Should your company start a retirement plan? After all, it is what profitable companies are often inclined to do. When deciding if this is an option that would benefit your company, there are several basic points to consider before offering a financial vehicle for your employees’ retirement.
Understand your employee demographics.
An employer with a young population and low retention rate may not be a viable option for a retirement plan. However, firms operating in a competitive marketplace often seek incentives for employee retention. A retirement plan can be a valuable benefit for employees, which means the firm spends less time and money on recruiting.
Costs associated with maintaining a plan.
Administrative fees for retirement plans vary depending on the sixe of the company, number of participants, fiduciary responsibility and plan administration. A well-informed provider can help you understand how much time the daily administration of your plan will require.
Easily accessible account management.
Many online tools exist which eliminate costly plan education and account management fees. Web-based plans help eliminate the need for paperwork and expedite many processes such as contributions and distributions. Employees can access their accounts online anytime, and many web-based platforms have retirement specialists on call seven days a week to support you and your participants.
What is the best retirement plan for my company?
Among the many types of retirement plans, traditional 401(k) plans and safe harbor plans are the most recommended. The traditional plan allows the employer to contribute a percentage of income or match the amount employees choose to save, subject to rules governing retirement plans. Safe harbor plans require mandatory employer contributions on behalf of the employees and are fully vested.
These are just a few of the basic points that may be helpful when deciding if a retirement plan is right for your company. Contact one of our Retirement Specialists for further discussion This step will not cost the company and may be the best decision your company makes.
To learn more about Retirement Plans, call Brandy Brocato at (318) 429-2113 or email firstname.lastname@example.org. For more information on the services available to you by Heard, McElroy & Vestal, LLC, call our Shreveport office at (318) 429-1525, our Monroe office at (318) 388-3108 or visit www.hmvcpa.com.