According to a 2014 study by Guardian Retirement Solutions, employees rank 401(k) plans among the most appreciated work-related benefits. A well-designed 401(k) plan can help your company attract employees and remain competitive in the industry.
But operating a 401(k) plan takes a lot of work. There are many elements to manage:
- Plan participation
- Nondiscrimination rules
- Investing of the 401(k) fund
- Disclosure of plan information to participants
- Reporting to government agencies and distribution of plan benefits
As a growing business, your time is better spent focused on strategies to increase sales or service to your clients, not managing employee benefits. This is where a financial professional can help.
Did you know that reviewing your plan provider is a part of your fiduciary responsibility? Someone who specializes in helping small to mid-sized businesses like yours manage their retirement plans can evaluate your plan and see if there are better options, such as enhanced benefits or lower fees. The goal is to provide you the best options based on your and your employees’ needs.
If you’d like to discuss your options with someone who specializes in this arena, give the office a call any time.
Distributions from traditional employer sponsored retirement plans are taxed as ordinary income and, if taken prior to reaching age 59½, may be subject to an additional 10% IRS tax penalty.