How to Start a 401(k) Plan for Your Business
Learn how you can start a 401(k) plan at your business that is affordable and benefits the company. With so much at stake for your business and employees’ retirement security, it’s important to get your company 401(k) plan right. Already have a 401(k) plan for your company? Learn More
A well-designed 401(k) can:
Attract & Keep Top Talent
Reduce Your Business Taxes
Boost Employee Retirement Savings
Help You Save More for Your Own Retirement
Easily Pass Annual Compliance Testing
Why have a 401(k) plan?
401(k) plans are one of the best benefits you can offer your employees—and they’re a staple if you want to be successful in recruiting and retaining top talent.
With the decreased use of pensions and the limitations of Social Security, many working people have to partially or completely fund their own retirement savings. You can help your employees better prepare for their financial future by offering a 401(k) plan with features that meets their needs.
But, not all 401(k) plans or service are the same. Over 81% of workers would agree that, all else being equal, the retirement benefits offered by a company would have a major impact on their decision to take a new position.1
1 Source: 19th Annual Transamerica Center for Retirement Survey
How to start a 401(k) plan for small business
Specifically created to serve small to mid-sized business 401(k) plans, Fisher Investments 401(k) Solutions will customize a solution that is right for you, your business, and your employees.
Together, we will help you understand and set up appropriate plan features, pair you up with the right recordkeeping partners (or you can keep your own), and optimize your 401(k) plan. Starting a 401(k) plan doesn't have to be hard. Just look at some of the ways Fisher Investments 401(k) Solutions takes on the heavy lifting:
- Reduce your administrative tasks
- Reduce your legal liability
- Better educate and prepare your employees for retirement
- Help you be prepared for regulatory audits
- Have transparent and simple fees
- All of which ultimately help you stay focused on your business
We'll help you set up your 401(k) plan to maximize employee participation and engagement
There are a lot of decisions to make when setting up your 401(k) for the first time. From deciding who you're going to work with and if they have the level of 401(k) experience you need, to whether or not you'll offer an employer match, the decisions can quickly get complicated.
We specialize in small business 401(k) plan service, and unlike payroll providers or some financial advisors, we are focused on your 401(k) plan. From set up to enrollment day and year one, two and more, we're here to make your day-to-day 401(k) tasks easier and to help you and your employees get retirement ready.
401(k) Contributions: You can set up your 401(k) plan so that the employee, the employer or both can contribute to an employee’s 401(k) account on a pre-tax basis—meaning before taxes are paid out. Employers can choose to provide contributions to their employees or to match their employees’ contributions, or not contribute at all. Employee contributions into a 401(k) account are made through paycheck deductions. Generally, employees can contribute up to $19,500 per year and up to $57,000 with combined employer contributions for 2020.
Participation: Managers and owners as well as employees can participate in a 401(k) plan. And you can encourage participation with your 401(k) service provider through in-person education, online tools and goal-setting discussions. We commonly see a 55% increase in participation rates after a plan switches to Fisher 401(k) Solutions.*
* Fisher 401(k) Solutions enrollment data as of 1/1/2019.
Investments: The money contributed to a 401(k) is invested in stocks, bonds, mutual funds, money market funds, and other investment vehicles and grows tax-deferred, increasing the likelihood of beating inflation. When you set up your company’s 401(k) plan, you’ll work with your 401(k) service provider to set up the fund lineup. We help our clients with this important part of the process so that everyone has the opportunity to invest appropriately for their retirement goals.