Employees care about their futures and retirement. A lot. So much so, in fact, that an employer’s retirement benefits package ranks second in importance after healthcare packages, according to the findings from a 2016 Strategic Benefits survey conducted by Society for Human Resource Management (SHRM).
Employers of all sizes believe that offering a retirement plan is an important factor in attracting and retaining top talent; with that figure growing as the size of the company grows. 69 percent of small business owners agree it’s very important to stay competitive in this arena, according to an August 2017 report created from survey results conducted by the TransAmerica Center for Retirement Studies. Consequently, a strong retirement package is important for employers, as it aids maintaining a strong employee pool.
But how do you go about setting up a 401(k) plan, isn’t it complicated?
“First, don’t worry, you’re bringing a huge benefit to your employees, and that piece outweighs the time and cost needed to set up a plan by a long shot.” Ashlee Faulkner of Journey Employer Solutions, reassures.
“Journey helps businesses by integrating their 401(k) in a variety of different ways. Where Journey stands out from the rest, is our care and relationships with outside advisers to best service the client. Unlike others in our industry where a client is sold the 401(k) platform owned by the payroll company, Journey works with multiple different providers. Journey has the financial advisors drive this conversation, because let’s face it, they’re the experts. When Journey partners with financial advisors, we are able to bring in the best Third Party Administrator (TPA) (www.PAI.com or www.DRS401k.com are two examples) for each clients’ needs. Along with better service, clients normally save 10-60% when comparing these TPA’s with a big box payroll companies’ 401(k) platform. The key is to have the financial advisor drive the conversation with the client. There’s no selling of a 401(k) platform driven by this payroll company. Clients are always first in our eyes.”
So now that you’ve decided to set up a 401(k) plan for your employees, what’s next?
Choose a trusted financial advisor or ask your local Journey payroll contact for an introduction to one. You can set up a 401(k) plan without going to a professional, however, having a trusted advisor is crucial to ensure you are set up the best way possible. Journey Employer Solutions works with fantastic financial advisors and would love to connect you to an adviser if you’re thinking of setting up a 401(k), or if you would like to consult with an adviser over other financial matters (personal finances, key-person life insurance, etc.).
You will need to get a written plan in place, set up an account, and file Form 5500 (Annual Return/Report of Employee Benefit Plan). With this in mind, the right financial advisor can assist with set up, guide you through the maze of 401(k), and so much more.
Journey Employer Solutions can help make this part of running your business headache free. Just give us a call and we’ll partner you with a professional that will make setting up and maintaining your 401(k) plan easy and painless. Your employees will thank you.