When you are a small business owner, it can be difficult to find a 401k plan for your employees that will also work within your budget. Providing small business employees with competitive benefits has been almost impossible for small business owners for many years now. For this reason, 3(38) fiduciary companies are now offering a variety of 401k plans, including safe harbor 401k plans that are incredibly beneficial to their business as well as their employees.
For most small businesses, a safe harbor 401k plan would be the best solution for the problem of providing small business employees with an affordable 401k benefit. For the employer, one of the advantages of a safe harbor 401k plan is the fact that they are not subject to Top Heavy and ADP/ACP testing. Many small businesses find that it is easier to manage a safe harbor 401k plan simply because of this fact.
When a small business has employees who are approaching retirement age, a safe harbor 401k is probably the best option for them. This is because safe harbor 401k plans allow employees to contribute as much as they want to their retirement. Their employer is then required to match their contribution at 100% for the first 3% of their earnings and then 50% for the next 3%.
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You may be wondering how the employer ends up benefitting from providing their employees with a quality 401k plan? First and foremost, a benefit like a safe harbor 401k plan will actually reduce turnover in your business by supplying your staff with extra encouragement to stay until the reach retirement age. Many small companies have had a lot of trouble keeping employees because they have not been able to compete in the area of providing benefits for their staff like larger firms always could. By implementing a safe harbor 401k plan for your company, you will be able to offer a retirement benefit that can compete with those being offered by larger firms.
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Those who are interested in learning more about great 401k plans for small businesses should take a moment to get in touch with a 3(38) fiduciary manager in their local area. When you take a moment to visit the website of a 3(38) investment management service, you will be able to find out everything that you need to know about safe harbor 401k plans and other forms of fiduciary management services. The best way to begin is to perform a search using your favorite search engine for the best 401k plans available for small business or a 3(38) fiduciary manager in your local area.