401 K Plan For Small Business
So, the all-important question: who are the best 401(k) providers for small business? We’ve done the legwork for you, assembling countless hours of research, reviews, and expert opinions into a simple, easy-to-digest guide. Click on these links to jump straight to a specific section.You’ll get side-by-side comparisons of 6 small business 401(k) providers that are frequently reviewed or mentioned by the media. Before we get into the 401(k) provider comparisons, it helps to understand: what makes a good small business 401(k) provider? We’ve broken this down below: Price is normally the first thing people consider when making a big purchase, and 401(k)s are no exception.Plan Design: this refers to the specific features, rules, and setup of your small business retirement plan. Some providers may have specific plan design limitations, which can lead to problems like poor employee participation, your business owners not being able to max out their contributions, or the plan costing your company more money than it should.So be sure to choose a provider that supports the plan design that’ll work for your business. Unfortunately, finding the answer is a lot harder than it should be.Evaluating 401(k) providers can be daunting for small businesses. There are hundreds of different providers, many with different roles in servicing a 401(k).
Compliance & Administration Tech Does the Heavy Lifting Between our automated compliance & administration software, and your dedicated account manager and 401(k) specialists, nearly all the work of running your 401(k) is taken off your plate.When we talk about flexibility for small business retirement plan providers, we mean two things: Investment Options: there are of mutual funds, index funds, and other investment products that can be added to 401(k) fund lineups, each with different pros, cons, fund expense ratios, and maintenance fees.While most employees will be fine with a simple lineup of low-cost index funds, it’s important that investment-savvy small business owners and employees have access to a wide-range of investment options, so they have options that can accomodate their desired portfolio goals.And traditionally, small business owners and their employees have gotten the short end of the stick. A new breed of small business 401(k) providers has emerged, using technology to offer easy-to-use, low-cost 401(k)s.According to a study by Bright Scope, the average small business pays 401(k) fees that are 5x higher than their Fortune 500 counterparts. Focused on the unique needs of the small business market, these 401(k) providers strive to make high-quality, low-cost retirement plans accessible to all – not just Fortune 500 companies.Information was gathered from provider websites & 3rd party sources as of May 2019.Providers’ offerings may be slightly different from what's denoted on their websites or as reported by 3rd parties and therefore on this chart.Full disclosure: with 16 mentions in the media and several reviews across the web, we (For Us All) are one of the 6 small business 401(k) providers in the list.We included information about our company and what makes our solution different, and for the other providers, we compiled their media mentions and user reviews from across the internet.So when choosing a 401(k) provider for your small business, you’ll want to go with one that takes all that complex, tedious administrative work off your plate.Better yet, they should act as both 3(16) and 3(38) fiduciaries – or, to put that in plain English, they should take for plan administration, AND building & optimizing your investment fund lineup.