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Lower the Cost of providing your company retirement plan benefits.

| July 20, 2020
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If you are a business owner and have a 401(k) plan It may be worth considering if it is the best plan for your people and your business.

There are other ways to provide a valuable retirement savings benefit at significantly lower cost than the typical 401(k) arrangement.

An alternative: use a SIMPLE IRA plan

  • These plans require no 5500 form.
  • No administration expenses
  • Good for up to 100 participants.
  • 3% matching contribution rate
  • No need for safe harbor or other provisions
  • No fiduciary bond
  • No Fiduciary responsibility

With the money you save can add to your cash flow or be directed to help your employees in a more targeted way. Key people, health insurance, etc.

 

Ask your team these questions. It will help you determine if a SIMPLE IRA plan may be worth a closer look

  • Are costs an issue?
  • Is vesting an issue?
  • Are you concerned employees will deplete retirement savings prior to retirement?
  • Would we prefer to allocate benefit dollars and expenses to other more selective areas?

 

We can help you understand if this is the right thing for your people and organization. Give us a call 860-245-9525 for a no obligation assessment.

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