401(k) Plans Industry Overview
Get a 401(k) plans industry overview to help structure your company's retirement planThe 401k plan grew from a little known tax code loophole--which is where the 401k name came from--to the most common way workers invest for their retirement. This industry possesses trillions of dollars in allocated 401k retirement plan contributions. A company that understands the overall ramifications of the 401k plan and its industry, on its employees, will find itself ahead the retirement investment curve.
Not only has the 401(k) retirement plans industry grown, but it's also become more complicated. With the different 401k plans available to a company, it's important understand your options. This new complicated industry can create advantages with retirement plan flexibility. To navigate through the industry, there are few items to consider, such as:
1. Keep up with any new government regulations regarding the 401(k) retirement plan.
2. Contact the industry leaders in 401k plan administration.
3. Employ an independent auditor to review your company's 401k retirement plans.
Monitor all regulatory changes for the 401(k) plans closely to ensure your overview is current
Evaluate the 401(k) administrators' optionsThe leading providers of 401k plan administration offer a barometer of the industry as a whole. The services and rates that each company offers will vary, but the basic plan structure is the same at most every company.
Review the different types of plans to get a clear 401(k) plans industry overviewThe plans available within the industry include the Solo, Safe Harbor and Roth 401(k) plans. The Solo plan is for self-employed individuals. A safe Harbor plan is a 401k plan designed for small business operators. The Roth 401(k) plan is more advantageous to younger workers in your company.
- Any 401(k) plans effectiveness begins with employee education. While you may think that the plan works fine, your employees may tell a different story. Without employee buy-in, there isn't any plan, no matter how effective, that will work.
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