There are important benefits in providing your employees with a safe harbor 401k plan. This is mainly because a safe harbor 401k plan will provide your company with benefits that a traditional 401k plan will not. A safe harbor 401k plan is a low cost retirement plan that is perfect for small businesses. If a 401k plan is to qualify as a safe harbor 401k, the employer has to meet specific contribution requirements that ultimately benefit the employer and the employees equally.
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. To ensure that companies are meeting these standards, Top Heavy and the ADP/ACP testing are applied and if these standards are not met, the employer may end up paying additional fees. When you switch your company to a safe harbor 401k plan, however, you will actually avoid having to submit your 401k to these industry tests, which means that you will not be subject to possible fees as well. 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.
If you want to implement a safe harbor 401k plan, your employer contribution will have to fall within certain specific guidelines. 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.
The Path To Finding Better Resources
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. If you are looking for the best safe harbor 401k plans available the first thing that you should do is find a 3(38) investment management services provider to help you figure out which 401k plan options would be most advantageous to your company. 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.
Getting To The Point – Funds
For more information about the benefits of 3(38) investment managers all you have to do is take a moment to visit the official 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.