If you're considering offering an employer-sponsored retirement plan, a 401(k) is a popular option for small business and large corporations alike. In 2020 there were about 600,000 401(k) retirement plans with over 60 million active participants.1 Offering a retirement plan can be an effective tool in attracting talent and keeping employee satisfaction high. If you’re considering offering a retirement plan like a 401(k), you may want some professional guidance from a financial advisor. Here’s what you need to know about the role a financial advisor plays when it comes to building and maintaining a 401(k) plan.
An Advisor Can Help...
Identify & Align Your Business’s Goals and Needs
Each business is different, and it's likely that you and your employees may have unique goals and needs. So how do you choose a 401(k) plan that aligns with those goals and needs? An experienced advisor can go over what you want to achieve and help you choose the right plan.
Compare 401(k) Providers for Cost and Value
Overwhelmed by the various options when it comes to 401(k) providers? A financial advisor can provide a breakdown of costs and discuss the value of various providers to help you find a good fit.
Stay Up-to-Date on Legislative Changes
As government policy changes, retirement plan rules can be affected. While you’re busy running your business, your financial advisor will let you know when changes are made to retirement plan rules that could affect your plan or responsibilities as a sponsor.
Educate Participants & Encourage Participation
It’s not just about creating the 401(k) plan, you want your employees to participate as well. By holding information sessions for your employees, an advisor can answer their questions, encourage participation and review the benefits.
Evaluate and Monitor Investments
A financial advisor can guide you when it comes to making informed decisions about your business, your retirement plan and its investments. He or she will have a monitoring process with periodic check-ins to help keep you up-to-date.
Offer Administrative Support
The administrative duties involved with maintaining an employer-sponsored retirement plan can be daunting for small business owners. If you find yourself with limited time and resources to put towards these administrative duties, an advisor can help.
An advisor can guide you, support your needs as a plan sponsor and help align your plan with your business’s needs. If you feel that you need help in any of the areas mentioned above, you may benefit from the additional expertise a financial advisor provides.
A 401(k) plan offers benefits that will help you not only attract but keep good employees at your company. Hiring a financial advisor to help establish and maintain a retirement plan can put you at ease and confirm that you’re checking all the boxes.
This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
This information was developed by Twenty Over Ten, an independent third party. The opinions of Twenty Over Ten are independent from and not necessarily those of RJFS or Raymond James. The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Expressions of opinion are as of this date and are subject to change without notice. Prior to making any investment decision, you should consult with your financial advisor about your individual situation.
401(k) plans are long-term retirement savings vehicles. Withdrawal of pre-tax contributions and/or earnings will be subject to ordinary income tax and, if taken prior to age 59 1/2, may be subject to a 10% federal tax penalty.