Options – Getting Started & Next Steps

What You Need to Know About Safe Harbor 401k Plans There are important benefits in providing your employees with a safe harbor 401k plan. This is basically because a safe harbor 401k plan will give your company a number of distinct benefits that you will not get from a traditional 401k plan. A safe harbor 401k plan is a low cost retirement plan that is perfect for small businesses. If a 401k plan is to qualify as a safe harbor 401k, the employer has to meet specific contribution requirements that ultimately benefit the employer and the employees equally. When your company offers a retirement benefit, your 401k plan will be tested to see if it meets industry requirements, which could incur fees if your plan does not meet these standards. Industry requirements test your company’s 401k plan through Top Heavy and ADP and ACP testing which may end up costing your company additional fees if your 401k plan is not up to industry standards. However, if you implement a safe harbor 401k plan in your small business you will not have to meet these testing criteria and will not be subject to testing. It is for this reason that so many small business owners are seeking 3(38) fiduciary managers who can help them implement a safe harbor 401k plan that will be good for their business. If you want to implement a safe harbor 401k plan, your employer contribution will have to fall within certain specific guidelines. The employer contribution for a safe harbor 401k is 100% of the first 3% of each participating employee’s contribution and then 50% of the next 3%. While this may appear to be more expensive than other 401k plans, the fact that you do not have to submit to testing is what makes it all worth it to small businesses.
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If you are looking for a cost effective way to meet the needs of your employees, it is a good idea to get in touch with a safe harbor 401k provider to learn more about implementing them in your company. The best 401k plan providers will have plenty of options including safe harbor and traditional 401k plans and 3 38 investment managers on hand to help you make a choice that will most benefit your business. 3(38) investment managers can help you reduce a significant amount of risk in your fiduciary planning which will benefit your company and your employees as well.
What Has Changed Recently With Investments?
To learn more about the advantages of hiring a 3(38) investment manager the first step is to find the website of a 401k plan provider in your area. The best way to get started is to perform a search engine search for 3(38) investment management services or safe harbor 401k plan providers.