Your company will benefit greatly by 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. 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. By switching your business to a safe harbor 401k plan you can avoid this testing and the possible fees that you may be subject to as a result of not meeting the test criteria. For this reason, small businesses all over the country are switching to safe harbor 401k plans by getting in touch with 3(38) investment managers who help them find and implement the best 401k plans available for their specific company needs.
For your retirement plan to meet the requirements of a safe harbor 401k, your employer contribution will have to meet specific standards. This contribution is usually an employer contribution of 100% of the employee’s first 3% 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.
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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. 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. 3(38) investment managers can help you reduce a significant amount of risk in your fiduciary planning which will benefit your company and your employees as well.
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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.