Small business owners benefit from the investment in a 401k. This type of retirement fund allows both the business owner and employees to plan for retirement throughout their working career. Overall, it is an affordable benefit to offer your employees, and as such, you are more likely to maintain top talent if you have a plan in place. The good news is that when you work with a 401k plan administrator, many of the “hard parts” of managing this type of retirement plan are no longer tasks you have to think about.
What Can Your Administrator Do for You?
The job of a 401k plan administrator is to help facilitate the plan for you, the business owner. Their job is customized to meet your needs. For example, they handle all of the administrative and consulting functions of the plan. This helps ensure your time is not invested in managing the investment details. They also handle creating a plan that fits your company’s specific needs. They do this through prototype plan documentation, plan design, and implementation. Once you decide to work with a company that provides this service, you do not have to think about the actual process of setting up and managing it. Over the lifetime of the plan, the administrator also handles IRS Fort 5500 Series reporting, annual reports, distributions, vesting, and allocations.
When you work with a quality 401k plan administrator, you also get the support you need. You have a professional that you can turn to for questions and someone to help give you advice on each of your options and concerns. Take a few minutes to consider how you can help your employees with a 401k. It could be exactly what you and they need to move the company forward.
