HOW TO SET UP A 401k
Step 1 - Decide what type of plan you are looking for - Best Retirement plans for Small Business Owners
Step 2 - Get Plan Documents Drafted - (You'll need a TPA to do that for you - that's us!)
Step 3 - Choose your other providers - like the investment custodian (where the money will be held), and an investment advisor.
Step 3 - Sign Plan Documents
Step 4 - Get employees enrolled and start making contributions
Step 5 - Maintain the plan (we'll help you do that!)
If you've been paying attention, the retirement industry has been getting a lot of news time. Those over age 65 and those with disabilities receive some coverage under Social Security. The rest of us have to pay for our retirement ourselves. Sure there is still a small percentage of people who retire with a pension, but that percentage shrinks every year. Even government employees are facing the risk of shrinking or “restructured” retirement pensions.
The vast majority of Americans have an individual mandate to save for their own retirement. It’s not a law, but it’s common sense. If we don’t keep the private, employer-sponsored retirement plan system strong and vibrant we run the risk that employees will not have enough money to retire. If enough employees become a burden on the social safety nets we may run the risk that the U. S. Congress will decide that they have a better solution than our current system. As employers or business owners, it is important that we provide a savings vehicle for our employees, so they can take an active role in their retirement outcome.
Business owners – A variety of qualified retirement plans are available for business owners (see our blog on Best Retirement Plans for Small Business Owners for more details or view the infographic here):
If you're an employer who doesn’t have a plan available, it's easy to put one in place. It is up to each of us to save for our own retirement, but we as employers need to provide a vehicle for people to do that. Let’s join together to keep the private employer-sponsored retirement system strong and prove to Congress that we don’t need them to tell us how or what to do. The best part is, you don't even need to know how to set up a 401k, that's what we are for. We'll guide you every step of the way.
Give us a call to get started!
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7 common mistakes when setting up a plan
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