We understand why you might be reluctant to put a retirement plan in place for your employees. Retirement plans can be expensive, difficult to administer, and a fiduciary risk if not managed properly. But for all the valid reasons you’ve hesitated, G&A Partners thinks there are just as many compelling reasons to institute a 401k plan for your employees. We promise we won’t bore you with all 401 reasons, but just consider these:
Business Owner Reasons for a 401k Retirement Plan
- A well-designed 401(k) plan can help attract and retain talented employees.
- It allows participants to decide how much to contribute to their accounts on a before-tax basis.
- Employers are entitled to a tax deduction for their contributions to employees’ accounts.
- A 401(k) plan can benefit both rank-and-file employees and owner/managers.
- Money contributed can grow through investments in stocks, mutual funds, money market funds, savings accounts, and other investment vehicles.
- Contributions and earnings generally are not taxed by the Federal or State governments until they are distributed.
- A 401(k) plan may allow participants to take their retirement benefits with them when they leave the company, easing administrative burdens.
If you’re still hesitant, we have a few more very good reasons to stop waiting and establish a 401(k) plan. The 401k Administrators at G&A Partners can identify and implement the best possible retirement plan for your company, including low cost, open architecture, and no-load plans. And what’s more, G&A Partners offers retirement plan administration, so you don’t have to take on the administrative headaches or assume any fiduciary risk. This just might be one occasion where being hesitant has paid off!
(Of course, if you already have a 401(k) plan in place, G&A Partners also has a couple hundred reasons why you might want to make a switch – as in saving you 200 to 300 basis points over your existing retirement plan.)
To learn more about 401k retirement plan services, call us at 800-253-8562 or fill out our contact form.