For some time the conventional wisdom has been that adopting 401k plans is too expensive and too cumbersome for the smaller business scale. Chief among the more onerous requirements had been the nondiscrimination compliance testing for contribution and compensation limits.
Retirement Services & Financial Advisors - Serving Columbus & Beyond
For business owners, there’s no shortage of retirement plan options, each with the capacity to accept larger contributions than individual or employee plans with commensurate tax advantages. Until recently, the default options for many business owners had been the Simplified Employee Pension (SEP IRA) or the Savings Incentive Match Plan for Employees (SIMPLE IRA) chosen in large part for their low cost and simplicity. However, for business owners in the right situation, the 401k plan is quickly becoming the plan of choice for its even greater capacity and flexibility.
Generally, anytime an employee or contractor is hired to a position that handles any aspect of a company’s finances – from cashiers to CFOs – are required to be bonded by their employer. In such cases bonds are purchased as protection against fraud, theft, or other instances of dishonesty that result in financial loss to the company.
Employer-sponsors are beginning to realize that it’s not our parents’ 401k plan anymore. Long gone are the days of simply setting it and forgetting it. Increased regulatory oversight of 401k plans by the Department of Labor has led to raising the bar in sponsor fiduciary responsibilities along with the penalties for falling short.
Proactive vs. Reactive, it's two words that once you hear them you immediately realize you want to be proactive.
Thank You for Visiting Life, Inc. Retirement Services website,
First, I wanted to thank everyone for the warm reception our firm has received, and the overwhelming interest from so many. We appreciate the fantastic response, but we always welcome the opportunity to help more employers with their retirement plan goals!