Getting back to basics, we decided to look at the essential considerations a sponsor should consider when creating a 401k plan or other retirement plan for your company. The parent company of 401kTV is The Plan Sponsor University (TPSU), which focuses on educating plan sponsors at every level of experience. TPSU has thousands of active students and alumni around the U.S. We have brought together some of their best practices here.
There are currently around 52 million American workers enrolled in a 401(k) plan. Total assets from those plans amount to approximately $3.5 Trillion. These numbers are expected to grow as uncertainty about social security increase and as younger workers who are more conscious about retirement security enter the 401(k) marketplace. Not to mention, companies offering a strong retirement plan have a greater competitive advantage when recruiting key employees.
Employee recruitment is one of the many benefits of offering a solid retirement plan. But employee retention can result in big savings and increased productivity by keeping employee turn-over to a minimum. Reducing turnover can often have a profound impact on a company’s bottom line.
In addition to retaining a seasoned and dedicated staff, starting a 401(k) plan can have favorable tax benefits for smaller companies too. Small tax credits are available for companies with under 100 employees.
Once you have established your company 401(k) plan, it is wise to be sure to keep engaged with employees and senior management. Even though a 401(k) plan is designed to have employees fund their own retirement (most times with a small company match), the company can derive meaningful benefits by ensuring the plan stays healthy and competitive. The results are proven to add significantly to the bottom line.
401kTV will explore these topics in a Master Class webinar on Wednesday, April 27 at 4:00 pm ET. Registration is free, but seating is limited to 500 attendees.
