3 Types of 401k Retirement Plans for Your Small Business

Finding and retaining great talent is difficult in today’s market. Many applicants may be looking for higher wages. Some might want greater flexibility, and most look towards the benefits offered when deciding to join a company. You may have excellent health, dental, and vision insurance but fail to get top talent because your organization lacks a sound retirement plan. Solving this dilemma is easier when you enlist the service of experienced 401k providers in Mississippi. We have the qualifications to aid you in establishing a quality retirement program that will ensure your applicants take a second look and pick you.

Types of 401k Plans to Choose When Setting up Yours

There are different actions you must take to set up your company’s 401k plan. You can set it up yourself or hire a professional. Additionally, you must write a plan document, arrange a trust for the assets, develop a recordkeeping system, and provide information to employees eligible to participate in it.

Part of adopting a written plan includes choosing the best 401k retirement plan option. Your provider can assist you with determining which one to choose, but here are the highlights to give you a basic understanding:

  1. Traditional: This type of plan offers your company much flexibility. As an employer, you can choose to contribute to all participants, match employees’ input, do both, or do neither. Generally, contributions are set up with a vesting schedule. Traditional plans are subject to annual IRS testing to ensure proportional benefits between employees and owners/managers.
  2. Safe Harbor: Some plans are not subject to annual contributions testing like traditional ones. Instead, employers guarantee a certain level of contributions, and the money deposited into an employee’s account is considered fully vested. These are known as safe harbor 401k plans.
  3. Automatic Enrollment: As the name indicates, you can automatically enroll employees into the 401k plan and place their payroll deductions in specific default investments. (Employees can choose different investment accounts.)

Setting up your 401k plan is only the beginning. Next, you will need to operate and manage it. This can become a little overwhelming if no one has the time to invest in handling the day-to-day tasks. Working with a 401k provider mitigates this so that you can focus on the operations of your organization.

Entice and Retain Talent with a Quality 401k Retirement Plan

Let all your employees, new and established, know you have their best interests in mind when you offer more than good wages. Work with the Executive Planning Group to set up and operate your company’s new 401k retirement plan. We have the experience you require to design and build solutions that provide your company and employees distinct value. Whether you are looking for retirement services, insurance, or other investment vehicles, consult us first. Contact us today, or feel free to request a quote online.

Call us at 601-982-3000 to begin your company’s 401k retirement plan in Mississippi.

Disclaimer: Securities offered through Valmark Securities, Inc. Member FINRASIPC. Investment advisory services offered through Valmark Advisers, Inc., an SEC-registered investment advisor. Executive Planning Group is a separate entity from Valmark Securities, Inc. and Valmark Advisers, Inc.

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