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Set Up Your 401 k Retirement Plan for Your Employees to Win the Retirement Race!
By: Life, Inc.
Being a smart and responsible employer, and an expert in your own field, it is important to know that not all 401 k providers are experts. In fact, less than 25% of advisors work with more than five 401 k plans. So while it may be easy to blame your employees for not taking advantage of the great benefit your 401 k plan offers, you may also have to look at your advisor and see what they are doing to engage employees. Consulting a 401 k expert is your best option to not only improve plan compliance but to also have your plan start meeting your employees' needs and your company's goals. Many of these elite firms, like Life, Inc. Retirement Services, offer a hassle free and consultative approach to manage your business's 401k retirement plan. These firms also normally offer a local point of contact to manage your plan, use the latest technology for retirement plans, and are currently in the latest designs and trends for 401 k, 403(b), profit sharing, cash balance plans and much more. The point of contact will act both as a retirement plan administrator and retirement plan advisor, streamlining your company's communication for your plan and lowering costs for you and your employees.
The core mission of these 401 k specialty firms is to help your business and its employees prepare for retirement by changing the discussion from current account balances to participant outcomes, such as income replacement for employees in retirement. Changing the conversation for your employees may not seem like something substantial to employers, but putting things in terms your employees will understand has led some companies with less than 50% of employees contributing their company's 401 k plan to over 80% of employees contributing only a year later. If your plan is failing things like Average Deferral Percentage or Average Contribution Tests (ADP/ACP Tests), employee participation can be substantial since these kinds of increases can lead to more than doubling your Non-Highly Compensated Employees Percentage, resulting in increased contributions for owners and executives while eliminating the need for expensive Safe Harbor plans.
Most specialty 401 k advisors, like our firm, offer additional compliance services such as ERISA 3(21) or 3(38) Fiduciary investment selection and protection, customized investment policy statements (IPS), Education Policy development or programs, fiduciary support, participant education tailored to your company and of course, thorough documentation. While this may just sound like more work for your business or HR person, most of this work is done by your advisor and with over 66% of 401 k plans being audited by the Department of Labor annually facing some sort of fine, penalty or lawsuit, this additional documentation can keep your company on the right side these statistics.
As one of the most reliable and experienced 401k providers Columbus (http://www.lifeincrs.com/
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