Best 401k Plan for Small Business
Because service is an important consideration, since many small firms may need help introducing the 401(k) plan to employees and providing ongoing investment advice. In such instances, the small-scale financial professional such as Mintco Financial may be a better option than the giant fund company. That’s because the large firms are probably “not coming by the office” to speak to workers. “It’s more like, ‘Here’s a number to call a phone bank.’ “
Your company is at a serious disadvantage if it doesn’t offer a 401(k). Even if you’re a small, seven-person startup, you risk losing top talent if you don’t offer a 401(k) to your employees. You don’t have to match anything; rather, it is creating the system so that employees can contribute to their retirement. If you don’t offer it, employees are immediately suffering because they have to find another, less lucrative, alternative.
401k Fees for a Small Business
If you’re a small-business owner with, say, a couple dozen employees, you should probably budget for around $1,500 to $3,000 to get a 401(k) up and running.
In any case, you can expect administration fees, investment fees (which are deducted from the return from the investment) and maybe even individual service fees that each participant in the plan has to pay.
Setting Up a 401(k) for Small Business
There are multiple steps involved in setting up a 401(k) for your business, and you should consult with a financial professional before diving in. While the specific steps may differ depending on your plan needs, there are a few general first steps.
- Choose who will set up the plan. If you don’t want to set up the plan yourself, consult with an advisor, bank, mutual fund provider, or insurance company for assistance.
- Adopt a written plan. Every 401(k) plan requires a written document, approved by the IRS, that will serve as your go-to guide for plan operations. If you work with an advisor or financial institution, they may provide this for you. Regardless of who creates it, you must adhere to all terms of the document.
- Set up a trust to hold the plan’s assets. Your 401(k) trust must have one or more trustees who will manage the plan’s investments, contributions, and distributions.
- Choose a system for recordkeeping. It’s essential to track and attribute all of the plan’s earnings, losses, contributions, expenses, investments, and distributions. Choose a recordkeeping system that will help you prepare the requisite annual report that must be filed with the government.
- Give your employees the plan information. Provide guidelines on who is eligible and how they can participate. You are required by law to provide a summary plan description (SPD) so employees know how the plan operates.
Contact Mintco Financial and schedule a complimentary meeting to help you setting up a 401(k) for your business or if you need to review your existing 401k Plan.
Traditional 401(k) plans can offer limited investment selections, hidden fees, confusing pricing schedules, and limited fiduciary protection
To open a Best 401k Plan for Small Business you can contact Mintco Financial at 813-964-7100 or 716 565 1300 or email at info@mintcofinancial.com