client’s best interest, and we would not do it any other way. We do things our own way, and we do it to benefit our clients. And even though trust is our middle name, we do much more than that.
We started out as a trust company and we continue to provide these high levels of financial and ethical care that these special accounts require. We can serve as trustee, co-trustee, or agent for the trustee (usually for an individual named as trustee who would like assistance with responsibilities such as recordkeeping, asset management, and tax preparation). Types of trusts we administer include:
Revocable Living Trusts
Special Needs Trusts
Jan Nelson, Trust OfficerWhat Can Heartland Trust Company Do for You?
Businesses that sponsor 401(k) plans are required to run annual compliance tests to ensure that their plan meets the regulatory requirements to maintain their qualified status. In order to run these tests, your Third Party Administrator (TPA) will request certain information from you such as a complete census file. This file includes important information on each employee who received a paycheck from you during the year, regardless of whether or not they are eligible to participate in the plan. Your census information should be compiled and forwarded to your TPA within a month following your plan year-end to ensure that the proper tests are run and any necessary corrections to testing failures are completed timely.
Monica Millette, QKA® - VP, Manager -- Retirement Services.The Importance of Annual 401(k) Census Information