For a small business, offering a 401(k) is not only an employment benefit for employees, it is also a benefit for the employer! There are several reasons a 401(k) is such a key benefit for a small business to offer their employees:
- A 401(k) allows a small business to compete for talented employees against the big companies.
- A 401(k) offers the ability to defer income for tax purposes while saving for retirement.
- Finally, a 401(k) for small business means you can help your employees prepare for their retirement.
As your HR partner, we can help take care of the only downsides to this benefit: paperwork and regulations.
What the Experts Say
“As the average life expectancy continues to increase, more and more Americans are growing concerned about outliving their retirement savings. In fact, a poll conducted earlier this year by the American Institute of CPAs (AICPA) found that running out of money is the top retirement-related worry for U.S. adults, based on financial planners’ client interactions. The two biggest factors behind Americans’ concerns about outliving their money were found to be rising healthcare costs and stock market volatility.” Continue reading this article, “Retirement Is Becoming More Expensive,” written by Charles Couch on the Slavic 401k website.
We Make it Easy
As your HR partner, we take on the burden of fiduciary liability for your company and relieve you of the day-to-day administration associated with a 401(k) plan. We also make sure your plan remains compliant with ever-changing and ever-increasing DOL and IRS regulations. We can handle the record-keeping associated with maintaining a 401(k) benefit offering, too. Your employees also have the ability to choose between a traditional pre-tax 401(k) and a Roth after-tax 401(k).
Flexible Options for All
A 401(k) is attractive because you can defer more income into a 401(k) than an IRA. In addition, costs and employer contributions are tax-deductible. Whether you want to provide an employee match, profit-sharing, or safe harbor contribution, we give you the flexibility to tailor your plan design. We customize it to suit your company’s specific needs and goals. You save money, too, because we are able to offer large-group benefits at potentially lower costs than if your business were on its own. We negotiate better prices to get you the best bang for your buck.
Improve Talent Recruitment and Retention
If you want to hire and retain top-notch employees, consider offering a 401(k) plan. Larger companies offer inducement packages to talented recruits that contribute toward a retirement plan. With our help, your small business can compete with the big-company 401(k) plans. More and more people are becoming keenly aware of the need to save for retirement and your employees will appreciate the tax deferred benefit of a 401(k).
Start Your Retirement Savings Today
Contact us to get your plan in place or to learn more. Reap the benefits of attracting and retaining the best talent. Defer contributions to your own retirement. Plus, gain the intangible benefit of knowing you are providing yourself and your employees an opportunity to be financially stable in retirement!