Helping others with their retirement readiness and wealth creation is our sole focus, and it is rewarding work. For busy business owners and their employees, it tends to be only one of numerous areas of focus. Since there is no other benefit that is more important than a 401(k) plan other than healthcare insurance, it is worth pausing to give it the attention that it rightfully deserves.
Here are some reasons why employers have chosen Shelton 401(k) this year:
1. Investment Fiduciary Protection – Shelton 401(k) provides investment fiduciary services for important protection and oversight. This means less time and less work for you which frees you up to run the company and still adhere to ERISA guidelines.
2. Authentic Client Service – a great 401(k) plan is a compelling recruitment tool to attract and retain top talent. Especially when there is a match – Safe Harbor or otherwise. Our committed Denver, CO-based client service team supports your employees on an ongoing basis which further helps demonstrate your commitment to their well-being once they become part of your team.
3. Passes the (annual) Test – A 401(k) plan can allow contributions of up to $56,000 between employee and employer dollars – a sizable chunk of money to be able to compound on a pretax basis over the years. We educate all participants which helps to reduce the incidence of top-heavy plans so that everyone is able to save their desired amount each year.
4. Customization is Key – We offer 401(k) plans that are customizable to best suit your needs with no added work by you. We present all the options that gets you exactly what you want in the 401(k) plan instead of a cookie-cutter approach.
5. Transparent Fee Structure – The SECURE Act gives up to $5,000/ year for a total of up to $15,000 over three years to start a new 401(k) plan. This makes it essentially free for many small businesses. Beyond the three year mark when tax credits subside, plan administration and recordkeeping fees for our clients remains fixed, with much lower asset-based fees than our competition. Lower fees mean more retirement savings plain and simple.
If you have less than great thoughts about your small business 401(k) plan and your service provider, it is the perfect time to ask why. Here are some questions to ponder:
1. Does it lack a feature that is important to you?
2. Do you have trouble reaching your service provider when you need something?
3. Do your employees hear from your service provider often?
4. Do you carve out time each quarter to monitor the investment selections?
5. When is the last time you had your fees benchmarked to make sure they are fair and reasonable per ERISA guidelines?