401k Retirement

401k Plan: Always Caring for Your Team's Future

Offer a 401k Retirement Plan

Security is one of the main things that draws employees to large companies rather than small ones. Some good employees are drawn to the certainty that their job will still be there and will help them provide for themselves and their families in the future.

While you can’t give all the assurances that a large corporation can, you can provide your employees with some additional security in the form of a 401(k) retirement plan. This helps your employees plan for their future and gives them assets they can carry on, even if your paths diverge in the future.

Don’t let more talent escape your company just because you couldn’t offer them the benefits they want or need. Use PassioHR to give your employees a solid retirement plan that fits with our Elevated Engagement Plus® Approach to always taking care of your employees.

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What Is a 401(k) Plan?

401(k) retirement planA 401(k) plan is a type of retirement plan that people use to set aside money for the future. These plans come with significant tax benefits for those who contribute, although they also come with contribution limits.

401(k) plans come in two different types. The traditional 401(k) plan lets employees make pre-tax contributions to their plan. They get tax breaks now, but have to pay taxes on the money they withdraw. With a Roth 401(k), employees pay taxes on their contributions, but won’t have to pay taxes when they withdraw money from their plan.

In either case, people can’t withdraw money from their 401(k) plans until they reach a certain age (currently 59 ½) without substantial penalties.

We can help you decide which type or types of plans you want to offer.

Benefits of Offering a Retirement Plan with PassioHR

For many small employers, a 401(k) is simply not cost-effective. The administrative burden is too much for someone who is doing HR and payroll on the side. Plus, the financial responsibility can be difficult. Fees for small plans can be very high, and insurance requirements can tax the cash flow of a small business.

Running your 401(k) through PassioHR, though, is a lot more manageable for your company because of:

With these advantages, there’s nothing keeping you from offering 401(k) retirement packages to your employees.

Flexible Plan Options

With PassioHR, we offer 401(k) plans with our Elevated Engagement Plus® approach. This means taking the time to first listen to you and your employees to determine your needs and find a plan that really meets your company’s needs. We can offer both traditional and Roth plans. We can help you manage costs with a multiple employer plan (MEP) or help you develop a single-employer plan for your company. If it’s what’s best for your company, we can even help administer a third-party 401(k) through our payroll.

Controlling Costs

couple enjoying retirementIf the high cost is one of the barriers keeping you from offering a 401(k), we can reduce those for you. An MEP, or Multiple Employer Plan, saves you costs because it makes your employees part of a larger 401(k) plan, which reduces fees and then divides the lower fees among a larger number of contributors. In addition, it reduces the financial responsibility because we take responsibility for much of the plan’s insurance requirements as well as covering the 5500 reporting costs that you would normally have to pay with a traditional plan.

Convenient Offerings

Handling a 401(k) through PassioHR is incredibly easy. You just tell us to start it and we do. We do educational presentations to employees, encourage enrollment, and set up deductions if we’re running your payroll.

Solid Investment Choices

We know that you care about your employees and their money. You want to make sure that any investments in their 401(k) should be smart ones that help your employees reach their retirement goals. However, you just don’t have the time to do that research. We do, and we’ll make sure these investments are all good choices.

Compliance Testing

We do top-heavy testing to make sure the plan meets IRS requirements and avoids penalties. We also offer safe harbor 401(k) plans that are exempt from this requirement.

ADP and ACP tests ensure that plans benefit all employees, regardless of their salaries. We run these tests on our plans, too.

Offer Attractive Retirement Benefits

In a competitive marketplace, you don’t want to make it any harder to attract the key talent your company needs to not just survive, but thrive. Offering 401(k) retirement plans can make all the difference for employees who want to join your company, but also have to make sure they are providing for their future and their family’s future.

It’s easy to get started offering these retirement options. Contact PassioHR today, and we’ll get you started.