401(k) Plan & 403(b) Plans for Your Employees
While you have the option to set up a SIMPLE IRA for your employees as a small business owner, 401(k) plans have certain advantages. For example, the contribution limits for 401(k)s are much higher, which makes the retirement plan more meaningful to you and your employees. You’re not required to contribute to your employee’s retirement savings with a traditional 401(k), either, although it’s not a bad idea to consider matching their contributions.
403(b) plans offer similar advantages for nonprofit organizations. We can help you set up an employer-sponsored plan that meets your needs and helps your employees work toward their retirement goals. This includes making sure you’re meeting all legal requirements. We’ll even help you educate your employees about the retirement plan, how to enroll; and how to make contributions.
There are many benefits to setting up a retirement plan for your employees. The job market is very competitive. Prospective employees are more likely to work for and stay with your company if they can invest in their own retirement. With the right 401(k) plan, you can even offer stock reward options. Finally, having a small business retirement plan can provide tax benefits for your business.
Different retirement plans have unique rules. For example, some plans mandate employer contributions, while others don’t even allow employee contributions. You also have to consider the fees associated with the setup and administration of the plan, and you’ll want to use a retirement plan that integrates with your payroll system. We’re here to help you make the best choice for your situation.
The biggest differences between retirement plans are the contribution limits and the contributors. Generally, traditional 401(k)s and 403(b)s allow the highest contributions. Some plans only consist of employer contributions, and some plans only use employee contributions. Traditional plans use a combination of both, although employer contributions aren’t required.
There are a lot of options to weigh when considering a small business retirement plan. Working with our retirement planners can help you choose the right plan. It's also best to have a fiduciary for your plan to avoid carrying that liability yourself.
Our advisors are here to educate your employees and help them with enrollment and contributions. If you don’t have employees, we can help you prepare for your own retirement with a solo retirement plan.
Let’s Discuss Your Small Business Retirement Plan
If you’re ready to set up a retirement plan for your small business, we’re here to help. You can rely on our knowledge and expertise to help you choose the plan that has the features you’re looking for. Contact us today to start setting up your retirement plan for your company.