IRS: Rehiring retirees won’t jeopardize your retirement plan

Good news: Your company can rehire retirees without worrying that will compromise compliance for your retirement plan.

So says IRS in a new FAQ it recently posted on its website.

And that’s the case even if those people have started receiving payouts from your plan because they’re 59 1/2 or your plan’s retirement age.

Also important to note: As long as your plan permits it, you can continue paying out those retirement plan benefits to those people even when they’re back on your payroll.

The strategy is a sound one. The Great Resignation has made it tougher than ever to fill vacant positions.

Rehiring retirees gives you employees already familar with your company, likely parted on good terms and not requiring a costly and time-consuming ramp up.

How far your peers will go to recruit now

Whether rehiring retirees is the strategy you tap or you’ll go a more traditional route, be prepared to be extra generous if you want to compete with your peers on the hiring front during the remainder of this year.

Many companies say they’ll pull out all the stops to attract the best of the best, according to a recent survey by Robert Half:

• 48% are providing signing bonuses
• 43% are giving more paid time off, while
• 40% are offering better job titles.

Be extra aware of how quickly the hiring process moves. Senior managers said it can take up to seven weeks, on average, to fill an empty spot.