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A General Overview of the Benefits of a 401k Plan for Small Business Safe harbor 401k plans provide businesses and their employees with significant benefits. This is mainly because a safe harbor 401k plan will provide your company with benefits that a traditional 401k plan will not. Because they provide your company with a low […]

A General Overview of the Benefits of a 401k Plan for Small Business Safe harbor 401k plans provide businesses and their employees with significant benefits. This is mainly because a safe harbor 401k plan will provide your company with benefits that a traditional 401k plan will not. Because they provide your company with a low cost retirement option, safe harbor 401k plans are best suited to small businesses. For a 401k plan to qualify as a safe harbor 401k plan, the employer must meet certain contribution requirements that end up benefitting both the employer and the employees. 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 standards are tested through the administering of specific tests of every company’s 401k plan, including the Top Heavy testing, ADP and ACP testing. 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. For your retirement plan to meet the requirements of a safe harbor 401k, your employer contribution will have to meet specific standards. 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%. Though this may be a larger contribution than other plans, not having to submit to ADP/ACP testing makes it worth it.
The Path To Finding Better Options
To find out more about how your company will benefit from a safe harbor 401k plan the first thing you should do is get in touch with a 401k plan provider in your local area. 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. 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 Options
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. All you have to do to get started is perform a search using your preferred search engine for the best 401k plan providers or for a 3(38) investment management services company.