Information on 401(k) plans.
Purchasing Resources for 401(k) Plans
AllianzGI- Specializing in Corporate Retirement Planning.
Don'T Leave Your 401K Behind. Consider An IRA Rollover At USAA.
Start Investing For Your Retirement And Learn About Our No Fee IRAs.
Know Your 401(k) Rollover Options. Free Retirement Guide. Learn More!
Invest in Real Estate+More Tax Free No Custodian Fee- Free Consultation
Compare 401k Price Quotes and Save!
Download 401(k) Plans White Papers
401(k) Plans for Small Business
These defined contribution retirement plans aren't just for big corporationsBy Irwin Speizer, Freelance Writer One of the most powerful perks you can offer your employees is a pension plan, and one of the most popular types is the 401(k). Named after an IRS code section, the 401(k) allows your employees to fund their own retirement through pre-tax contributions. If you can afford it, you can provide matching contributions. Both you and your employees get a tax break for contributing. A good 401(k) plan can:
- Help you attract top talent.
- Allow employees a large measure of control over their retirement plans.
- Give employees the option of participating or not.
- Provide your employees a retirement plan at far less cost to you than a traditional pension.
Decide what type of 401(k) you will use
The cheapest is a plan in which you don't match your employees' contributions. If you choose to contribute, you need to decide how much and in what fashion. You can contribute a set percentage along with your employees. You can make your contribution a bonus paid annually. You can use the contribution as part of a profit-sharing program. Whatever method you choose, participation by your employees needs to be voluntary.
Try:
For an overview of plans, see the Business Owner's Toolkit discussion of 401(k) plans. Also review the 401(k) plan requirements. For a comparison of different types of small business retirement plans, check out Wells Fargo.
Get familiar with plan providers
Because 401(k) plans are complex, most companies hire a plan administrator to run their programs. Banks, brokerage houses and other financial services companies offer 401(k) plan services. But even the biggest banks typically use another outside vendor. You can buy directly from some of the same vendors. In addition, some offer more hands-on 401(k) software, usually at reduced costs.
Try:
One of the major providers of plans for business is ADP Retirement Services, which has partnering agreements with some of the nation's largest financial services firms, including Bank of America, Merrill Lynch and AIG SunAmerica. PAI offers a range of plans for small business. One company that offers self-run plans is 401(k) Easy.
Compare plan options and providers
When shopping for a plan, compare both prices and services. If you have only a few employees, you probably don't need an expensive plan with lots of options. You want to make sure the plan is both affordable and adequate for your needs. If you decide to use a self-run software plan, you should take it for a test drive to be sure you're comfortable running it.
Try:
Several companies list their services and fees online. BuyerZone provides links to a range of providers and plans. Both Wachovia and 401(k) Easy offer plan descriptions and prices on their Web sites. ShareBuilder offers online quotes for plans based on your number of employees and location.
Know what you're getting before you buy
There's lots of fine print in even the most basic 401(k) plan. Make sure you understand what you're getting and how much it will cost before you buy. Starting over can be a real headache.
Try:
Use this 401(k) Buyers Guide from BuyerZone to help you evaluate plans and offerings.
- Even do-it-yourself software plans should offer help lines and backup assistance in managing your plan.
- Watch out for hidden costs and fees, particularly investment transaction fees that can eat into your employees' savings.
- Ask other small business owners and your own accountants and lawyers for recommendations on 401(k) plans. Your best advice might come from someone you already know or work with.
- Don't forget about your own retirement. You can participate in your company 401(k). Even if you don't currently have employees, you can set up a 401(k) for yourself.
AllianzGI- Specializing in Corporate Retirement Planning.
Don'T Leave Your 401K Behind. Consider An IRA Rollover At USAA.
Start Investing For Your Retirement And Learn About Our No Fee IRAs.
Know Your 401(k) Rollover Options. Free Retirement Guide. Learn More!
Invest in Real Estate+More Tax Free No Custodian Fee- Free Consultation
Program for educating employees about retirement planning through their 401(k) plan. The program is designed to be used in conjunction with a companies existing 401(k) plan.
Provides 401(k) administration, record keeping and communication technology.
401(k) Default Investments for Participants Who Fail to Direct
Article by Fred Reish, Bruce Ashton, and Marge Paul.
http://www.reish.com/publications/article_detail.cfm
Directory of articles related to 401(k) fees and expenses.
http://www.reish.com/publications/results.cfm
401(k) Strategies: How to Reduce Refunds to Executives
Article by Fred Reish, Bruce Ashton, and Marge Paul.
http://www.reish.com/publications/article_detail.cfm
401(k) Testing: Improving the ADP and ACP Tests
Article by Fred Reish, Bruce Ashton, and Marge Paul.
http://www.reish.com/publications/article_detail.cfm
Frequently asked questions and answers from the AHI Employment Law Resource Center.
http://www.ahipubs.net/cgi-bin/print_page.pl
Online 401(k) plan information, applications and assistance.
A resource site for retirement plan sponsors and other retirement professionals.
http://www.401khelpcenter.com/
Online tool for estimating the future value of a 401(k) plan.
http://www.womenswire.com/bloomberg/401k.html
Web site providing market intelligence for 401(k) plan professionals.
Online 401(k) information and exchange service created for qualified 401(k) plan sponsors, retirement advisors and service providers.
ALI Actuarial & Retirement Plan Services
Plan design & administration services include 401(k), profit sharing and defined benefit pension plans.
Independent third party administrator of pension and profit sharing plans. Site offers questions and answers concerning 401 (k) and other defined contribution retirement plans.
Consulting firm that provides plan sponsors, trustees and plan administrators with information concerning different 401(k) vendors.
Integrated Financial Planning Center
Specialists in 401 (k), 403 (b), pension and tax sheltered annuities (TSA) rollovers, investments, retirement planning, tax planning risk management, and estate planning. Located in Austin, Texas.
Making the Most of Your 401(k) Plan
Article by Fred Reish and Bruce Ashton.
http://www.reish.com/publications/article_detail.cfm
401 (k) plan administrator located in Potomac Falls, Virginia.
Produces financial television and 401k video programs to help people make informed decisions about how to save and invest their money.
Technical support for pension plan administrators offering 401 (k), profits sharing, money and defined benefit plans.
http://www.nationalactuarial.com/
Personal Financial Education Company, The
Provides human resources consulting services, 401(k) plan administrator selection and investment advisory services and educational tools.
Provider of employee benefits consulting, health and disability insurance, professional employer organization (PEO), 401(k) and pension plans and group insurance.
A 401(k) service offered to certified public accountants (CPAs), banks, investment advisors, brokers, third party administrators (TPAs) and plan sponsors.
The Investment FAQ: 401(k) Retirement Plans
Article from The Investment FAQ discusses retirement plans, specifically 401(k).
http://www.invest-faq.com/articles/ret-plan-401k.html
The New 401(k) Plan Safe Harbor Design
Article by Fred Reish and Bruce Ashton.
http://www.reish.com/publications/article_detail.cfm
Consumer advocacy site with links to articles on 401(k) and other retirement plans.
Tips & Advice to help you make your decision on 401(k) Plans
401(k) plans are one of the most common ways that business help their workers to save for retirement. Although the Internal Revenue Service, or IRS, does put a limit on the amount that a person can deposit into their plan and the amount may change year to year, it can be one of the easiest ways for a person to save money. As a bonus 401(k) contributions are also often matched by an employer, however this is not a requirement, so you would have to do your research to find out which companies do this and which ones do not.
Both new and established businesses can consider getting a 401(k) plan for each of their employees, however it's important to keep some things in mind when you ... more
401(k) plans are one of the most common ways that business help their workers to save for retirement. Although the Internal Revenue Service, or IRS, does put a limit on the amount that a person can deposit into their plan and the amount may change year to year, it can be one of the easiest ways for a person to save money. As a bonus 401(k) contributions are also often matched by an employer, however this is not a requirement, so you would have to do your research to find out which companies do this and which ones do not.
Both new and established businesses can consider getting a 401(k) plan for each of their employees, however it's important to keep some things in mind when you plan on making this big decision. Make sure that you know the laws and any structuring requirements about the plans, educate your employees on the various options that are available to them and about how 401(k) retirement plans work in general, and decide whether or not your business will manage the plans and how it will do so. If you decide you do want to go through with offering 401(k) retirement plans to your employees, you can either choose to have a finance or payroll employee manage the accounts or you can hire some source of outside management to do so. To find out more about 401(k) plans and how they may work for your company, use the numerous helpful links available on business.com.
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