A Quick History of Investments
There are important benefits in providing your employees with a safe harbor 401k plan. Safe harbor 401k plans offer businesses certain advantages that traditional 401k plans do not. Because they provide your company with a low cost retirement option, safe harbor 401k plans are best suited to small businesses. To meet the requirements for a safe harbor 401k plan, an employer must meet certain contribution guidelines.
401k retirement plans must meet industry standards or the employer who is offering them will face possible fees that can make it even more difficult for them to provide their employees with a viable retirement benefit. 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.
Safe harbor 401k plans have specific employer contribution requirements that must be met for the plan to qualify as a safe harbor 401k. 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 it may be a larger contribution than your current 401K plan, saving yourself from having to submit to industry testing would make it worth the expense.
5 Key Takeaways on the Road to Dominating Services
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. When you are looking for the best 401k plans available, the first step is to find a 3(38) investment management service to help you sort through all of your options. With the help of a 3(38) investment manager you can mitigate financial risk in your fiduciary planning which will be beneficial to your business as well as to your employees.
The Path To Finding Better Resources
To find out more about the benefits of working with a 3(38) investment manager the best thing you can do is take a moment to visit the website of a safe harbor 401k plan provider. To find out more about safe harbor 401k plans all you have to do is perform a search using your preferred search method for the best 401k plan providers or for a 3(38) investment management service in your area.