Welcome to Part 1 in our blog post series, “Starting a 401(k) Plan for Small Businesses”.
Throughout this 4-part series, we’ll share everything you need to know about setting up your business 401(k) plan, from debunking common misconceptions to choosing the 401(k) plan that’s best for you and your employees.
So without further ado, let’s jump in!
401(k) Plans for Small Businesses
According to SCORE.org, nearly 50% of employees consider retirement benefits a significant reason for staying committed to their jobs, such as a 401(k) plan.
Giving your employees this opportunity to invest toward their retirement is priceless, not to mention the business benefits that come along with it are pretty nice too.
4 Common 401(k) Misconceptions
- “401(k) plans are too expensive”
If you’re looking into a 401(k) plan and it’s too expensive, then you’re looking at the wrong providers. As one of the biggest myths that surround small business 401(k) plans, many small business owners mistakenly believe that they can’t afford to open a 401(k) for their business. With Saveday, employers don’t pay a dime for their plan.
- “I don’t have enough employees to establish a 401(k)”
There’s no minimum number of employees required to establish a 401(k). You can open one whether you have 5 or 500 employees. Self-employed? You can open a Solo 401(k). The best part is if your business grows, your 401(k) can grow with it.
- “Managing a 401(k) is time-consuming”
Running a business is time consuming – managing 401(k) doesn’t have to be. Luckily, with Saveday as your administrator, we handle all the heavy lifting for you, so you can focus on doing what you do best – running your business.
- “My employees won’t enroll in a 401(k)”
This couldn’t be further from the truth. In fact, 87% of job-seekers consider a 401(k) a must-have benefit. With the proper tools, such as auto-enrollment, you can enroll the majority of your employees into your plan in no time (and they’ll thank you for it).
That’s all for now! Remember to come back next week for part 2 of our series, where we cover what to look for when choosing a 401(k) provider.
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