Successful business leaders want what’s best for their teams. Taking the time to select a quality 401(k) provider shows your team that you care about them and their futures.
Of the many factors that will influence which 401(k) provider you pick for your small business, here are some of the essentials.
- User-friendliness – Plan management should be straightforward for you and your employees. It should be easy to set up the plan, view details once it’s established, and make changes as needed. Consider how user-friendly a provider’s platform is to avoid challenges for you and your team.
- Expertise – Providers vary in experience with certain types of businesses. Look for providers that have worked with small businesses like yours and understand their needs, and check reviews to see if those businesses are happy customers.
- Employee support – Offering a 401(k) plan is key to helping your employees feel supported. Once you have a plan in place, it’s important that your employees have help managing it, too. Find a provider that makes accessible to answer employees’ questions and help them take care of their personal accounts. Providers may also offer educational resources to encourage employees to maximize their plans, such as informational guides, webinars, and more.
- Fees – All providers charge fees for their 401(k) services. Fees are paid by both business owners and employees, and they are usually associated with setting up and managing the plan, investments made through the plan, or optional services. Look for a provider that is transparent about the fees they charge and that provides valuable return for those fees.
- Services – Certain services make 401(k) management easier, and not all companies provide them (at least, not for free). Compare the unique services that providers offer and the additional fees they may charge for them. Some beneficial services you may want to consider are:
- Payroll integration – Connecting employees’ 401(k) to their payroll makes the contribution process much simpler for both business leaders and employees.
- Compliance – There are legal requirements for a business setting up a 401(k) plan. Some providers help their customers follow these requirements by monitoring for compliance and helping them fill out required annual compliance forms.
- Fiduciary responsibility – Businesses are responsible for making decisions that are in the best interest of their employees. 401(k) providers may take on some of these responsibilities by helping customers handle their business’s investments within their 401(k) plans.
Saving up for retirement doesn’t have to be a challenge for you and your team if you have the right people supporting you. Choose a provider that, above all, is dedicated to making retirement planning easy and secure for your small business.