Small business owners recognize that offering employees a 401(K) savings plan as part of their overall compensation package delivers several significant benefits. Previous generations of workers often planned for their futures using more predictable savings vehicles like traditional pensions. However, many of today’s employees don’t have pension plans. Instead, these workers rely heavily on 401(k) plans to supplement any social security income they may have once they leave the workforce, making them a highly coveted employer benefit.
As a result, smaller organizations offering retirement plans to staff can use these services as a major differentiator when sourcing top-tier talent. Of course, 401(k) plans are more than just a valuable recruiting and retention tool. Yes, offering a retirement savings strategy demonstrates an organization’s commitment to investing in its workforce, but a 401(k) plan also provides potential tax savings opportunities to business owners, which makes these savings vehicles a win/win for both employer and employee.
Leverage Automated Digital Solutions
The bad news? Traditional 401(k) programs were typically unattainable for startups and smaller organizations. Administrative burden and the threat of non-compliance penalties often made offering a plan to employees too risky and cost-prohibitive for smaller organizations. The good news? Retirement savings options have evolved significantly over the last several years, becoming far more attainable for small business owners who were deemed too small. Online, automated platforms leveraging state-of-the-art technology has redefined available options as part of their compensation plans. Knowing the basics of how these innovative and flexible digital solutions work can help you decide if it’s a good fit for your organization.
Even The Smallest Companies Can Access A 401(k) Plan
The first thing to know about automated retirement savings plans is all
small businesses can access and offer a 401(k) plan for staff members without exorbitant fees and heavy penalty risks. A dynamic online solution delivers far more flexibility than traditional products that have limited features and stock design options. These innovative, automated plans include a wide range of savings features, including Safe Harbor Plans, Roth and Traditional options, and other components that further customize the plan offered to employees. Business owners and HR leaders can curate their selections and are charged one flat monthly fee per employee for an affordable and convenient experience.
Online 401(k) Plans Deliver Several Significant Benefits
Beyond customization options, an online retirement savings model delivers multiple benefits to small business owners who don’t have the time or resources needed to coordinate a retirement savings program manually. A capable provider will offer an automated solution that eliminates the need to input employee and plan data by hand. Additionally, a digital 401(k) savings plan puts complete control into the hands of employees. Every user can log in to their specific page to monitor results and make changes as needed. Best of all, an automated 401(k) savings plan will fully connect with your existing payroll system for seamless integration that accelerates paycheck withdrawals accurately and compliantly.
401GO helps business owners, HR specialists, and financial advisors create customized 401(k) savings strategies for employees and clients. Contact us today for more information.