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The 401(k) plan is now the premier retirement savings vehicle in the U.S. This growth is directly attributable to a shift away from traditional pension plans, where employers alone are responsible for providing retirement benefits to their employees, to 401(k) and other defined contribution plans, where participants share in the responsibility for saving and investing for their retirement.
401(k) plans can be a powerful tool to promote saving for retirement. They are a valuable option for businesses considering a retirement plan, providing benefits to employees and to those employers sponsoring plans. Employers establish 401(k) plans for a variety of reasons:
- A well designed 401(k) plan can help attract and retain talented employees
- It allows participants to decide how much to contribute to their accounts on a before tax basis
- Employers receive a tax deduction for their contributions to employees’ accounts
- Contributions and earnings generally are not taxed until they are distributed at retirement
- 401(k) plans can be designed to provide contributions favoring the business owners and their key employees
Historically, small businesses have encountered a number of negatives to sponsoring a 401(k) plan, including:
- High administrative costs
- Plan designs that do not provide significant enough contribution levels for the business owners
- Plan designs that do not favor the key employees
- Lack of flexibility in investment options
- Lack of state of the art administrative services
- No one to turn to for guidance on these issues
A customized plan design that provides meaningful benefits to the business owner(s) is essential to the ongoing success of a small business 401(k) plan. Our plan provider can provide a plan design that favors the key employees of the business by utilizing various design options, including:
- Traditional allocations
- Allocations integrated at the social security wage base
- Tiered and multi-tiered new-comparability (cross-tested) formulas
- Our favorite plan provider’s exclusive allocation method
Our 401(k) plan package specifically designed to target the issues that most concern the small business owner. Small business owners are adopting our 401(k) plan solution for a variety of reasons, including:
- Custom plan design on an individual case basis
- Plans that favor the owner(s) and the key employees of the business
- Complete documentation for establishing the plan
- Total ongoing service for the life of the plan, provided by our own pension administration department
- All government reports provided
- Quarterly participant statements
- Extremely low administration fees
- Large variety of investment options
- State of the art daily valuation system offering 24/7/365 internet access to account
- Internet access to all aspects of the plan for the employer
- Free and flexible investment transfers
- No surrender charges for death, disability, retirement, participant loan or termination distributions
- Low expense charges
Want a FREE look at a new plan for your business? Or a FREE review of your existing plan to see if we can increase your tax advantages and/or reduce your costs?
Call today (800) 680-5596 or send us an
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Pension Plans 
