A 401k is a type of employer-sponsored retirement savings plan. It allows employees to invest part of their paychecks before taxes are taken out. Taxes are paid when they withdraw the money from the account.
Many employers offer matching programs as part of their employee benefits package. Some can even add a profit sharing contribution or provide stock benefits for added tax benefit. This is one of the most popular work perks or employee benefit that isn’t mandatory like workers compensation or minimum wage.
401k plans started replacing pension funds in the 1980s when the cost to run them rose. Most 401ks have a spread of mutual funds made up of stocks, bonds and money market investments. Employees can choose how their money is invested. The tax free investment allows for a larger return over the period of the account. However, this approach is primarily why so many 401k companies aren’t appealing to small businesses. Trusting your employees retirement with an aggressive 401k strategy in stock market investing would be out of the question for most folks.
What are the benefits of having a 401k program?
As a business owner, it is in your best interest to attract potential employees to your company. When it comes to recruiting and keeping great talent, a long term benefits package is one of the best employee retention decisions you can make. Many people look for jobs that include healthcare as part of the benefits package. However, more people are learning the importance of starting to save for retirement at a younger age. So, 401k plans are growing in popularity.
By offering a 401k employee benefit plan, you are making a statement as a business leader that you care about the future of your team. Help your staff get the most out of what you offer in your 401k plan. Tell them about details like investment options, how to make changes, and matching information. An employer match is a great way to stay competitive in human capital management. Contribution limits allow your business to estimate the costs of the program and account for the investment. When your business chooses to buy a 401k program, the retirement companies you consider can make the biggest impact.
How is our 401k different?
We listen to employers, our program hits the core benefits all business owners can enjoy. Here’s where we excel:
- MAKE MY PLAN EASIER TO ADMINISTER - We become your 401(k) department, performing 99% of the administrative tasks for your plan. This is the highest level in the industry.
- KEEP MY PLAN COMPLIANT - As your Plan Administrator, we keep you in compliance and prevent your 401(k) plan from becoming one of the 67.2% of 401(k) plans that fail Department of Labor audits in FY 2015. This keeps you from having to shoulder a share of the immense fines and penalties imposed for being out of compliance.
- PROTECT ME FROM FIDUCIARY LIABILITY - We are named Fiduciary on your plan, accepting fiduciary liability at the highest level in the industry.
- I WANT TO PAY REASONABLE COST - Our program is competitively priced – in a number of cases the 401k program costs less than programs offering none of the services offered by us.
- SUBSTANTIAL AND WELL KNOWN PROVIDERS - Our partner, TAG, is the largest “end to end” 401(k) provider in America. TAG partners with Transamerica as recordkeeper with over $152 billion in assets and Mercer LLC as the investment manager with over $100 billion in assets under management.
How to choose a company to start a 401k for your business?
Your first step when it comes to fiduciary services should always be to talk to an expert. Retirement planning is no joke and picking the wrong experts to manage it costs small business owners and corporate enterprises big every year. Depending on the size of your business or the depth of your ideal 401k plan, what you need could drastically change. Choosing a company who regularly deals with complex financial programs is a good start.
As an experienced full service financial services company, Alliance has the tools and experts to tailor a retirement package that will be perfect for your business. 401ks are the newest addition to our comprehensive lineup of financial products like risk management, insurance, as well as payroll and human capital management.
Spend more time growing your business instead of managing employee benefits
Our team of experts can help most growing businesses who are ready to develop a long term retirement benefits program. Our programs have been successful serving teams of all sizes from small groups of medical practitioners to larger scale construction operations. Our industry experience from serving all types of employers has been a cornerstone of our success from our consumer-focused approach.
Get Started Today!
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